While some investors are pressing pause until the economy stabilizes and interest rates fall, other keen investors are seeing the opportunities that lay just beyond the surface of all of the fear and hesitation. What are those opportunities? In a similar concept to Cap Rate Compression in Commercial Real Estate (click to learn more), business sale prices are at a critical low point – meaning that as soon as interest rates go down, commercial real estate prices will skyrocket, and so will business sales competition. That is why now is the last opportunity to level up and gain business and real estate assets that will rapidly appreciate in the near future.
Why Are Investors Hesitant to Buy in the Current Market?
Still unsure? Let’s go more in depth about some common fears and misconceptions regarding today’s market:
Myth#1: Prices and Competition Are Too High
Actually, we are in a Buyer’s Market! Many sellers, whether they know it or not, have been quoting prices that are too high for today’s market conditions. If the sale price is not adjusted appropriately, the amount that any lender is willing to provide in financing will be based on a new, current market appraisal – which often reveals a true, lower market value.
Myth #2: The Cost of Money is High, and a Recession May Be Near
Don’t miss out on an opportunity just because you’re waiting for a better rate. Whereas you might pay a higher interest rate temporarily, with a stabilized property, you can quickly refinance into a fixed lower rate when conditions improve. Then, you not only paid a once-in-a-lifetime lower price for that property – but you also get to take advantage of the rates that everyone was “staying patient for.”
Myth #3: Banks Are Failing
Yes, banks are pulling their purse strings closed BUT there is plenty of money, and we’re not just referring to Hard Money. There is plenty of conventional loan capital from aggressive firms – including credit unions, private funds, CMBS, private equity firms, family funds and more. With our own bridge-money funds and access to our 300+ affiliate funds, we can fund $500K to $500M, all with one application and a complimentary pre-qualification process.
Reexamine Your Past Opportunities to Search for Deals
Do you remember that overpriced building you looked at months ago? Check it again! The price may have adjusted favorably. Or, the buyer who had it under contract might have backed out. Let us get you prequalified so you’ll be prepared to make an offer when the right move lines up.
Try our easy-to-use Loan Finder App to discover your options in minutes – no credit checks, no document uploads, no commitment necessary. risk-free with no commitment necessary. We built this tool to show our investment in your success! Let our experts help you strategize for your future, and take a white-glove service approach in making that success happen.
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