“Jamil! It’s happening! It’s happening! We’re in a recession!”
Now before you start to panic – or rather, panic further than you are – let’s just take a deep breath.
There you go.
To start off, we’re not technically in a recession.
I say that because there are a lot of factors that do indicate when the US enters into a recession and while our current economy might suggest that, some things don’t.
But there is good news!
Wholesaling Challenges We Face During a Recession
Whether we’re at the start of a recession or not, as wholesalers, we should still be business as usual, but with a few caveats.
The only thing in real estate wholesaling that changes during a recession are the property values. This means that buyers will be expecting discounts, so we have to adjust accordingly.
One of the things I’ve been saying is to continue paying attention to appraisal rules, even if one appraiser says something different; you should still keep those in mind and follow them.
Another thing to keep at the forefront is the US ARV (After Repair Value) map.
I’ve actually been telling my student members in Astro that the ARV map has been down because everything shot up.
However, the map is incredibly accurate right now. So what we need to be doing is making sure we’re locking down those deals at the appropriate number.
I talk a bit more about it in this video:
Again, as wholesalers, we need to be following the path the market is taking us. That means we need to be cognizant of what prices we’re seeing.
Guys, the market is at a strange place right now, but that only means we need to be paying attention to where we sit as wholesalers.
If you need help with the appraisal rules, you can download our free copy here:
Our Astro community is also another great place to find out what the percentage ARV is for your market, so if you aren’t a member, make sure you sign up to join us.
And if you’re still curious about wholesaling real estate, I will be at the Scale and Escape Summit in September.
Between Sept 9 through 11, you’ll be able to hear from some of the biggest names in the real estate space, so definitely mark your calendars for that.
Lastly, we’ll be doing another Mastermind in October, so if you want to learn even more about wholesaling, while also meeting other members of our community, grab your seat before they’re all gone!