Selling Real Estate in a Recession: Why Timing Matters in Portland, Oregon

For real estate investors in Portland, Oregon, a difficult market can make it tempting to focus on what a property is worth today. David Moore, CEO of Equity Advantage, takes a much longer view. One of the most important lessons he learned from his mentor was that real estate is not about getting rich quickly. It is about giving an investment time to work and, whenever possible, avoiding the situation that can take that time away from you. It also gets to why the worst time to sell is when you need money most: needing the money can leave you with little choice about when to sell.

David learned that lesson from one of his mentors, Bob Nelson. “Real estate’s not a get-rich-quick scheme,” Bob told him. “It’s a get-rich surely but slowly scheme with one golden rule. Don’t get yourself in a situation where you have to sell in a recession.”

For David, that rule changes the way investors should think about difficult real estate markets.

Real Estate Takes Time

Real estate does not always move in a straight line. A property can perform well for years and then face a period when values, occupancy, or demand become more challenging. That does not necessarily mean the property itself has suddenly become a bad piece of real estate.

David’s philosophy is built around having enough time to ride through those periods. If an owner can continue holding the property, a difficult market does not automatically force a decision. The trouble comes when circumstances take that choice away.

An investor who needs to sell may have to accept whatever the market is willing to pay at that particular moment. That is why Bob’s advice was not simply to avoid selling in a recession. The real lesson was to avoid getting into a position where you have no choice.

The Worst Time to Sell May Be When You Have To

That distinction becomes especially important when a market is struggling. David points to the Portland building he was sitting in during the conversation. Walking through it, he estimated that it was only about 10% occupied, yet his reaction to the property itself was very different: “It’s a beautiful building.”

Those two things can exist at the same time. A building can be largely empty today and still have qualities that make it valuable real estate.

For an owner who can afford to wait, that creates options. For an owner who has to sell, the current occupancy and current market conditions become much harder to escape. That is where long-term investing and financial flexibility begin to intersect. Holding onto a property is only an option if the owner is in a position to keep holding it.

A Difficult Market Does Not Tell the Whole Story

Looking at a mostly empty building makes it easy to focus entirely on the vacancy. David looks at the physical property too. The building is still there, and its underlying characteristics have not disappeared simply because its current occupancy is low.

That does not mean every property will recover or that an investor should hold indefinitely. David’s point is about maintaining the ability to make decisions based on the property and your goals rather than being forced into a sale because of circumstances.

That is what makes his mentor’s advice so useful decades later. Real estate may move slowly. Markets may go through difficult periods, and properties may experience times when they are not performing the way an owner hoped. The investor who has time and flexibility can decide whether waiting makes sense. The investor who has to sell does not have that same luxury.

For David, that is one of the most important parts of long-term real estate investing: do what you can to preserve your ability to choose when you sell.

Frequently Asked Questions

Is real estate a get-rich-quick investment?

David does not view it that way. His mentor described real estate as a way to build wealth “surely but slowly,” emphasizing patience and the ability to hold through changing market conditions.

Why can selling real estate in a recession be difficult?

When an owner has to sell during a weak market, current conditions can limit the options available. David believes investors are in a stronger position when they can choose whether to sell rather than being forced to sell at a particular time.

Does low occupancy mean a building has no long-term value?

Not necessarily. David uses the example of a Portland building he estimated was about 10% occupied but still described as a beautiful building. Current occupancy is one part of the property’s situation, not necessarily the whole story.

The Guys With All The Answers…

David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 503-635-1031.