Now is the time

  I would like to talk to you today about how to invest some of your money wisely in these uncertain times.  As we all know, real estate values have crashed.  Many companies that bought commercial real estate in 2006 …2007 have discovered that their property holdings are not worth the loan against the property, let alone the price they paid for the property.  They are being pressured by lenders to liquidate their holdings and pay down their debt.  This is nothing new, it happened in the 80’s and it happened again in the early 90’s.  How long will it last?  Nobody knows, probably at least a year or two.

How do you take advantage of the situation?  By purchasing commercial properties with good tenants and long term leases at these depressed prices.  Let’s look at the advantages:

• Cash Flow – Purchasing properties at today’s prices generates substantial cash flow from the lease, mostly tax sheltered by depreciation during the holding period.
• The cash flow enables you to ride out a storm.  If the real estate market goes down further, who cares?  You can hold on until sanity returns, because you are not sitting on an empty property.
• Hard Assets - real estate has historically been one of the best hedges against inflation.  With the government printing money like crazy, you know inflation will follow.
• Upon Sale - A chance, not guaranteed, to make a lot of money taxed at lower capital gains rates upon sale of the property.

Remember, cash flow is what gets you through times like these.

Currently, properties are coming on the market at distressed prices, but what are the good ones?  That's what we do, you have to kiss a lot of frogs before you find a prince.  We turn down 200 deals for every one we accept.