"The first and the best victory is to conquer self." -- Plato
For several months now you have been hearing me harp on the fact that you better be getting into some well located apartments or commercial properties...NOW! What I am seeing in the marketplace are some of the best buying opportunities I have found in the past 18 years. I am not exaggerating.
Why? One of the reasons is the tough economic conditions going on right now.
How can that create some great buying opportunities?
What I am finding is a number of well-located, great apartment properties and commercial buildings that are running just fine...BUT THE OWNERS are having problems with their jobs, businesses, or other areas of their "financial lives". What this equates to is a need for quick cash - and some great buying opportunities.
Now there is even a better reason. Interest rates are remaining at their lowest point in a number of years. The big question in investors' minds is, "Will interest rates remain low, or are they going to go up?"
Let me give you a little insight into why it could be a good thing regardless of which direction interest rates go.
USUALLY when rates go down property values go up. This is because the cheaper it is borrow, the more one can afford to pay for a property in terms of the property cash flowing. The lower the rate, the lower the payment, and thus, higher monthly cash flow. This is great news for buyers.
This is USUALLY the case...but it will not be the case NOW though...and this is GREAT NEWS for us investors...
Why?
In general, owners will not be aggressive in raising their prices because of the perceived problems in the real estate market and the economy in general. I say perceived because there are many owners that the current economic crisis is NOT effecting, BUT, they think it is. Thus they will be reluctant to raise prices because "the current economic problem" will prevent people from actually paying MORE for their property...
This is where you come in. Start talking to your lenders NOW and locking in those interest rates. Start working with those owners to lock in those lower sales prices. Now is the best time in YEARS to be an investor. Make sure that you do not miss what could possibly be the opportunity of a lifetime!
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