Uncertain times can create the best CRE deals

As uncertainty rises in markets investors tend to move their capital to the sidelines. It makes sense to be cautious when things are concerning or not clear. But there are a few reasons why you would want to invest when uncertainty is on the rise. 

First, often times commercial real estate marketing can be inefficient. Every single property type has nuances to them and creates opportunities for investors who are paying attention. One metro could struggle while another is growing. 

Second, there are always opportunities to add value to properties that need it. Often in times of uncertainty sellers may want to get a property off their hands fast thinking things will get worse. This can be advantageous for investors who own multiple properties in one area which can help generate stronger returns across an entire portfolio, maximizing efficiencies.

Third, now is the time to buy unique assets. Often times unique assets only show up to the market during times of uncertainty. Owners will often sell when fear hits the streets. When assets are great, rarely are they sold so when owners need to increase their capital they may jump to sell because there are far fewer bidders and the owner doesn’t want to risk not having enough cash during an emergency.

Fourth, this may be a great time to reposition. Some investors will sell properties because it is an opportunity to reposition their portfolio. They want to adjust their portfolio composition because of defensive reasons or because they want to capitalize on other opportunities. 

Lastly, people are always planning for the future. Getting properties that do not have prepayment penalties are great for refinancing if and when interest rates fall. This creates an opportunity for portfolio repositioning. Investors also like planning for the future by positioning their portfolios based on where we will be in 3-5 years.

Finding the right assets during times of uncertainty while fewer people are at the purchasing table can yield incredible results. Not being afraid to do a deal when the market is uncertain is a great way to find some of the best deals the market will offer. People that were buying in 2008-2012 and held till 2022 are now multimillionaire geniuses. Remember, in investing, never pass up a good recession. If you would like to stay up to date when Growth Vue finds these deals throughout these uncertain times, join our investor list. We analyze billions of dollars of real estate, calculating for the deals that create upside and protection against uncertain times. We look forward to creating value and upside for your portfolio.


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