When the U.S. faced economic challenges in 2023, many investors asked the same question: Can you really get rich during a recession?
Now that we’re a few years down the road, we can look back and see what worked, what didn’t, and how those lessons can prepare us for the next downturn.
Real estate investor Thach Nguyen became a perfect example of how to make money in a recession by focusing on fundamentals, patience, and smart buying strategies. Thach didn’t just survive the 2023 slowdown; he used it to grow his wholesale real estate empire.
So, if another recession hits, how can you position yourself to come out ahead like he did?
What the 2023 Recession Taught Real Estate Investors
The 2023 economic downturn hit hard. Interest rates climbed, home sales dropped, and investor confidence shook. But smart investors viewed that moment as an opportunity rather than a setback.
Thach Nguyen, who has been through four real estate cycles since starting his career in 1991, proved that downturns can create wealth if you know how to play the game.
Thach immigrated to the U.S. from Vietnam in 1975 with his family, who had only $100 to their name. He built his fortune by working as a realtor, saving his commissions, and reinvesting them in properties. By 2023, his portfolio had grown to over $100 million in real estate holdings.
Even during a slowdown, Thach stuck to timeless strategies, focusing on long-term value, disciplined buying, and steady deal flow through direct outreach.
Key Rules for Making Money in a Recession
Looking back, the principles Thach followed in 2023 still hold true for any investor trying to figure out how to make money in a recession today.
1. Follow the 30% Rule
Thach used what he called the 30% Rule. Every deal needed to have at least a 30% profit margin after purchase and rehab costs.
If a property didn’t meet that standard, he either flipped it or wholesaled it instead of keeping it.
That margin of safety protected him from market swings and gave him flexibility if prices dipped further, a smart move any investor can apply in the next downturn.
2. Think Long-Term, Not Short-Term
Many people try to time the market, but Thach’s focus was always on holding properties forever.
He believed wealth came from long-term ownership, not short-term flips. For instance, one of his first rentals, bought in 1997 for $105,000, was worth over $750,000 by 2023, and he continued to add value with an ADU to push it past $1 million.
When markets tighten, patience pays off. The investors who held on to solid properties through the 2023 dip saw major appreciation by 2025.
3. Always Add Value
During 2023, when the market slowed, Thach didn’t stop buying, he just got more creative.
He focused on value-add opportunities like adding ADUs (accessory dwelling units) to increase both cash flow and property value.
Adding value doesn’t just protect your investment; it multiplies your returns when prices recover.
Scaling Wealth Even When the Market Slows
Thach’s strategy wasn’t about getting rich from one deal. It was about scaling smartly over time.
By 2023, he was investing heavily in multifamily homes and commercial projects in addition to single-family rentals.
If you’re wondering how to make money in a recession today, think of it as a time to plant seeds for future growth. The deals you buy when everyone else is scared often become your biggest wins later.
Key takeaway: scale steadily, not recklessly. Focus on profitable, high-margin properties that cash flow even in tough times.
Thach’s 2023 Playbook for Recession Investing
So how did Thach navigate the 2023 real estate slowdown, and what can investors learn from that now?
1. Understand the Market Cycle
Every real estate market runs in cycles: expansion, peak, contraction, and recovery.
In 2023, Thach recognized early that we were in a downcycle, which allowed him to buy at deep discounts while others hesitated.
By understanding where you are in the cycle, you can make smarter moves, buying when prices fall and selling when they rise.
2. Tighten Your Buying Criteria
In a hot market, investors often accept smaller margins. But in a recession, you have to be more conservative.
Thach raised his minimum profit requirements and only bought properties that gave him plenty of cushion.
This disciplined approach protected him from risk while still keeping his pipeline full of good opportunities.
3. Double Down on Marketing
During 2023, Thach didn’t sit back. He increased his marketing, using direct mail, cold calls, and door-knocking to find motivated sellers.
While others froze, he was actively finding discounted properties.
If another recession hits, that’s the time to work harder on lead generation. The deals are still out there — but only for those who put in the effort.
4. Build Relationships and Buyer Lists
Thach also made sure he had a strong network of cash buyers ready to go.
That way, he could wholesale deals that didn’t fit his personal portfolio while still making a profit.
Networking and relationship-building remain key assets in any economy. When the next downturn arrives, your connections will determine how fast you can act on good deals.
5. Be Patient but Persistent
You can’t predict exactly when a market will turn.
Thach’s advice: focus on what you can control, marketing, education, and consistent action. The opportunities always return to those who are ready for them.
The Real Lesson from 2023: Consistency Beats Timing
The biggest takeaway from the 2023 recession was that timing doesn’t make you rich, discipline does.
Thach didn’t win by guessing when the market would recover. He won because he kept showing up, analyzing deals, and making smart buys.
For investors today, the next recession will separate those who panic from those who prepare.
By sticking to proven principles, strong margins, value-add projects, long-term thinking, and consistent action, you can thrive no matter what the economy does.
FAQs About How to Make Money in a Recession
Is real estate still a good investment during a recession?
Yes. When home prices fall, it’s one of the best times to buy properties at a discount. Long-term investors can build wealth by focusing on cash flow and value-add opportunities.
How can beginners start investing during a downturn?
Start small. Learn how to analyze deals, build relationships with local investors, and find motivated sellers. Wholesaling and small rehabs are great entry points.
What’s the safest way to invest when the economy slows?
Stick to fundamentals, positive cash flow, conservative debt, and properties in strong rental areas. Avoid over-leveraging and stay liquid.
Should I wait until the economy improves to invest?
No. Waiting for perfect conditions usually means missing the best opportunities. Focus on education and building your deal pipeline now, so you’re ready when others aren’t.
Final Takeaway
Looking back, 2023 reminded investors that recessions don’t destroy wealth, they transfer it.
Those who stayed disciplined, patient, and creative made life-changing gains when the market recovered.
