4 Things I Know, TO A CERTAINTY!
Here are the 4 reasons why I know, TO A CERTAINTY, that now is the time to buy commercial property. As with all investments, you must be cautious, judicious, and well informed but without a doubt, NOW IS THE TIME TO BUY!!
Certainty #1—There are properties for sale right now that can be bought for well under replacement cost. This alone would be a compelling reason to consider buying your own building but it is not the only reason.
Well run companies are surviving and competition is falling by the wayside. Businesses that have survived the recession have shown their ability to operate and the Small Business Administration (SBA) stands ready to reward you. With assistance and loan guarantees that make financing of up to 90% of an owner/user building purchase possible. Now is the time to buy your own building!
Certainty #2 – Quality investment property holds value better than the broader market.
Through the past 24 months of economic contraction and declining values, investment property and their value have gravitated largely toward 2 categories: one characterized by stabilized occupancy with well managed tenant businesses, and the other made up of declining occupancy compounded by declining rents. Perhaps surprisingly, BOTH can provide exceptional returns and future value. The first, often described as the “flight to quality” should be more obvious as a more secure investment. Solid tenants have propped up values and these investments have not suffered as much as the broader market. Not a lot of hidden value here; just quality income. The second category involves investment property with upside earnings potential. Higher vacancy and lower rents at these properties can be converted to income opportunity. Don’t be mistaken; not all vacancy represents upside potential. Some properties will always under-earn. On the other hand, choosing the right under-performing investment property in a depressed market can represent a significant additional discount and value opportunity. Now is the time to buy the right investment property!
Certainty #3 – When the economy gets better, values will go up.
Sooner or later, the economy is going to improve and with it, property values. There isn’t a lot of room for values to decline much further unless the economy collapses, and no one thinks that’s going to happen. Why? Well, to over simplify, the USA is too big to fail. Our creditors can’t afford US to go bankrupt. The short story is that values are going to go up and now is the time to buy!
Certainty #4 – If the economy doesn’t improve quickly enough, inflation will set in and real estate values will go up.
A lot can happen as a result of all the recent global economic challenges, and I certainly don’t have a better crystal ball than anyone else. By the same token, it doesn’t take a rocket scientist to connect the dots either. What’s most likely to happen before the economy improves? Inflation. It’s not a question of ‘if’’ inflation is coming, it’s a question of ‘when’. Now, what happens with inflation? Real estate is a proven hedge against inflation where values go up, making NOW the time to buy!
To put this all in a nice tight package, there are value opportunities for owner/users and investors on the market right now and every indication that values are going to go up, not down. Don’t miss this unique opportunity to buy while property is at a discount. Many properties are on sale for a limited time only! Now is the time to buy commercial property!
Call me to schedule an appointment where we will assess your business needs and investment requirements. Matching your profile with the right opportunity is the ‘upside’ I add to the equation for you. Now is the time to buy the right property.
Dan Mincher, March 2011
Here are the 4 reasons why I know, TO A CERTAINTY, that now is the time to buy commercial property. As with all investments, you must be cautious, judicious, and well informed but without a doubt, NOW IS THE TIME TO BUY!!
Certainty #1—There are properties for sale right now that can be bought for well under replacement cost. This alone would be a compelling reason to consider buying your own building but it is not the only reason.
Well run companies are surviving and competition is falling by the wayside. Businesses that have survived the recession have shown their ability to operate and the Small Business Administration (SBA) stands ready to reward you. With assistance and loan guarantees that make financing of up to 90% of an owner/user building purchase possible. Now is the time to buy your own building!
Certainty #2 – Quality investment property holds value better than the broader market.
Through the past 24 months of economic contraction and declining values, investment property and their value have gravitated largely toward 2 categories: one characterized by stabilized occupancy with well managed tenant businesses, and the other made up of declining occupancy compounded by declining rents. Perhaps surprisingly, BOTH can provide exceptional returns and future value. The first, often described as the “flight to quality” should be more obvious as a more secure investment. Solid tenants have propped up values and these investments have not suffered as much as the broader market. Not a lot of hidden value here; just quality income. The second category involves investment property with upside earnings potential. Higher vacancy and lower rents at these properties can be converted to income opportunity. Don’t be mistaken; not all vacancy represents upside potential. Some properties will always under-earn. On the other hand, choosing the right under-performing investment property in a depressed market can represent a significant additional discount and value opportunity. Now is the time to buy the right investment property!
Certainty #3 – When the economy gets better, values will go up.
Sooner or later, the economy is going to improve and with it, property values. There isn’t a lot of room for values to decline much further unless the economy collapses, and no one thinks that’s going to happen. Why? Well, to over simplify, the USA is too big to fail. Our creditors can’t afford US to go bankrupt. The short story is that values are going to go up and now is the time to buy!
Certainty #4 – If the economy doesn’t improve quickly enough, inflation will set in and real estate values will go up.
A lot can happen as a result of all the recent global economic challenges, and I certainly don’t have a better crystal ball than anyone else. By the same token, it doesn’t take a rocket scientist to connect the dots either. What’s most likely to happen before the economy improves? Inflation. It’s not a question of ‘if’’ inflation is coming, it’s a question of ‘when’. Now, what happens with inflation? Real estate is a proven hedge against inflation where values go up, making NOW the time to buy!
To put this all in a nice tight package, there are value opportunities for owner/users and investors on the market right now and every indication that values are going to go up, not down. Don’t miss this unique opportunity to buy while property is at a discount. Many properties are on sale for a limited time only! Now is the time to buy commercial property!
Call me to schedule an appointment where we will assess your business needs and investment requirements. Matching your profile with the right opportunity is the ‘upside’ I add to the equation for you. Now is the time to buy the right property.
Dan Mincher, March 2011
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