Profits Forthcoming for Commercial Real Estate?

Steve Schaefer of Forbes, seems to think so. He explains that most people see real estate and homes as the same thing. The reality is, that the commercial market is huge, and tends to lag the rest of the economy.

During the housing bubble, the focus was on building new homes, and not enough attention was paid to rental or commercial property.

To Raymond James’ Buck Horne, it comes back to the overbuilding of single-family homes during the housing bubble, which in turn led to underbuilding in multi-family.

It’s interesting to see the rental market of today. Due to tight lending restrictions, many would-be homeowners are now renting, thus increasing the stock of quality renters, and giving landlords more options, opportunities, and profits to be made in the near future.

You can read the rest of this article here.

2 thoughts on “Profits Forthcoming for Commercial Real Estate?

  1. Clearly buying low and selling high is an excellent strategy when it comes to making profit in real estate investments. The hard part is the “selling high” part the way the market is right now. Clearly investment diversification is essential right now, and you definitely don’t want to put all your eggs in one basket. Even today, do you still believe profits are forthcoming or has that changed?

    • Profits in real estate are always made when you buy, not when you sell. The market will only pay so much for a property, so you have to buy it for less in order to turn a profit. That’s the essence of making money in real estate.

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