Bailout Survival Strategies and Commercial Real Estate
Invest in or keep your commercial real estate, but adjust your lease rates to keep your tenants intact. I’ve written a past article on how even in a declining value market, income-producing real estate protects your capital better than most other investment vehicles.
I have a couple of videos to share with you in this post that should get you thinking about your near-term future. First though, I want to you get a “visual” of what $1 Trillion Dollars looks like. For those of you who are numerically inclined that number is $1,000,000,000,000.00. Here’s the link to give you a look at how that number literally stacks up in $100 Dollar Bills: http://www.pagetutor.com/trillion/index.html.
Now to put that into perspective with regard to our economy, take a look at this video clip of a recent Glen Beck show where he graphs the amount of U. S. Deb over the past 80 years:
Finally, let’s get a look at Jim Cramer as he comments on recent proposals to “fix” our economy from Washington: http://gatewaypundit.blogspot.com/2009/03/cnbcs-cramer-on-obama-its-amateur-hour.html.
To summarize all of this for the time challenged: The US has piled on an unprecedented amount of debt in the form of paper money with NO visible stimulus effect on the economy, as measured by both Wall Street and Main Street activity. The likely result of this in the near term future is the devaluation of the U.S. Dollar relative to other currencies and run-away hyper-inflation. And let’s not forget the proposed irresponsible massive increases in taxes that will further reduce output.
So what can you do about it? Here is my “short list” of thoughts that I personally will be taking some action on in the coming months:
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ABOUT THE AUTHOR
Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: “The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.”