Serving Investors Since 2007
Where are the best deals? What are the challenges? What’s it going to take to get your hands on the most profitable opportunities?
The Search For Inventory
One of the top challenges for investors this year is going to be finding deals. At least deals where the numbers really work, the margins are good and you aren’t just speculating.
There is plenty of property up for sale. There are going to be many motivated sellers and agents. Yet, many of them are going to have to get more realistic.
Where The Best Deals Are
While many retail sellers and their agents are cutting their listing prices, they still aren’t pricing in line with where the market is, and more importantly, where they need to be for investors.
Foreign investors and the biggest pension funds may be okay with zero yields. That’s probably not going to cut it for you though.
That leaves bulk deals. Whether that is pools of notes, entire condo buildings, or portfolios of properties from other investors, bulk acquisitions are where the profits and lower risk deals are.
What It Takes To Get Them
When we’re talking about bulk deals, we’re talking millions of dollars. Sometimes a lot more than that. That takes capital. For most investors this also means some form of leverage. Even if you have all the cash, sharing that risk and bringing in others who can help in various ways is just smart.
Cash isn’t the only thing you need. There are few people with these portfolios. That means you need connections too. You’ve got to have the relationships, or someone with them to get access.
Even then, you need experience and a solid resume. Sellers have to be even more careful who they are selling to today. You also need to know how to handle portfolios of this size. Again, all leading back to the need for and advantages of having partners.
Who will you partner with this year?
Find out more about investing in secured debt and real estate, go to NNG Capital Fund