By James A. Gage
Many of you have asked me to
let you know when I see another real estate trend/cycle
developing, so your wish is my command.
What I am seeing is just
starting to develop, that is, another real estate tsunami in
the making – Commercial Real Estate !
I was very reluctant to call this cycle until I could
confirm this with solid data, and now I have! If you’re an
investor stay clear of commercial properties unless you use
1 of the 3 strategies I lay out:
-
Unless you have someone waiting in the wings to lease or
buy said property- don’t touch it with a 10 foot pole!
- You
can negotiate it 35%-40% under Fair Market Value
- You
can use a Lease Option to secure the property; remember
it’s the ultimate escape clause!
Now there is an exception
to every rule, and commercial real estate is no exception.
That being said, you will hear people and guru’s hyping up
commercial real estate as the last frontier for investor’s
to invest. But I believe that we will soon see massive empty
commercial dwellings with tumble weeds blowing through them
due to the following reasons:
-
Consumers are holding on to more of their income; people
are becoming savers again.
-
Christmas sales will be much lower then forecasted
causing retailers to close stores.
- If
big retailers who use leverage to buy are feeling the
pinch what does that mean for “Mom & Pop” stores.
- More
people are turning to the internet, rather brick and
mortar stores.
-
Businesses are filing for bankruptcy at an alarming
rate, and start up businesses are at a 35 year low!
This is just a brief
schedule of indicators supporting my call – there are at
least 50 more…
I have been accused in the
past of being the type of person that looks at a glass half
empty Nothing could be further from the truth, actually, I
look at it half full also! I want to be a balanced investor,
looking at best case and worse case scenarios, thereby
allowing me to make educated and balanced decisions on my
investments. That is how I have been able to survive the
last 21 plus years as an investor in changing trends and
cycles; now I pass on my observations to you my fellow
investors.
Until next time – may all
your investments be profitable.
"You are who you are and where you are because of what you
have put into your mind."
For more information or pricing please do not hesitate to
call or e-mail. I can be reached at (508) 595-9567.
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