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Investor's Solutions

piggy bank

Banks are paying so little interest that it is almost not worth putting your money into a CD. And, given the number of bank failures, it becomes even more difficult to justify a bank CD as an investment. The only upside of such an investment is that it may be safer than the Wall St. Casino. But then so is a piggy bank.

"We are confronted with insurmountable opportunities!" – Pogo (Walt Kelly)

You may find it hard to believe that we are facing a perfect storm of opportunity for investors, but here some facts we believe you may find interesting:

  • $1.4 trillion dollars of commercial real estate loans will come due over the next five years.
  • A very high percentage of those properties are upside down.
  • Even for the properties that are not upside down, banks are being very selective about loans (if they are lending at all).

When these loans become due, the two options the owner has are either:

  1. refinance, or
  2. give up the property by sale or foreclosure.

Since banks are not refinancing, investors with proper connections can fill this need and make a respectable return on an investment secured by commercial property.

For the properties that are upside down, investors can realize a healthy retun by picking up these properties at below historical replacement costs, or by financing the investors who do.

By investing in these opportunities, you help solve the problems of the owners and the banks, as well as solving your own problem of getting a decent return in a secure investment.

For more information, contact us today.

 

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