If you watch enough television, you may fall prey to the cycle of panic that has gripped the herd-mentality thinkers wringing their hands over the current economic condition. It's easy to do, we're all guilty of negative thoughts and self-doubt at times. The cure to this condition is easier than you think, and its nothing you haven't heard before. You have to focus on the positives!
First of all, there are great opportunities out there for buyers, and the local banks do have money to lend, especially if the properties are in the area and will bring new business to the community. If you're a wise investor and you have good credit, this is the time to add to your portfolio. Returns over the next few years for buyers that are positioned to take advantage of this market will be huge!
CAP rates are up! NNN investment properties being sold as sale-lease-backs by strong companies looking to raise capital are nearing 10% for the first time in many years. A sale-lease back is an excellent way for a company to realize the full market value of their property and inject cash into their business. This is the perfect time for a successful company to capture market share when others are leaving their industry, and a sale-leaseback is the fastest, easiest way to finance growth.
It's also a great time to get a great new lease, as property owners attempt to solidify their investment properties by offering aggressive lease terms to attract new tenants and keep existing ones. Half-price or even free rent and other tenant incentives are the norm right now, so if you want to save a lot of money, start negotiating now!
Any agent looking to capture market share will have a field day as the weaker agents drop out of the race, leaving the top producers alone to lead the market back to normal. For those of us lucky enough to benefit from the expertise of an experienced broker that has been through these cycles, this is the time to get into position to own the market!
So, be positive! Be the agent for change that calls on buyers and shows the wisdon of investing now! Good real estate investments are still the top performing assets in the country, and over the next few years they will prove to be the foundation of recovery for the troubled economy.
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