A friend asked me today what advice I would give to real estate investors at this time. Here is my answer…
My advice for investors at this time is that there are many good investment deals available, depending on your confidence in the future and your ability to hold for a number of years. While most of the press is devoted to residential properties such as short sales and foreclosures, and some of those could be good investments for the right buyer, we are also seeing potentially good properties available in commercial net lease and land. We had a rash of medical offices listed for sale a few months ago by physicians who were having their commercial loan come due and could not get new financing due to the freeze in commercial lending. Most of these were offering sale/lease-back deals with good cap rate. We also have builders and land developers who are having to sell off the future phases of excellent communities because they cannot get financing for further development. Land such as this is, of course, a long term hold under today’s economic and real estate market conditions, but prices are low, and a good location today will probably still be a good location when the market eventually does turn around, especially if it’s not too far from employment centers. Investors with funds should be looking for the bargains to be had while the prices are low.
If you would like to discuss investment opportunities and the strategies and dangers of a particular investment property type, contact me directly by posting a comment, and I will get back to you as soon as possible.