When the market’s booming, it is easy to believe the good times will never end. But what happens when the music stops and your holding costs start eating you alive?

In this episode, Marcus Crigler shares a hard lesson many real estate entrepreneurs are learning right now: the danger of ignoring the 10% Reserve Rule. He walks through the true story of a once-successful builder who went from making millions to losing it all, and the simple financial discipline that could have saved his business.

Listen as he breaks down how to protect your company when the market shifts, why this is a balance sheet problem, and how to survive downturns by managing cash instead of chasing profits.

You’ll Learn How To:

• Avoid the mistake that wipes out even successful investors
• Build and maintain proper reserves to survive market cycles
• Shift from a profit-first to a cash-first mindset
• Turn stagnant inventory into liquidity
• Use your balance sheet as a decision-making tool for long-term growth

What You’ll Learn in This Episode:

(01:17) How real estate made millions during the boom

(02:30) Make money while you can

(02:49) The 10% reserve rule every builder and flipper should follow

(04:02) What happens when you ignore liquidity during a slowdown

(05:32) The warning signs: rising days on market and shrinking margins

(08:37) Real estate as a longevity game

(09:00) The difference between a P&L exercise and a balance sheet exercise

(10:24) Why focusing on cash flow, not profit, keeps your business alive

(11:59) How to prioritize which properties to sell first

Who This Episode Is For:

• Fix-and-flip investors and builders who are struggling with rising inventory
• Real estate entrepreneurs who are learning to manage cash flow in tighter markets
• Business owners who want to build resilience and not just revenue
• Anyone ready to run a smarter, more sustainable real estate business

Why You Should Listen:

If your holding costs are stacking up and your margins are shrinking, this episode could save your business. Marcus reveals how small financial habits, like keeping 10% reserves and making balance-sheet-driven decisions, separate those who stay in the game from those who get wiped out when the market shifts.

Connect with Marcus Crigler:

• Website: https://beccfo.com/
• LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 
• Facebook: https://facebook.com/marcus.crigler