Distressed Real Estate Presents Investment Opportunity
In an October 24 article in the Indianapolis Business Journal, Cory Schouten reports on recent developments in the commercial real estate markets indicating that capital is coming in to large investment portfolios, preparing for the moment when the markets hit bottom.
Apparently this moment has yet to be reached, however. The problem is that the largest holders of commercial loans, the largest U.S. banks, have yet to fully absorb the decline in asset values of the properties in their lending portfolios. Once this occurs, valuations will drop even further – considerably further – and one of the most extraordinary equity investment opportunities in history should follow.
Real Estate Investment Trusts will benefit tremendously, as will smaller and closely held investment companies. This could be an ideal time to form an investment vehicle to prepare for the investments that will be available in 2010-2012 in a very depressed real estate market.
Contact your financial and legal advisors to help you plan an investment strategy for opportunities as they emerge in commercial and residential real estate. Contact attorney Andrew J Thompson for more information and planning advice on legal strategies for real estate investments.
