Monday, February 9, 2009

Real Estate Bargains

By Nick Porcell

“There’s money on the sidelines waiting to go, not just small-time investors like us, but some big money,” said Simon, executive vice president and managing partner of Bradford Commercial Realty Corp. “But in the ‘80’s if you had the cash for a sizable down payment, you could pick up properties. Today, with the financial situation in banks, it’s not just about waiting for investors to come back; it’s also waiting for the financial institutions to want to do business again.”

Simon said it will take a down payment in the area of 40 percent to play in today’s market – but that is still not a guarantee.

“It’s an extremely interesting time. In my humble opinion, today seems like the problems that have caused the banking industry to be so overly cautious has come from Wall Street rather from the banking industry itself. It’s a different cause than the ‘80’s, but it has a similar effect.”

As for current commercial real estate seeing deep discounts similar to the ‘80s, Simon said a lot remains to be seen.

Read more

No comments:

Post a Comment