The real estate market in 2023 is becoming increasingly uncertain, with some people fearing a recession in the U.S. housing sector.
But, believe it or not, there are ways to recession-proof your cash flow and financial stability.
Although many industries inevitably decline in a recession, there are opportunities that can survive a recession and still make you reliable money.
That’s what I’m talking about in this article. Knowing how to make money during a recession using a proven model investing in a real estate market that transcends interest rates, stock market falls, and other factors that play into economic downturns.
And that model is with VestRight, where we show you how to find raw land with development potential.
Raw land is becoming increasingly popular in this regard, and with our model, we offer an opportunity to withstand a recession when you do it right.
By investing in raw land, you can take advantage of the current market state and benefit from potential market volatility.
So I’m going to explore how to make money during a recession, particularly by using VestRight’s model in the development space, plus tips on how to capitalize on raw land.
So if you're concerned about how your day job might fade in a recession, keep reading.
Raw Land in a Recession
Raw land development involves the process of purchasing and improving undeveloped, off-market land to make it suitable for use.
VestRight’s model is a specific approach to this type of investment that focuses on acquiring raw land at fair-market prices; adding value through improvements, such as zoning changes and approvals; and then presenting that development-ready land to home builders.
This model allows investors to capitalize on current market conditions while also setting themselves up for big-figure gains due to the value they provide to developers.
So how can this business model survive during recessions?
Large residential developers like Lennar, D.R. Horton, and Pulte need land that has development potential no matter the economic climate. If they're not building new houses, they're not making money.
What about the housing market?
Even an average recession might lead to a relative slow-down in housing, sure, but the home-building hamster wheel NEVER stops turning.
That's where some of our most successful students of the VestRight model find financial independence, through the economic sun and the rain.
The VestRight Model – What Is It?
The VestRight model shows real estate entrepreneurs how to capitalize on the unprecedented demand for raw land with development potential.
So many professionals are out there competing in the traditional real estate market, yet, one of the most profitable and least understood strategies in real estate is LAND… not the actual homes.
Using our proprietary off-market land acquisition process, we identify and acquire raw land that has development potential. We then take the land through the entitlement process to realize its greatest value, bringing it up to desired levels of development readiness before presenting it to home builders and developers.
We maximize our chances with a seller and buyer by leveraging our expertise in land selection, market analysis, and the entitlements process for each deal we pursue.
Now, let’s dive into the details of why our model still works in a recession.
The Market Demand
At the end of 2022 and the start of 2023, we have seen a recent dip in the demand for housing, which is undeniable.
That does not scare me at all. In fact, I'm glad to see a slowdown. The last couple of years were insane when it came to the demand for new housing.
We've been in a genuine housing shortage across the country. A recession doesn't change that.
A recession doesn't eliminate people's need for a place to live.
So the need for new housing is still there. It's huge. And just because it's gone down a little bit in recent months doesn't mean we need to worry about this market drying up altogether.
When prospecting raw land and getting it through entitlements for a housing developer, you'll enjoy a lot of flexibility in terms of how you handle the property's title, when you exit the process, and ultimately, how you manage your risk throughout the deal.
This flexibility is one part of what makes raw land a great opportunity, even during economic downturns.
You'll retain high-level control over your involvement and negotiations regarding the deal, allowing you to ensure you come out of the process making a substantial profit.
Raw land deals, particularly those developed using VestRight’s model, offer an innovative and valuable solution for those who do not have the capital to invest in traditional real estate.
You don't need a large down payment or to put any of your own money at risk. Instead, you can use VestRight to prepare off-market raw land with development potential and sell the property to land-hungry homebuilders for a profit.
What's more, VestRight provides investors with all the tools developers need to succeed in their endeavors.
So forget about exploring business loans or dipping into your savings account to get started.
With no investment capital required, VestRight makes it easier than ever for anyone looking for a way to make recession-proof income without taking on too much personal financial risk.
Additional Tips to Make Money During a Recession
As people face job losses and other financial issues, it’s important to find ways to make money during tough times.
Investing in understanding how to find raw land is one way to gain income during a recession, but there are other ways to make more money during an economic downturn as well.
Here are some additional tips you can use to earn money and give yourself a better chance at making a comfortable living, even during a recession.
Protect Your Wealth
Protecting your wealth during a recession can be challenging, but there are steps you can take to ensure that your financial security isn’t compromised:
- Avoid spending money aimlessly, taking care not to splurge during hard economic times.
- Maintain an emergency fund that will provide you with liquid funds in case of unexpected financial shocks.
- Reduce risk-taking activities, such as day trading individual stocks, and instead prioritize low-risk investments.
- Seek professional advice from a qualified financial advisor.
- Stay informed about economic trends so you can make smart decisions about how to manage your living expenses and protect your wealth during a recession.
- Keep good credit scores by continuing to make car payments, credit card payments, and any other credit obligations.
- Consider ways to reduce your monthly obligations, such as choosing a healthcare plan with lower insurance premiums, temporarily reducing your retirement plan contributions, renegotiating house rent payments, or canceling subscriptions.
Invest Where You Can
Viable long-term investments include dividend stocks and index funds, which operate similarly to mutual funds but without as much active management involved.
Investing in these types of stocks, especially when you can buy them at discounted stock prices, allows you to benefit from market volatility while protecting your assets.
Make sure you have a diversified portfolio that consists of dividend stocks, defensive stocks, government bonds, real estate, and other investments with long-term stability, such as those in the consumer staples sector.
Consider Alternative Real Estate Opportunities
While raw land is one of the best investments that can survive a recession, you may also be interested in other real estate opportunities.
Rental investments in recession-proof areas can be a popular alternative. Passive income from renting out a property helps create a guaranteed return that keeps generating easy money, even during economic hardship.
This could be a viable option for those who don’t want to commit to something bigger and build a legacy for themselves – which is what can be achieved with the VestRight model for raw land.
Replenish Your Savings
Building up your savings again after taking money out of your account can be done! Determine how much money you need to save and your timeline for achieving that goal.
Once you have a realistic plan, it’ll be easier to track progress and make changes as necessary. With dedication and discipline, you can replace the cash in your savings account in no time.
Plan for Your Future
Planning for your financial future during a recession starts with understanding your current financial situation. Knowing what assets you have and how much money is in savings is essential, as this will help you prioritize your personal finance goals.
Additional ways to prepare for your future include:
- Talk to a certified financial planner
- Prioritize retirement planning
- Maintain good financial habits
- Remember to consider disability insurance
If you've been wanting to make changes in today's uncertain economic environment, it’s essential to have a plan of action.
Raw land can be an effective way to withstand a recession and can open up financial opportunities for your future. As long as you follow the right method, dedicate your time, and do the research, you can take advantage of the benefits of raw land deals.
VestRightl will help you get there.
But it requires action.
Stop living in fear of the markets, and change your financial outlook by downloading our 7-Figure Raw Land E-Book. This short guide will teach you more about the VestRight model and how you can get started with raw land. Download it free today!