What are the safest types of businesses in an declining economy
I’m new to CRE and excited to jump into things- but all of the recent perspectives I’ve been exposed to state that the economy is headed in a downward direction and I should invest defensively.

What businesses do well in a recession? 
IE: grocers and mechanics
[{"id": "iqlqarg", "text": "Cash for gold\u2026.", "replies": [], "depth": 1}, {"id": "iqlv7a5", "text": "Those that are owned by hard working owners.", "replies": [{"id": "iqmidd0", "text": "This is a ridiculous statement. The idea that businesses fail simply because people \"didn't work hard enough\" is hustle culture bullshit.\n\nThere is no shortage of businesses that had a solid business model but they still fail as a result of things like undercapitalization or changes in market demand that are completely unpredictable, regardless of the \"hard work\" owners put in.\n\nYour statement is basically reliant on the just world fallacy", "replies": [{"id": "iqmpho2", "text": "\"A good Captain always sails his ship to calm waters.\"", "replies": [], "depth": 3}, {"id": "iqmvx7p", "text": "As you say, you can't control for luck, but you can look for business owners who are actively involved and personally invested. It makes good business sense to evaluate the management as well as the business category.\n\nBased on their follow-up, I think you've assessed their mindset correctly, but I think they were close to making a good point anyway.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqm7cpe", "text": "Affordable (LIHTC) housing\n\nWhen times are good and prices go up, people need affordable housing.\n\nWhen times are bad and everybody is pinching pennies, people need affordable house.\n\nLIHTC is a pretty recession proof CRE industry", "replies": [{"id": "iqmdven", "text": "Rental housing in general works well in a recession because demand goes up as it is harder to buy a home.", "replies": [{"id": "iqo5naw", "text": "The counterpoint is that, in hard economic times, household formation usually drops as well. Less kids move out after college, less people getting married and moving into \u2018their own\u2019 place without roommates. \n\nRental housing is somewhat recession proof but its a bit more complex than \u201ccan\u2019t buy a house so rental demand goes up\u201d", "replies": [], "depth": 3}, {"id": "iqpjkh8", "text": "Counter point. Highly leveraged properties with very low DSCR suddenly become cash flow negative after debt payments when vacancy and bad debt spikes as people lose their jobs and can't pay rent and move back in with friends and family from their apartment.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqmb6za", "text": "Auto part retailers &amp; dollar stores are basically recession proof.", "replies": [], "depth": 1}, {"id": "iqmd6ia", "text": "Cold Storage and distribution", "replies": [], "depth": 1}, {"id": "iqmej0i", "text": "Car repossession", "replies": [], "depth": 1}, {"id": "iqmgnlr", "text": "Drugs and lottery tickets", "replies": [{"id": "iqmu46j", "text": "So, liquor stores, smoke shops, and convenience stores?", "replies": [{"id": "iqn13oq", "text": "Yep,\n\nDepending on your state legality, have the shops also carry hemp thc products.  Just make sure you manage them like other age verify products like tobacco, e-juice and alcohol.\n\nThey provide the best \u2018budget\u2019 high for the money while still having great retail margins. You just have to choose your vendors well, because there are a a lot of scammy ones out there that put out counterfeit, toxic, or adulterated products.", "replies": [{"id": "iqn3k7d", "text": "So many CBD shops have popped up in my community in the last year or two.", "replies": [{"id": "iqn7h9o", "text": "It\u2019s been very popular,  I\u2019ve heard people argue that you would have been on the trend in 2019.  But others think that it\u2019s still early in the cycle, and the issue will be those retail outlets that have access to the best and most innovative products.\n\nIt\u2019s currently a bit like early cannabis in California where anything sold for $1k/lb no matter the quality.  Versus now where the innovative high quality products sell, but the mids don\u2019t in the legal market.\n\nThe big issue is what will happen in the 2023 Farm Bill.  My guess is that it stays legal but you\u2019ll see states either ban it for moral or to favor political interests.  Or, like most are doing, tax it.\n\nThe reality is that most of the product has innovation is occurring in hemp, because it\u2019s much cheaper to operate from a regulatory and compliance standpoint.\n\nThat being said, I\u2019d still have a broad selection of products that are likely to remain popular in periods of high inflation and economic times.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iqmyfs6", "text": "mobile home /manufactured home sites", "replies": [], "depth": 1}, {"id": "iqmyr3e", "text": "Funeral homes", "replies": [], "depth": 1}, {"id": "iqmz3w0", "text": "Self storage properties are generally known to have recession-resistant characteristics", "replies": [], "depth": 1}, {"id": "iqn94fi", "text": "Medical offices/surgery centers", "replies": [{"id": "irgptnz", "text": "^this", "replies": [], "depth": 2}], "depth": 1}, {"id": "iqne57q", "text": "Beauty supply", "replies": [], "depth": 1}, {"id": "iqnh89p", "text": "These are recession resistant historically speaking.  This time it appears that absolutely everything, gold, investments, real estate, debt,stocks is at a high. Nothing is low except interest rates and Crypto coins of all things.  I\u2019d say expect the unexpected. It could be a bait and switch!", "replies": [], "depth": 1}, {"id": "iqnlm6d", "text": "Casinos", "replies": [], "depth": 1}, {"id": "iqobyev", "text": "LIQUOR STORES. SLOT &amp; GAME MACHINES.", "replies": [], "depth": 1}, {"id": "iqprils", "text": "Towing/repo!", "replies": [], "depth": 1}, {"id": "iqth56m", "text": "Supermarkets, medical, funeral home, fuel / energy.", "replies": [], "depth": 1}, {"id": "iqtojd7", "text": "Self storage", "replies": [], "depth": 1}]