BiggerNews April: 2022's Hidden Housing Market Investor Trap

The way the housing market moves largely depends on the real estate cycle we’re currently in. We all saw this during the 2007 subprime mortgage crisis as overleveraged homeowners saw their properties foreclosed on and later sold to investors who had cash on hand. We’re currently experiencing dramatic demand coupled with low inventory, so are we at the end of the housing market cycle, ready for a recession to knock down this house of cards?

Whether we are or aren’t close to a housing bubble bursting, smart real estate investors are protecting their wealth regardless of what is to come. This is where today’s guest, Doug Lodmell, has gleaming insight. Doug and his team have worked for decades to protect the wealth of real estate investors. This is commonly known as asset protection but can be thought of as simple risk mitigation for the new real estate investor.

Doug has been through expansion, crashes, corrections, recoveries, and everything in between and has seen what a poor asset protection strategy can do to an investor's portfolio. He drops some knowledge on today’s show around how real estate investors in 2022 can protect themselves from going through a repeat of 2008. His simple, yet undeniably valuable advice could save you not only money but years worth of work you’ve put into real estate investing.

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Join BiggerPockets for FREE:
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Listen to Full Episodes of “On The Market” Starting April 11th:
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Subscribe to The "On The Market" YouTube Channel:
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Hear Past Episodes on Asset Protection:
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Check Out Last Month’s Episode of BiggerNews on Foreclosures:
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Anonymity & Asset Protection for Dummies:
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How to Make Money in Real Estate—Whether You’re in an Up OR Down Market:
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Work with Doug and His Team:
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Connect with Doug:
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Connect with David and Dave on BiggerPockets:
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Follow David and Dave on Instagram:

Episode 592

00:00 Intro
04:12 Dave's New Podcast!
06:43 Quick Takes
21:51 Tools You Can Use to Protect Your Assets
24:44 Do You Need an LLC?
30:27 What Can Go Wrong in Real Estate Investing
37:41 The Biggest Risk in Today's Housing Market Cycle
43:14 Will Leverage Sink Your Portfolio?
50:28 Cash Hoarding vs. Reinvesting at Low Rates
01:06:25 Feel the Fear and Have a Plan

[angelaterranova]

I like the news analysis! Walmart list - eggs, bacon, mortgage! 😂😂

[goldstarsuccess]

Good analogy very informative for young and new investors like us in 2022

[darotwiler]

David Greene has the best analogies! 💯

[lisathompson]

Enjoyed learning from the three Ds today! Thanks for sharing your insight!

[eilenblanquicett]

Very informative!😮. How do I find out step by step how to put a house under an LLC?

[MonicaMorales-fryp]

This content is so valuable to all of us investors, big, small and on the way! Listening to pros like you with so much experience is so enriching. Thank you so much!!!!

[sanfs]

We missed Brandon so much. At the same so glad we still have David Green

[schellereid]

Thank for this sober show 592! As a MF investor in the great recession of 2008/2009, I can concur both rents and values CAN go down. Our property was bleeding money between vacancies and lower rental rates. Luckily we had W2 income to cover those vacancies but it HURT. This was a very healthy antidote to the usual exuberant real estate podcasts (which I love btw ❤️ ). I'd love to hear more about the NFT impact on RE. This has to be in the top 5 of all time beneficial BP episodes. The asset protection strategies conversation is priceless!!

[michaeld]

Just getting started. Trying to close on my first deal. I will definitely be getting an LLC set up before I flip.

[grownupgaming]

9:36 So glad you guys are talking about days on market. While the total inventory is absolutely dismal and people think there's no home for buyers until inventory rises to 1.6mil or above, I feel like, as long as days on market returns back to 60 days or even higher, then sellers will start dropping prices. That's what I'll be watching (and hoping!) for.

[christinearoundtheworld]

You're making a difference. Thank you!

[davidstephens]

Good episode! I would like to hear you guys cover the topic of how rising interest rates eats in to our cash flow possibly killing more deals. The rising interest rates can also kill off our our refi/cash out oppertunities. Thanks

[drhassan]

David Green, one of best mentality i have seen in real estate world !

[discgolfcowboy]

What about having an umbrella insurance policy to cover all your properties instead of having separate LLC's?

[tkingransom]

Awesome podcast I love the info on LLC'S

[JalapenoDNA]

HEY I AM A LOYAL WALMART CUSTOMER THANK YOU VERY MUCH!! I happen to be one of those mutants!!! 😂😂

[CaliGhost]

Loving the morning Uploads, good way to start the Day

[Michaelwentsomewhere]

I have so much cash right now...havent bought a deal in a year

[bloomip]

David great show man and even great prospective. How about refinancing in this market. What are your thoughts on that, interns of leverage?

[keaton]

I don’t know who needs to hear this but don’t climb a tree when running from a bear. They climb really well. Getting in a tree is like putting yourself on a kebab. 😅