People are fearing a recession right now and I think it's important to talk about it. There are lots of things that we didn’t understand when we were just beginning in the real estate business and through our podcasts, we hope to give you some tidbits that will help you on your investing journey. A recession is generally identified by a fall in the GDP in two consecutive quarters. So quarter four of last year, it was at plus 6.9% and then in quarter one of this year, it was at negative 1.5%. We're looking pretty okay, based on the predictions.
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There's a lot of uncertainty and it continues to compound essentially. So we're seeing a lot of the effects of the recession, even though we're not actually hit by it. But if we hit it, what investments are good for us? The answer is affordable housing. In 2008, which they call the Great Recession, single families plummeted. It was dubbed the real estate market crash. What a lot of people don't realize is that multifamily and mobile home communities during that time thrived. Even during COVID, mobile home communities and occupancy and rent went up. Green Street advisors said that mobile home communities are expected to outperform all other sectors through 2024. You want to keep on your 20 Mile March and not stop investing, not sit on the sidelines because you're fearful.
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Hey everybody! Flip and Dani here, founders of the Freedom Real Estate Group Family of Companies. Yes. There we go. Welcome to another episode of our podcast. And our podcast is called Freedom Through Passive Income.
One of these days, you're going to mess that up. I know. Welcome to another episode, this episode is called Recession, Wealth Creation.
Yeah, I'm super excited about this one, because people are fearing a recession right now and I think it's important to talk about it. There's lots of things that when we started investing, we didn't understand. And we had to look up research and things like that. And more and more and more of that we're starting to talk about in these podcast episodes that we can again, just kind of expand the knowledge to those of you who don't have the time to do it, right. That's kind of everything that we do is say, hey, we do this full time. So let us share our tidbits with you. So that way, in eight minutes today or 10, if I'm talking if I'm a chatterbox. You can get some tidbits that will help you on your investing journey. So first of all, do you want to define a recession?
So a recession is generally identified by a fall in the GDP in two consecutive quarters? Yeah. So yeah, so quarter four of last year, it was at plus 6.9%. Yep. And then in quarter, one of this year, it was at negative 1.5%. So again, you need two consecutive quarters to be negative for to be recession. And they're already predicting quarter two of this year as being plus 2.1 plus 2.3. So it's not like we might have been like, it's like a true recession. That's right. But and then you're also saying positive forecasts throughout 2024 is in the 2% range.
Yeah. So we're looking pretty okay, based on the predictions, if we hit those predictions, last quarters prediction was off by one point, they predicted to be a negative 1.4, we ended up at negative 1.5%. So, I haven't really studied the prediction versus actual for a really long history, but that's pretty close. Yeah, it's pretty close. So it doesn't look like we're going to hit a recession. But let's just talk about what investments are good, even if we do hit a recession, and sometimes when we feel like this uncertainty is happening, right? So uncertainty leads to volatility. And when volatility happens, then everybody starts to get a little fearful. They get panic. Yeah, they panic. Yes. And they pull their money out. DOW has been down almost 11%. Year to date. Bitcoin, I'll let you talk about Bitcoin.
I’ll let you rub salt in your wounds. Yeah. So Bitcoin is down almost 39% since Flip invested in it. It's true, actually, I don't think, well, it definitely has not been back to the point of was when we first invested in it. And I've only seen it go up and down between 29,0000 and 30,000 for the last five months. But anyway, it's down. It's not even in a recession yet. And it's still down 39%. Yeah, exactly. So let's talk about what happens in a recession. In a recession, people are typically losing their jobs, they have reduced buying power due to inflation, we are already seeing that for sure. And then there's a lot of uncertainty and it continues to compound essentially. So we're seeing a lot of effects of the recession, even though we're not as defined. We're not defined in a recession, right? We're feeling the effects, and people are fearful that we're going to be in a recession. Again, even though it doesn't look like we're going to actually hit it. So if we hit it, whether we don't or not, because it feels like it, what investments are good for a recession like this. It's really affordable housing. Yeah, right. Right. So go talk to people about what happens to asset classes when people feel this. The job losses, the fact that they can't buy as much as they used to.
Yeah, they usually downgrade. Yeah, so go from Class A and Class B, or Class B to C, C to D. And such it's, uh, or even into instead of moving from a house or class of a house to an apartment, or to a mobile home. Yep. And I know, we're going to talk about that here in a second. But it's just making it more affordable or moving to an area that's more affordable, especially because of remote work. Yeah, exactly right.
So in 2008, which they call the Great Recession. Single Family plummeted. Right. That's what everybody talks about. They talked about the real estate market crash. What a lot of people don't realize is that multifamily and mobile home communities during that time they thrived. So if you were in those types of investment, you didn't see the plummet that homeowners and investors of single family home properties saw during that particular period of time. Even in during COVID, mobile home communities and occupancy and rent went up. And Green Street advisors said that mobile home communities is expected to outperform all other sectors through 2024.
So I actually, there was a post just the other day, I sent it to Eric, and I tagged them. And it was somebody selling three different mobile home community parks. And I said, hey, this is something that we're going to want to start looking at. Because depending on how the market shifts, affordable housing is where you want to be. And that's where you're going to see the occupancy and the rent continue to go. And that's what you want to be watching for. Where's the occupancy? Where's the rent continuing to rise in periods of recession? Or uncertainty or Yeah, where it feels like it might be going into a recession. As that uncertainty rises, you want to keep we just did an episode about 20 Mile March, right? You want to keep on your 20 Mile March and not stop investing, not sit on the sidelines because your fearful…and wait, yes, no, you need to put your investment continually into the asset classes that are going to be performing surround yourself with the people that understand exactly where to put the money, how to make that shift, and continually be investing with him sitting on the sidelines is not going to do anything other than erode your cash away, because inflation is, let's say eight and your savings account is one. So you're losing seven percentage points. So you're just losing money. So just be smart. We always say Invest Smart, Live Happy, right? It's because you want to be watching and surrounding yourself with people who know exactly where to pivot when the time is necessary to pivot. It's why we've gotten into multifamily because we believe in it no matter what market it is, we've seen how multifamily survives and weathers any storm, mobile home communities is going to be something that we gradually get into as well just because of the affordable housing piece and knowing that occupancy and rents are going to be very very strong there even if things continue to stay uncertain and maybe not even reach recession level but just stay in an uncertain environment.
Yeah. Powerful stuff, man. Yeah, yeah. Make sure you head on over to our website www.FreedomCapitalInvestments.com and join our Investor Club to find out all of the things that we're doing behind the scenes and way if we got any deals coming in and whatnots.
Make sure you're hanging out with the gang over on Facebook and LinkedIn and YouTubers and Instagrammers and TikTokers. But hit the like button if you're not driving, hit the like button and you're going to hit the like button if you don't want us to go into a recession. Everybody hit the like button. This should be the most liked episode ever.
Right? We always like to end all of our episodes with Invest Smart. Live Happy. Bye everybody.
Hey, everybody, Flip and Dani here, founders of the Freedom Real Estate Group on founder folders. One of the founders of the Freedom Real Estate we found the founders. Take two.
Disclaimer: Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss
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