I met with a very affluent international investor a few years ago that owns about 28 hotels around the world. We were talking about a few of the projects we were working on at the moment (Which HE LOVED the top Palm Beach architects!!!) and he was very impressed with our tactic. What I found most interesting was his confession later in our conversation that he too used this same tactic to purchase his last 9 hotels.
So here is a quick tip on the best way to buy commercial real estate right now! Buy a note that is in default: Any real investor and or investment group in Today’s economy has the opportunity to work with distressed first position note holders with non-performing asset(s). TODAY you can negotiate very solid deals based on true fundamentals (CASH FLOW). YES,ONE Real Estate Today OF THE BEST WAYS TO BUY Commercial! Articles both traditional and private lenders are starting to open up and entertain discounted offers to help offset some of their book losses due to the down market and lack of retail funding.
The time to buy commercial real estate is now! Let me give you some perspective…One of my partners sold a hotel in the Orlando area about 15 years ago for $15M. The new owner who managed this asset was offered $150M for it about 5 years ago. Instead of cashing out, he took out a big loan to renovate the building and well… the rest is history. Another contact of ours just purchased the note in default for $5M. Not convinced?This international investor shared with me that he just purchased a note in default for $1.8M on a building that based on income is worth $8.5M. Still not convinced?
One of the projects we completed a few years ago is a note in default for less than $5M with a value of over $12M
in today’s market.Here are your options:
- You can get out there and make offers on non-performing commercial assets. Negotiate your deals and partner with
equity investors to take down these great opportunities.
2.You can join investment groups (like ours) with a solid track record and become one of the passive investors. Many
everyday investors are taking their retirement accounts out of the stock market and putting their money to work with tangible commercial cash flow real estate. We have many clients taking their extra funds out of their 1.25% Money Market Accounts or CD Accounts and putting their money to work right now.
