Sometimes the real estate market can feel more like navigating a storm than riding a wave.
For those of you who’ve been on this journey, like many of my clients, especially in the traditional real estate syndication sector, you’ve experienced this volatility firsthand over the last few years.
During the pandemic, people were out of work, not paying rent, so property managers were having to go back to the investors and make capital calls, asking for more money to stay afloat without being able to give assurances that the projects would fully recover.
And if you contemplated throwing more money into an uncertain investment, which feels like throwing good money at bad money, you’ve risked having your shares diluted.
Thankfully, the pandemic ended. People went back to work and hopefully back to paying rent, But then interest rates began to soar. This made refinancing, often used as an exit strategy, unfeasible and led to more capital calls and sinking property values.
In certain situations, principals just handed the keys back to the bank. It seems like a never ending cycle. What if I told you there was another way? There’s a different approach to navigating these waters.
One that requires deep understanding of the real estate markets and a different niche strategy to mitigate risk.
That’s the arena we operate in.
If you wanna know more about it, we’d love to share it with you.