What Am I Seeing? – Part 2

Dear Investor,

Occasionally, I have a conversation like this with a real estate investor. They express regret over the fact that they can’t turn back time and take advantage of opportunities that no longer exist. Well, good opportunities do still exist, but they are hard to find (see the email I sent out last week on how to channel your inner Cher!). If you haven’t clicked on the links in that email, please do.

Those who regret not taking advantage of a good opportunity when it came along, such as an opportunity that involved taking on conservative, long-term, low-interest-rate debt, make up a much smaller group than those who regret getting involved in deals or partnerships too quickly or too deeply, as I shared in my previous email. If you have regrets, despair not. Real estate is a cycle, and there will come a time when interest rates are once again lower. I’m not predicting that they will go back to being below 4% for a very long time, if ever, but given the erratic and spasmodic housing policies and spending habits and the uncertainty coming from the Federal Reserve Bank (which is neither federal nor has reserves), who knows what the future holds.

If you find yourself needing to turn back the hands of time to get in on a deal with low interest rates, then check out the email I sent last week. Otherwise, do not despair. Just think about creative ways to structure deals that have the same kinds of rates and terms. If you are looking for a way to learn more about that, let me know.