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Updated over 7 years ago on . Most recent reply

User Stats

120
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58
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Scott Bowles
  • Real Estate Investor
  • West Linn, OR
58
Votes |
120
Posts

How to handle a market correction

Scott Bowles
  • Real Estate Investor
  • West Linn, OR
Posted

Does anyone have experience holding small (less then 25 units) commercial multi unit deals through market corrections like the 05-08 timeframe? Would anyone recommend leveraging now into a small commercial deal like this or advise to wait for a market correction before taking any sort of leveraging action? Did anyone see the 05-08 positively affect the buyers market for commercial deals? Market rates for commercial deals locally at the moment are at cap rates between 5-7% and I am wondering if a market correction would likely improve those numbers for a buyer. 

Most Popular Reply

Account Closed
  • minneapolis, MN
92
Votes |
79
Posts
Account Closed
  • minneapolis, MN
Replied

I really don't think we will have another crash like we did in 2008. That was not a part of the normal real estate up-down cycle. That crash was caused by a credit bubble, which created a housing bubble. The credit bubble popped and you know the rest. My point is that a lot of measures have been put in place to prevent this sort of thing in the future. Without a doubt, it is harder to get bank money now than it was in 2005.

Source: I watched "The Big Short"

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