Did You Hear That the Commercial Real Estate Market is About to Tank Again?

I heard that too. I also heard it’s on a rebound and 2013 is going to be the most prosperous year we’ve seen in Commercial Real Estate in a decade. Others say its going to stay stagnant for the next twenty five years. So what is the commercial real estate market going to do?

While it’s wise to try to look to the future and predict where it’s going – the simple fact is I don’t have a crystal ball and none of us can ever know for sure. The market has ups and the market has downs. It’s this fear that causes a lot of people to stay away from the commercial real estate market and keep their money in savings accounts, stocks, and other places.

For some investors, “timing” the market is everything. When they miss that timing (like five years ago) bad things happen.
Successful investors that understand real estate, are in it for the long haul know that money can be made in any market.

Making money in commercial real estate for the long haul is not about timing the market. The market will go up and the market will go down. This is expected and good for the economy. The way to make money in any market isn’t about timing the exact top and bottom of the market. Making money in any market is about math.

If the math is right, then it’s right. if you buy a commercial property that produces $1000 per month in positive cashflow every month, it doesn’t matter who is in the White House, what the national debt is or how many foreclosures are occurring in the country. That positive cashflow is coming in regardless.

Obviously there are factors outside our control that could affect things. Vacancy rates could increase, unemployment could increase.

By sticking with math that works, you are able to enjoy positive cashflow when the market is bad, when the market is good, and when the market is stagnant. Many investors are tempted with dangerous strategies to make money, but the investors who succeed, are the ones who stick with proper math in the good times and bad.

 

 

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared

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