Is a Recession Ahead?

It is an interesting time with our economy right now because we're going through a bit of a transition. At least, according to many experts who say that we're in a period of transition or perhaps just ahead of a period of contraction.  

 I believe when we see these stock market drops, these are indicators that we could be going into a different economic time, similar, maybe not to the extent of 2008, but a more recessionary environment. It is my belief, not only as a commercial real estate agent and as a commercial REALTOR®, but also as a real estate investor, that right now is the time when you want to diversify your money out of the stock market and put it into commercial real estate. There are a couple reasons why, especially if you're looking at multifamily real estate because of the cash flow potential. If we have a situation where we keep having stocks that a lot of people believe are overvalued, those stocks in terms of principles and economics would drop at some point, thus, losing value. Now would be the time if you've made a lot of money on those stocks to start pulling those out. Treasuries are a good place to putsome money to safeguard it. If you can pull some money out of stocks and put some of that money into commercial real estate, especially, cash flowing real estate, that's going to pay you and hopefully is going to appreciate in value over time. That is a very solid solution.

Now I truly believe that is a valid argument and a valid strategy, so if you need help finding the right investment vehicle in terms of commercial real estate, something that's going to return your investment similar to a stock portfolio of six, seven, eight percent, per year, contact me and we can find good properties that are cash flowing. Email us at chris@stokesherzog.com or give us a call at (715) 450-4990 to get started.

Stokes Herzog Realty LLC is Eau Claire, Wisconsin’s commercial real estate brokerage firm. Our team of professionals represent tenants, landlords, buyers and sellers in every facet of commercial real estate. Throughout the State of Wisconsin, Stokes Herzog Realty LLC specializes in tenant representation, property acquisition, surplus disposition, leasing services and investment sales. We look forward to working with you!

 

 

chris herzog