Real Estate Investing in the Coming Recession

Many people are wondering if the current COVID-19 pandemic will lead to a recession, but according to Jim Egan, head of commercial real estate banking and senior vice president at Bryn Mawr Trust, a recession can be the best time to invest in real estate.    Falling asset prices can create a buyers’ market if other investors are forced to sell.  “If you purchase right and understand your costs, a fix and flip or buy and hold can both be viable options during a recession,” Egan says.

Mihal Gartenberg, an agent at New York-based Warburg Realty Partnership, agrees.  “When the stock market is doing well, prices tend to go up as investors have more capital. When the stock market is doing poorly, investors who are looking for other opportunities find that real estate is a safe haven.”

If you know what you’re doing, there are many good reasons to invest in real estate during a recession.  You can read about it here.