Thursday, July 12, 2012

The Perfect Storm For Commercial Real Estate Investing

From ValueWalk
July 10, 2012
By: Jacob Frydman

Summary: If one has impeccable timing, buying any investment vehicle will be profitable. If one doesn't, consider these three synchronous events for investing in real estate.

1) Buying debt on property is the cheapest it will ever be. Interest rates are artificially supressed longer than anyone expected.

2) $1.2 trillion in CMBS have been and are coming due. The financial industry has been hoping rising property values will save the day. But that isn't happening except in very specific real estate markets with specific properties. So get ready for more foreclosures to depress values.

3) The "Up Eurs" zone crisis is driving money to alternative investments. Et voilĂ , real estate.

The article I'm summarizing concludes with "Buy into REITs!" I showcased an article like this before, but the difference between this article and that on is that there is a light at the end of the tunnel! Buy low, add value (literally, revenue) and sell high!

Read this opinion piece in it's entirety at The Perfect Storm For Commercial Real Estate Investing

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

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