Overcoming Investment Fears in Scary Times

Did investment experts back down when the market was shifting? Not everyone backed down. And they’re winning now.

Take a boom-and-bust reference to one city for instance. In the city of Miami, during the years 2007-2008 (the inception of the Great Recession), numerous real estate developers stopped constructing, because the real estate market grounds seemed too shaky at the time. On the other hand, the rare few building developers who forged ahead, are now reaping the benefits of sold-out homes, or complete rentals, as the economy shifts a little more; or foreign buyers flood the Miami market.

Jason Hartman is a walking encyclopedia for commercial investing. He’s taken a bold approach to investing also. Though, it’s his savvy use of resources and common-sense that has allowed he and other successful investors to navigate rough seas, until a calm has arrived – at long last.

See, everyone needs a place to live – even within a recession. There are, however, properties that appeal to some groups even more when times get tough. And as everyone goes through their own life cycles, there will always be a demand for affordable housing. During the recession, multifamily or multiplex homes saw increased occupancy.

Why?

Multi-generations, roommates, college mates, and couples stuck together to pool resources in order to keep a roof over their heads. Having said all this, the take home message is basically this: If you have fears about whether to invest or not, there are key strategies to lower the risks, and increase tenancy:

· Buy in a Good Location – this is one of the most longstanding pieces of advice in commercial real estate.

· Secure Affordable Housing – new generations are cycled into the rental market every few years, as current ones move on into ownership. Manage the cycles, by targeting Gen Y at present, who have a keen desire for affordable housing.

· Tap Into Untapped Markets – this could be mobile home parks, plexes that are close to the military, storage facilities, and other forms of under-advertised markets.

This advice is especially helpful if your home equity, 401 (k), or life savings will ride on whether the investment is successful or not. However, some of the most successful investors, such as Warren Buffet, encourages calculated risk. These calculations are based on research, the property performance background over the space of at least a decade, and more. For properties that have performed poorly, there are opportunities to fix these up, if, and only if, the location can salvage the property. (Top image: Flickr |SmithGreg)

The Commercial Investing Center Team


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