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Get Your Money Up!
By Rodney Neely
Real Estate Contributor
The world as we know it is changing and
changing fast. The boom and bust of the banking and real
estate economy has come and gone. The recovery is in full
swing throughout the country with those who were frugal and
risk averse during the past five or six years sitting in the
cat-bird seat, mostly thanks to the leadership of President
Obama.
Cash is truly king right now and the major
players in real estate know it. Currently in New York the
titans of the industry are picking the bones of the
mid-level players who over-extended themselves or took
calculated, but misguided risks.
A lot of unfinished development projects,
over-leveraged investments in office and multifamily, also
commercial mortgage-backed securities holders, are all
sucking wind financially. These tragic stories are
opportunities for others to acquire assets for 40 and 50
cents on the dollar. For them, now is the time that
billionaires are made, for us locally, not so much...
Around here we are experiencing a similar,
yet much more subdued environment. The carcasses of our
investors litter the landscape, but there are very few
predators to feast on the remains. It is easier to hit the
lottery than to get a large commercial loan from a local
bank without a 40 or 50 percent down payment for the loan.
Although I understand the reluctance to
extend credit, those who do will be the banks that lead the
revolutionary economic recovery of northwest Ohio and the
Midwest in general. Until then it’s going to be necessary
that we think outside of the banking box.
For us, now is the time that millionaires are
made. It starts with your sphere of influence – think of
everyone you know, call them, ask them if they would like to
be a part of a million dollar partnership, and then get to
work. Create your investment club by pooling your cash and
savings for a revenue-producing real estate investment.
Apartments, retail, industrial, or whatever, but find a deal
that works for your group.
Remember to use qualified professional
support to underwrite your deal, but get as much free
assistance as possible before you begin to spend. No matter
what you decide to do, do something. Create a team of
complementary skill-sets, develop a business plan, pool your
capital, then invest.
Every ethnic group on the face of the planet
works collaboratively to achieve wealth and contrary to the
popular belief, so do African-Americans although not nearly
enough.
In my opinion, the smartest and easiest way
to get in the game is through the land contract purchase
method. Those readers who have followed my articles know
that I have laid out the step by step methods to buy this
way and to capitalize on a distressed sale situation.
Be cautious, diligent and very critical when
evaluating each investment opportunity. Get in your car and
drive the areas where you want to own property. In
apartments, look for landlords who are offering very low
discounts for occupancy. He might be a seller. In retail,
look for small strip centers that are half empty. He is
probably a seller. Try not to get discouraged if it doesn't
happen overnight. It never does.
Hey, what are you waiting for?
Pick up the phone call everyone right now.
Just get started!
Always remember that in life, success is the
greatest revenge...
Rodney Neely, real estate contributor, may be
reached at
rodney@q3develoment.com
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