Build a Portfolio That Pays You Even When Markets Crash

Join an active community of RE investors here: EPISODE OVERVIEW 🎙️ In this episode of The Real Estate Investing Club, I sit down with Patrick Grimes of Passive Investing Mastery — an investor who lost everything in a speculative pre-development deal before the 2008 crash and rebuilt himself into a diversified portfolio operator spanning commercial real estate, industrial assets, retail, energy, legal finance, and medical investments. Patrick's story is raw, honest, and packed with the kind of hard-won insights that can genuinely reshape how you think about building lasting financial freedom. 💡 FROM LOSING EVERYTHING TO BUILDING REAL WEALTH 📉💰 Patrick's journey starts with one of the most powerful wake-up calls in real estate investing. Before the subprime mortgage collapse of 2008, he signed a personally guaranteed loan on a speculative pre-development deal — and when everything fell apart, he not only lost the investment but was later hit with an income tax bill on the bank's forgiven debt after foreclosure, something most investors never even know is possible. Rather than walking away from real estate forever, Patrick doubled down on his engineering career, earned advanced degrees, and spent years studying exactly how wealthy people protect and grow their money outside of the stock market. What he discovered changed the entire trajectory of his financial life. WHAT DOES RECESSION-RESILIENT REALLY MEAN? 🏡📊 One of the most eye-opening parts of this conversation is Patrick's breakdown of what recession resilience actually looks like in practice. It is not just about asset class — it is about the precise combination of location, asset type, and business strategy working together. Drawing on Federal Reserve housing data, Patrick explains how Houston's three-bedroom, two-bath single-family homes barely moved during the 2008 collapse while other markets spent over fourteen years trying to recover. This kind of rigorous, data-driven thinking is the foundation of how Patrick invests today, and he shares exactly how you can apply that same framework to your own real estate portfolio. WHERE SMART INVESTORS ARE PUTTING MONEY RIGHT NOW 🏭💼 With commercial real estate valuations down 10 to 30 percent nationwide, Patrick sees a generational buying opportunity for investors who are prepared and paying attention. His team is actively acquiring distressed industrial warehouses and small retail strip centers through direct-to-owner outreach — bypassing brokers entirely and going straight to motivated sellers before anyone else gets to the table. At the same time, they are also lending to small-balance commercial operators at elevated interest rates, generating strong income while continuing to identify the right acquisition opportunities in the market. 💰 Want to learn more about our guest? Connect here: Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at or click here: Send us Fan Mail Join the Online Community here: Support the show

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Build a Portfolio That Pays You Even When Markets Crash is an episode from The Real Estate Investing Club by Gabe Petersen.

This episode is 40:00 long.

This episode was published on Mar 10, 2026.

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