Fa la la, Recession.
You’ve heard me say it time and time again; we are in the midst of a recession and while our friends in the housing markets are struggling to stay afloat by planning on purchasing properties and holding until the market recovers (eventually). I’ve seen the coming of the recession and if you have been following me for a while, you should have enough knowledge to really take advantage of the opportunities that are going to be coming up. The season is upon us and I’m your Real Estate Santa.
First things first, understand that purchasing land and developing it will always yield higher returns. In any scenario, the market varies depending on whether or not we are in an inflation period or a recession. This will affect the price of any existing projects you’re looking to buy which is why again, I put a major emphasis on building out your own developments. Why? In a world where you have no control over the market average of properties, you can have full control over the underwriting, construction cost, and even the ROI when dealing with your own personalized development.
They don’t call me Seven Figure Santa for nothing. In fact, no one does but they really should. Every deal that I’ve done has allowed me to make seven-figure exits every time. This profit margin does vary, however. In order to make larger returns, the deal itself must be large, but that doesn’t mean you can’t double, triple or even at times, QUADRUPLE your money with flex spaces under my guidance.
Should we be afraid of the big bad recession?
Recessions are a scary subject to touch on, whether it be with buyers, sellers, or investors. But this is the bottom line: we’re all going to go through it, it’s simply a part of the inevitable real estate economic cycle. However, whether or not you are letting it impact you, is completely up to you. Will you take advantage of the recession, or weather down your business and take a hit?
I’ll go ahead and reiterate once more: flex space real estate is a recession-proof asset class. In a market that’s crashing, you’ll have large corporate and private companies who are looking to downsize in an attempt to stay afloat with less business flow and looking for office warehouses with flexible leases. Guess who they come to? That’s right, me.
Want to hear something crazy?
Right now, we have $80 million in the pipeline to develop flex spaces DURING THIS RECESSION. The returns are insanely high and we’re getting leased out even before construction is complete. It’s a no brainer to build these types of Flex Space Developments when you look at the returns. We’ve historically gotten 2-3x returns on every single product over the span of 5 years and with these current interest rates, we’re looking at less than a .1% decrease in profit. What more could you ask for?
How is this possible?
Because I never stop building, even during a recession, companies are looking for clients who are looking to develop. Because of the decrease in development from lack of knowledge and fear of high interest rates, most people stop developing during a recession which puts me at a huge advantage, able to negotiate larger discounts on labor and material.
Guys, I’m not an expert at everything. If you were to ask me what stocks to invest in or cryptocurrencies to invest in, I would be the wrong person to ask but I am the leading authority on all things involving industrial real estate investing. If you are still needing guidance or still not confident on what your next step looks like, you need to ask yourself if you still want to be an elf on the assembly line or if you want to become your own Seven Figure Santa, going into 2023.
Check out Flex Space Untapped for more information on how to make money in 2023 rather than lose it. .
Let’s make this Recession’s Greetings, a memorable one.
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