We maximize the value in your industrial real estate transactions
In our last post we re-introduced our series on the 3 Phases of the Wealth Cycle, beginning with wealth creation. This is the time in our investing lives that we work hard to generate investment capital and tend to take bigger risks to create the critical mass of capital required to make big gains.
At some point in our lives we decide what we want to be when we grow up. Some of us are fortunate enough to pick right the first time, while others hit dead-ends but keep trying until they find the right path. Once found, the real work begins, and we set out to achieve our goals, both personal and financial. When those two line up, good things can happen and successful careers are launched.
As we suspected would be the case, the interest rate on the popular SBA 504 mortgage fell sharply for the second straight month.
Throughout this past year we published numerous warnings of a potential correction in industrial property values. Our fear was based on the logical conclusion that when the cost of capital to acquire assets more than doubles in less than a year, prices would come down to compensate for the increase. At least that is what history told us to expect. What we got was something quite different and very interesting…
Reading economic tea leaves has never been an exact science, but it has become even more opaque of late.