Robb Capital (c) Real CRE Marketing Loan
In April, shortly after the pandemic began to damage the lives of Americans, I wrote an article asking investors to go ahead with the acquisition of a property, and since then I have made a remarkable change in my opinion . Given the current state of the economy and the housing market, my plan is nothing less than avoiding any new genuine real estate investment business and preparing for a significant buying opportunity in six to twelve months.
In April and May of this year, when the effects of the pandemic began to be felt, almost a portion of the advertising companies had not paid the rent, which in September led to the definitive closure of 98,000 advertising establishments. lenders to such an extent that they no longer had overhead money, such as loan repayments. The inability of homeowners to pay has acted as a catalyst to tighten advertising between homeowners and banks. As a result, many local and national banks have not won loan bills in real estate advertising.
To make matters worse, the resulting chaos has called into question the validity of leases. Legal proceedings have been initiated in countless cases to renegotiate the terms. Meanwhile, landlords are suffering to locate tenants to fill vacant sets at the previous rental price. In case they even evict existing tenants. That says nothing about the entities that filed for bankruptcy, some of which were the largest retail giants in the country, that had been commodities for our corporate for decades.
The Fed put a protective net in place in April to prevent widespread failure by buying corporate bonds on the secondary market. In essence, it adjusts the total framework of our economic system, in the end making our society dependent on the power plant. We are in an unprecedented time, and without a frame of reference or a point in history that we can as a model, we are facing an era of uncertainty.
In addition, as I write this article, nearly 60 million more people have been implemented for unemployment since mid-March. This is not even the case with employers in the United States who have the capacity and have taken the opportunity to renegotiate the wages of existing workers. Worse, in correlation with unemployment, business closures, and an overall decline in wages for a giant workforce component, there is likely to be a dramatic drop in overall spending. This economic uncertainty is likely to continue to sow concern in most of the population, leading to dramatic decline and additional decline in the economy.
If you are an investor who is thinking of taking the step on a property, my recommendation would be to wait for now, but be able to seize the opportunity in the near future. For my part, I’m on the edge of my seat waiting for a genuine real estate investment opportunity so best that it only comes up once in a lifetime.
The data provided here are not investment recommendation, tax or monetary recommendation. Consult an authorized professional to recommend your express situation.
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Robb Capital (c) CRE Loan Real Estate Marketing. Read Brian H. ‘s full control profile. Rob here.
Robb Capital (c) CRE Loan Real Estate Marketing. Read Brian H. ‘s full control profile. Rob here.