CRE Investment Basics - Should You Wait for the Next Real Estate Crash to Make Your Move?

 Posted on December 00, 0000 in Commercial Real Estate

Tariffs, shortages within the construction industry, and the increasing costs associated with purchasing or renting a property point to the possibility of an impending real estate down cycle. It might be tempting to wait out this cycle, in hopes of making it big in commercial real estate (CRE) like many others did during the Great Recession, but is it a sound strategy? The following sections highlight the potential downfalls of holding out until the next market crash, and it explains how you can begin to take immediate steps toward successfully breaking into the CRE investment market.

Waiting to Invest in Commercial Real Estate - Sound Strategy or Major Mistake?

For those who have not yet entered the CRE investing market, waiting may seem like a sound strategy. However, seasoned investors know the truth: breaking into the market takes time. Knowledge must be acquired, and relationships must be built. These resources are all critical to success for investors, and if you wait to break into the market, you may struggle to find the ones that you need the most. Part of that is due to the changes that happen within the market when a crash occurs. Banks and lenders may merge, or they may tighten their lending criteria. Others may disappear entirely, even after approving your loan, leaving you without proper funding. In short, if you want to invest in the commercial real estate market, the time to get started is now.

Making Your First Moves in the CRE Market

Since waiting is not a sound strategy, potential investors are encouraged to obtain seasoned information and guidance as soon as they are ready to start. Find a mentor - someone who already has at least a moderate level of success. Then start building your relationships. Talk to potential banks and lenders, and get to know the movers and shakers in your chosen industry. Just remember to seek out the assistance of a seasoned attorney before moving on your first transaction, as this can significantly improve your ability to yield a healthy return-on-investment.

Contact Our Naperville Commercial Real Estate Lawyers

Able to assist you with everything from negotiations to zoning and land use issues, Lindell & Tessitore, P.C. is one of the most trusted names in Illinois’ commercial real estate industry. Start building or diversifying your portfolio today. Call 630-778-3818 and schedule a personalized consultation with our skilled and competent Naperville commercial real estate attorneys today.

Source:

https://www.forbes.com/sites/forbesrealestatecouncil/2019/03/26/should-investors-wait-for-the-next-real-estate-crash-to-make-a-move/#7ddba9f45319