I think we all recognize that the big bubble in real estate (especially residential) that has lasted over the last 10 years is over. We won’t see that level of appreciation for many years to come if ever. Several leading analyst are predicting that we may not see those levels for at least another 20 years. I don’t know about you but I still have a lot of living to do over the next 20 years and want to make sure that my personal portfolio as well as my clients continues to hold its own. So here are some things to think about:
Some of the greatest opportunities rising to the top are people who cash and can dispose of bank loan inventory for people through short sales, pre-foreclosures, discount sales of real estate, and partnerships. As my wise friend Bob Zink says “The biggest potential principal profits will come from being able to carry one’s position for a long time into the future after commandeering great potential from those who can’t carry on”. Liquidity is more of a king than ever. Thos who have some will be able to make some great deals. Many people want to guard their liquidity because once it’s all used, they are out of the game. We have several opportunities to put together deals with new tools and using some old time real estate that can create incredible opportunities.
Take a lesson from Warren Buffet and Colby Sanlian: Growing cash flows from solid business’ with low leverage always puts one ahead of competitors, lenders, disasters, accidents, trends, and political challenges, so they are the ones to profit from those who are short one element to get to the finish line.
For more information on how to cash in on the great opportunity in the market call Rene’ Nelson at Pacwest Commercial Real Estate, Inc today at (541) 912-6583.
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