Weekly News & Capital Markets Perspective

This week’s perspective is provided by Jim O’Connell:

Jim O'Connell

ONCE IN A LIFETIME OPPORTUNITY?

For all of you stable, low risk investment property guys this piece isn’t really something for you.  These thoughts are for those of you who have been waiting for the opportunity to buy all that commercial real estate, that has its fair share of risk, at prices that are falling into the “no brainer” category.

This week our team worked on three more properties that were offered and sold via the on-line auction process.  And although I don’t know if the vehicle really makes that much difference, the point is that distressed real estate is finally being transacted at increasing volumes.  And I’m not talking about the really broken stuff that needs to be torn down and forgotten, I’m talking about decent and even good product that has fallen into a crack somehow and needs to be sold for one reason or another to give it new life.  

I first saw this back in the early 90’s when the RTC got swamped and couldn’t figure out quickly enough how to deal with of all those troubled assets coming through the pipeline.  So auctions, bundled note sales and a few other processes were invented or employed to get it all done.  Well, it looks like déjà vu all over again.  Here we are with real estate that has issues selling for numbers that are almost unbelievable.  I can’t tell you how many times I’ve already heard the phrase from bystander investors, “if I knew it was going to sell that cheap, I would have bought it”.

Well folks, if you’ve been waiting for that next time of great opportunity, I think we’re here.  Yes, there is risk.  Yes, there are a ton of what ifs that should be answered.  But don’t you remember that it was like that the last time and the time before that.  So if you’re looking for that next great flash of opportunity, quit finding excuses of why not and go make a deal.  Use that expertise and put it to work so that in a few months or a year from now you’re not saying, “I should have done that deal.”  Because there are people who are doing them and I’ll bet they’re right.

And that’s what I think.

What do you think?  Click here to email me.

ARticles of Interest___________________________

Office, Apartment Sectors Expected to Outperform
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The ‘Fiscal Cliff’ and Other Reasons Companies Aren’t Hiring More Workers
The job market has slowly been improving, but anyone who has looked for a job lately knows that it’s still far from easy to land a position.  Continue reading →

On The Road to The Endgame: The Farcical Cliff 
Kick the can down the road. That has been the core philosophy of policy makers and financial market participants since the outbreak of the financial crisis several years ago. Never mind that we have mounting systemic problems infecting the economy and financial markets that left unaddressed could completely destroy our long-term prosperity. As long as we have the means to repeatedly ignore the problems we are facing…  Continue reading →

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