alright guys what's going on this is
Daniel one half of the Kwak brothers
and in this video we're gonna talk about
the recession and we're also going to
talk about how to recession proof your
real estate investing business so let's
go ahead and cue that intro and without
further ado let's go ahead and get
started all right guys welcome back so
in this video we're gonna talk about
something that a lot of people talk
about a matter of fact if you turn on
your TV right now and you know you turn
on CNBC you'll probably hear anything
about the recession you'll probably hear
stuff about what's going on the market
right what's going on with global trade
but the one thing that a lot of people
are talking about is an upcoming
recession and you know I think it's
something that's I kind of in our back
of our minds all of us were
entrepreneurs and investors you know we
kind of don't know when it's gonna
happen and you know there's a lot of
question marks that's going around so
hopefully in this video in recession
proofing your real estate business I'm
gonna offer you a little bit of clarity
but also redirect some good questions to
ask yourself so that way you can be
prepared to monetize what's going to
happen so first off first and foremost
go ahead and click that subscribe button
and click on that notification bell
because well the more you do that the
more I get paid but no in all
seriousness guys we do our best every
single week to put out some great
content for free for you guys to enjoy
and make money off of right ultimately
that's what we're trying to do the end
goal the end game so to speak is for us
to increase our passive income so we
could do more with our time control what
we're doing spend more time with family
and really just kind of live out our
purpose so let's go ahead and get into
the topic of the recession well what is
a recession well I think we can all
agree a recession is when long story
short the economy doesn't do too hot you
know but I want to first talk about what
causes the recession and I want to kind
of use a reference of one of my favorite
movies of all time the big short for
those guys that have a watch that movie
you know that features Steve Carell and
Ryan Gosling and you know it's a story
about how these guys basically saw what
was happening
during the 2007-2008 recession while
everybody who kind of was asleep at the
wheel and although it's you know it may
not be today we're you know a lot of
people are asleep at the wheel well you
know if I turn on the TV and I look at a
lot of different YouTube channels a lot
of people are saying that it's gonna be
okay you know you should continue to
invest you should continue to you know
buy real estate and all of all this for
me a lot of nonsense because you know a
lot of the sources and the information
they put out well you know in all
honesty it's a little biased because
well you know if an individual if a guy
is sitting on it you know a TV or a
youtube channel and he's telling you to
buy real estate or invest with this
company because they're continuing to
buy buy buy and buy well I don't know if
that's the best thing you know if
especially if at the same breath we're
gonna say that an upcoming recession is
imminent and it's gonna happen in a year
or two years whatever it may be so let's
go back right what is a recession what
causes a recession well what caused the
2007 recession according to the movie
and also a lot of the research that I've
done and on top of it recessions that
happened before that and before that and
before that well there's a lot of over
leveraging right there's over leveraging
and there's also deception what do I
mean by deception well in 2007 a lot of
people were buying homes right that's
the main reason why that crisis occurred
right mortgages and money was giving out
like candy it was like The Oprah Winfrey
Show right like you get a mortgage you
get a mortgage everybody like everybody
check under your chairs there's a
mortgage right like check under your bed
there's another mortgage and a lot of
people who honestly could not afford to
get a mortgage or being given out these
mortgages you know anyways you know
stuff like no income verification and
you know no proof of income might know
no tax return right like none of that
was and they're still being given out
mortgages and ultimately what happened
in terms of the deception was that well
a lot of these mortgages got bundled up
together and they were being traded
amongst big banking institutions and
well they were being given really good
ratings when in all reality they weren't
they weren't good
at all it was really bad debt right
again people who should not have been
getting mortgages getting mortgages
anyways and those mortgages being
bundled up together and you know what
week with the movie called CDOs right
being bundled up together and being
given a phenomenal rating right the
triple-a ratings are double right like
as they saw in the movie well I've been
reading a lot of articles and doing a
lot of research because that's what
happened in 2007 a lot of that was going
around it was being over leveraged and
also the deception of the rating
agencies and ultimately it came tumbling
down well with my research that I've
been doing a lot lately it turns out
that they're pushing the same CDOs
again it's happening all over again for
the last 18 months I've been drawing up
a plan for how to make money in the
recession we're gonna talk about that
later in this video but let's go ahead
and continue what causes it because well
this time around it's not just
single-family housing it's not just
mortgages but it's also lines of credit
it's also credit cards in general it's
student loans and student debt and it's
a lot of commercial real estate I think
we can all agree that with multifamily
buildings and apartment complexes a lot
of people are going after those right
now
matter of fact for those of you guys
that are very deep into our content and
a lot of the real estate investing
videos that we put out you guys will
know that the last apartment building I
bought was 2017 and it was for a very
good reason because I found myself
having to compete was a lot of different
offers a lot of people were overpaying
for apartment complexes they were
getting adjustable financing they were
getting interest only financing and a
lot of business plans that I observe
today when it comes to individuals
buying apartment complexes lean very
heavily on refinancing and cashing out
their investors and having very little
equity left when I look at scenarios
like that it worries me and it leads me
to believe that better opportunities are
going to come off of those situations in
the not-so-distant future so in terms of
a recession overall we're talking about
over leveraging we're talking about
deception and we're also talking about
fools who may be putting themselves in a
scenario where they may be the motivated
seller in the not-so-distant future so
before we move on guys let me know your
thoughts right I could go on for hours
and hours and hours about what causes of
recession we can get into stuff like
monetary policy and fiscal policy but
that's not what this video is about this
video is about recession proofing your
real estate investing business so
comment down below guys what your
thoughts are on the recession I want to
make this video a little different
typically it's me kind of just doing a
talking head but I want to kind of turn
this into a forum and I want to make
this you know 15 minute video kind of
that's like a jumping-off point I want
to make this a video where we could
start a conversation and start a thread
in the comment section below and kind of
do like a forum so this is where I kind
of encourage the typical internet
behavior of you know start an argument
start an argument in the comment section
just don't get too personal and start
calling each other names but you know
let's put our knowledge to the test
right and there's something that you
wish that I could have said differently
feel free to comment down below so let's
get into now how do we how do we
recession prove our real estate
investing business well I will share
with you guys three things that I'm
doing right now you know to my belief
because my personal prediction again
guys this is a Matt my personal opinion
and my personal prediction based on the
information and the research I have done
it leads me to believe that a recession
may occur in the second or third quarter
of the year 2020 that is what leads me
to believe that it's gonna happen then
so right now I'm preparing and I've
actually devised the plans for the last
18 months on what I'm going to do and
I'm gonna share with you guys three
things that I'm doing right now that you
guys could also duplicate to do that as
well now if you're interested in the
more specifics of my plan and what I'm
trying to do and you're looking to get
more information on it feel free to
click on the description below or visit
the clock where there's calm forward
slash learn and you guys can get more
information on that or if you want to
reach out to me personally email info at
the clock brothers
that's I and fo at the clock brothers
calm so without further ado the first
thing that I'm doing and you guys will
probably see somewhere in the screen so
you guys are able to take notes the
first thing that I am doing right now is
I am looking at different markers I'm
specifically identifying three markets
that I'm going to invest in that I
believe are going to be the most
beneficial in terms of my acquisition
costs when I do invest during the
recession so identifying three top
markets that have a lot of over
leveraging and a lot of motivated
sellers so these are markets potentially
where it goes way up and way down so
states like um like Texas East Coast
West Coast you know I find a lot of
times in the Midwest the values don't go
up and down as much as the more popular
states and a lot of that has to do with
a lot of the foreign money that's been
buying up real estate the last five to
ten years especially a lot of the
Chinese money money from South America
from European investors who love
European Federal Reserve's right now at
the time this recording is at 0% so it
would explain as to why American real
estate looks a lot more attractive than
a lot of different places so even in the
Midwest you could find some great deals
there but I'm identifying three markets
to where I believe I'm gonna have low
acquisition costs in terms of being able
to buy properties as little for the
dollar as I possibly can without
sacrificing value or income or even
location so identify the three top
markets based on different aspects of a
recession now if you're in an industry
right if the market that you're
identifying is in an industry where it's
very heavily reliant on recession
factors for example manufacturing it may
not be the best market to go because
well if the recession occurs and let's
say manufacturing companies are take a
big hit and let's say you identified a
city that relies a lot on manufacturing
for employment that might not be the
best case scenario as to a lot of people
may get laid off they might not be able
to
pay rent therefore affecting your pocket
so step one identify three markets step
two and this is probably the most
important thing I'm doing right now is
I'm raising a lot of capital a matter of
fact my largest efforts what I'm
spending most of my time doing today
aside from putting out content for you
guys is actually raising capital I'm
raising a lot I'm raising millions and
millions of dollars of capital to be
with deploy when that opportunistic time
comes now if you guys have watched any
other videos on raising capital or
perhaps you're a student of our clock
brothers education family and you've
watched my three four-hour class on how
to raise capital on how I was able to
raise tens of millions of dollars and in
private money well you guys will know
exactly what I do and what I talk about
in terms of how I recruit investors and
how I maintain a relationship with them
and it's important not to raise the
capital but make sure that they share in
the vision that you currently have so
you've got to devise a plan right so
aside from the three things I want you
guys to devise a plan on how you're
going to use the recession to basically
make money right monetize the current
market cycle so number two raise capital
right and I'll just say like like you
know section two a you know make sure
that your investors know what you're
trying to do right it's very very
important because one of those key
things that happen during a recession is
that investors get scared they get
fearful and they don't want to get into
anything because times are tough right
money is more expensive people are
freaking out right so make sure that
they have the right expectation and the
right plan in place of what you're
trying to do a lot of my investors do
have that plan right a lot of my
investors that I want to deploy during
their time of the recession have that in
mind of what I'm trying to do number
three take those three markets and
develop a team and every single one of
those three markets so I'm talking about
contractors property managers I'm
talking about attorneys and people who
are going to get you deals and a lot
more people that you're gonna get in
your real estate investing team not only
identify those individuals but make sure
they have the right ethical conduct to
which they do business and lastly make
sure
they also have the same vision of what
you're trying to do that way it gives
your people or more of a heads up and it
also helps the individuals that are
looking for deals for you to identify
more carefully and clarify what you are
specifically looking for because think
about it guys
when the opportunistic time comes you do
not want to waste any time if you see a
deal you want to be able to jump on it
negotiate and close ASAP you don't want
to wait around right and taking months
at a time building your own business to
go after it when that time comes you
want to be ready therefore you want to
have the market identified the capital
race and you also want to have the team
members and the people in place for you
to execute your deals along with your
plan what is your business plan right
how are you going to structure it what
are some things that is unique to the
recession that's gonna help you make
money right so if you guys have any
questions on how to prepare for the
recession feel free to comment down
below again guys it would mean a lot if
you guys subscribed and liked this video
and clicked on that notification bell
and overall if you guys have any
questions on the recession and how to
prepare for or what it exactly is
comment down below or check out more
information in the description now a lot
of people have been asking me you know
what is another video that you guys have
put out you know that you and Santa put
out that would help you actually prepare
for the for the recession but also build
your portfolio so we actually made a
video I believe it was about like a year
or two ago but we're going to remake it
so feel free and that's why I say click
on the notification bell because well
you know once we put it out once we make
it you guys will get you guys will get a
notification on your phone or your
laptop that it's come out and you'll be
the first one to know but owner
financing the concept of owner financing
is extremely important and I think that
is one of the key factors that's going
to help individuals acquire a lot of
buildings quickly and also set up great
deals during the time of recession if
you think about what happens during
recession you have a lot of motivated
sellers therefore they may be more open
to the concept
of doing seller financing and selling
their complex or asset on contract for
deed or agreement for deed or seller
financing whatever you want to call it
so feel free to check out our video it
should be in the description it's called
how to negotiate for owner financing
there's two videos actually there's one
15-minute video and there's also a 40
minute video and the 40 minute one is a
role play that Sam and I do together
where I act as the buyer and Sam acts as
the skeptical seller who gives me a hard
time on the seller financing concept so
check those two videos out because I
really think that they're going to be
very handy and also important during the
time of recession right a lot of the
opportunistic time it's gonna be a great
way for you to increase your portfolio
and again guys I will be recording the
hot indigo shape for seller financing
video very shortly a matter of fact it
should come out a week or two from now
so click on that notification bell so
that you'll be the first one to see it
and stay ahead of the game in front of
everyone else so again guys I really
hope you enjoyed this video in terms of
how to recession-proof your real estate
investing business and again guys I
really want to see every single one of
you win so I'm always praying for you
all I love you guys thank you so much
for being part of the clock brothers
YouTube family hope this video was
helpful and I'll see you guys in the
next one
