Capitalizing in an uncertain market is the key to our success in Creative commercial real estate. One of the best strategies for creating wealth that I have come across in my career in commercial real estate is to force appreciation.
This is the lead principle that has driven my success in this industry while I have watched thousands come and go. Some came for quick profits and left when they thought the markets had changed and moved on to other investments, but most took a beating because they always looked to external forces to generate their returns. When things shifted, as they always will, they got trapped in unprofitable deals that were over valued and over leveraged.
The billions of dollars that is about to be lost in the real estate markets over the course of the next 18 to 24 months will cause unrecoverable damage to many investors, financiers and lending institutions. Some know this is coming, but most are blind to the reality that we are in the eye of the storm. Temporary rate cuts by the Federal Reserve are on the way and they will continue for a period of time, but this is a band-aid on a severed limb, too little, too late. The bleeding has begun and for many this will be fatal.
Now before you think I am all doom and gloom, I want you to understand that nothing could be further from the truth. We are a tremendously resilient nation and our creativity and work ethic are second to none no matter what you may be reading or seeing on your television.
As Creative Commercial real estate investors, we are one of the primary groups that will be there to take the mess and turn it around by creating opportunity, Jobs, bringing stability, rebuilding confidence and in the process gaining tremendous wealth for ourselves and those we work with. We will do this just like we did after the Energy Crisis in the 1970′s, the Savings and Loan implosion of the 1980′s, the Internet Tech Bubble of the 1990′s, the devastation of the terror attacks of 9/11 or what will come after this real estate and currency crisis
You see, I believe in taking charge and making things come together. This puts the responsibility for success or failure squarely on our shoulders. While many may fear this business model, if you will stare down your initial fears without blinking, you will be handsomely rewarded with the confidence of knowing that no matter what you face, you can handle the challenge, create the wealth and freedom you deserve while others are hitting the panic button or being swept away with the tide of the storm.
Forcing appreciation is just that, taking charge of what is in front of you and making positive results occur through our direct intervention. To explain, FORCING APPRECIATION is the concept of identifying a property or a piece of land that is at present in one of seven categories that allow us to cause an immediate change in value to occur.
When we identify which of the Seven Categories the potential investment property we are evaluating falls into we can choose specific tools and strategies that will allow us to succeed when others are failing.
We will break down each of these strategies on an individual basis so we can begin to identify what it will take to pursue each strategy. (To Be Continued…)