Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago on . Most recent reply

How to handle a market correction
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
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"