Commercial Real Estate Investing: Vulture InvestingBy
Greetings from Sacramento, CA!
I am up here visiting my friends for a mastermind with a very distinguished crowd. I am not sure why I was invited but…I am glad I was and I hope they invite me again. Needless to say, I learned a lot and realized I have a lot more to learn.
That is the beauty of meeting people who are doing things on a much grander scale. Your mind starts to stretch and you get different perspectives. Although the members of the group may be doing business differently, our value system and our deep convictions are the same….which makes this mastermind go beyond the term “mastermind”…..but I have not figured out a term for this type of “mastermind” yet….but I will ….but I digress.
You have heard or read that “The other shoe is about to drop for commercial real estate” right? This is so true, on a broad scale…but I wish the media could get creative and maybe do more research on what is really happening. Yes…commercial real estate is sinking. Yes….investors are going belly up. Yes….financing commercial real estate is difficult if not impossible. BUT….all these issues equate to amazing opportunity. But…one must focus on the opportunity.
Like I have said in the past, a lot of money will be made in this season by savvy investors. These savvy investors are “cherry picking” the surplus of assets sitting on the market waiting for a buyer. Folks….the surplus is getting larger. As the “average” investor runs to the hills, the shrewd investor is circling the skies waiting to softly land to take it’s share of “road kill.”
The “vulture investor” is looking for motivated sellers. Sellers that have balloon loans coming up and cannot refinance. Developers who go caught in a surplus of residential homes and need to liquidate their “other” assets to stay afloat. Sellers who are losing tenants and cannot compete with lower lease rates because they bought at the top of the market. An on and on…..
But I need to make something clear. I have been on the other side of the vulture….needing to sell. Thank God for the vulture investor. Yes…I lost money….but I could have lost a lot more if I was not rescued.
Time for you to learn how to be a vulture investor?
1) get educated. The window is small…so the time is now
2) hang out with other “successful” commercial real estate investors. The key word here is “successful”
3) Stop thinking you can’t do it
Until next time……rob