3 Reasons: Why You Should Buy Commercial Real Estate RIGHT NOW

Recession, downturn, whatever you call it, now is a great time to buy commercial real estate.

Before I forget…if we can help you by lease or sell commercial real estate, contact me right now. Commercial real estate is all we do and we love talking about deals.

So, 3 Reasons you need to buy commercial real estate right now

1.     It’s a safe harbor during uncertain times in the stock market. We’ve seen a correction of more than 20% in just the last few weeks. And I believe we’re not done seeing losses in equities. I don’t think we’ve seen the bottom. Yes, there is always risk in any investment, but I believe commercial real estate provides an opportunity right now for future returns. Here’s the deal, banks will lend you money to buy commercial real estate, but they won’t lend you money to buy their own stock. Why do you think that is?

2.     Commercial Real Estate Cash flows. It pays you every single month. It’s not like a house that just costs you money and you see no return. Yes, I know some people will say the house is appreciating over time, but not always, and certainly not anymore this year. Why do you think banks and other lenders are keen to lend on commercial real estate? Because it pays the owner every month, and if wort comes to worst and they have to take it back, it’s easy to resell because of that cash flow potential to investors. Remember, your tenant not you is paying the mortgage off. And on top of that, you’re more than likely seeing a cash on cash return for your trouble. That’s how you get wealthy.

3.     More willing sellers right now. There are a lot of people and companies who own commercial real estate looking to cash in their chips and move on. Whether it’s because they need to raise capital to cover losses in stocks, their businesses are in trouble or they’re just ready to retire, more owners are looking to trade their assets for cash. And generally, I’m speaking generally here, prices do tend to come down during a downturn, rather than at the peak. In fact, some saavy investors have been stocking their real estate acquisition accounts for this very moment in anticipation of purchasing new properties. So make an offer. Who knows, it might be the magic number to get a deal done.

There you have it, 3 great reasons to buy commercial real estate right now. Now if you’re serious about buying or selling commercial real estate, let’s jump on the phone or a zoom and talk about what you’re looking for and how Stokes Herzog Realty can help you. And remember, we’re always open at stokes Herzog realty dot com.

I’m Chris Herzog, thanks for joining us!