Now Is A Great Time To Get Into Investment Real Estate In Santa Ana, CA
Interest rates and real estate prices have not been this low together in over 50 years. After the zillion megaton explosion of the real estate bubble, prices have dropped to all time lows and bargains abound. It does not take a genius to see that right now cash is king and if you have a few bucks set aside you need to look into investment real estate. Bargains are all around, but be careful, some of them have gotten pretty beat up during the foreclosure process. This crisis has been going on for several years now and some of the properties have been vacant for way too long.
There does not seem to be any relief in sight for commercial real estate investors. The short term loans they bought their properties with a few years ago are coming due at a time when the property values have plummeted. I wouldn’t want to be in their shoes as tenants walk out on leases as their businesses collapse. Landlords should become proactive communicating with their tenants who are having a hard time making their lease payments right now. It would be better to lower their monthly payments now than to see them walk away. A few years ago property owners could just evict delinquent tenants and easily find new tenants who could pay more. Things have changed dramatically lately as all kinds of retail shops, restaurants, auto body shops and other small and medium size business fail, lease ready investment real estate is standing empty.
For their own good, landlords might need to throw their sinking business tenants a lifeline by reducing their lease payments, or even deferring them for awhile. Many of these hard working business people are facing financial ruin if the don’t get some relief and free up cash flow. The landlord will benefit because he will still have a tenant who can pay rent when the economy picks up. Things don’t look good right now but the economy always eventually picks up. This may be a longer lasting recession than we have experienced in a long time but it will end some day. When the economy and the failing businesses do recover the landlord will have looked like an angel to the business, eliciting loyalty, plus it will have made sound business sense.
If these commercial landlords can’t work out an alternate plan with their tenants the prognosis is grim. When they lose that monthly lease payment it can eat a hole in the deepest pocketbooks pretty quickly. This very scenario is expected to create havoc in the commercial real estate sector between now and 2013.
Because of all this, I am looking at commercial real estate myself for the first time in years. You can pick up an REO (bank owned) property for very little. After you have secured one of these bargain commercial properties you should be able to find tenants who can pay enough rent to create a nice Positive Cash Flow.
Commercial Real Estate is about to go through a worse foreclosure crisis that residential Real Estate has. To find out how you can profit from this crisis go to www.CostaMesaForeclosures.org.
