In the past 5 months we’ve bought the following four properties:
Baptist 119 MOB
Former Goody’s Galleria
2,000 SF Downtown Homewood
What do they have in common? They would have been impossible to purchase four years ago when the market was on fire. And had we been able to purchase them, we would have paid much more than what they ultimately cost today. Commercial real estate can be a long cycle, 7-18yrs! (2.5 MB pdf)
So the first thing you have to know is where you are in that cycle. There is a verse in the Old Testament, I Chronicles 12:32, “… the men of Issachar, who understood the times and knew what Israel should do…” These guys not only understood what was good for Israel, but they understood the times they lived in and how that effected what was ‘good’ for their country.
Context is the starting point. Given that, are you better off buying assets today or three years ago? The answer is obvious, yet fear reigns with buyers, bankers and the media.
Warren Buffett says “Cash combined with courage in a crisis is priceless” and that is how we see ourselves, ready, willing, and able to buy very good real estate at very good prices.
If you hear of a good deal, please send it our way. If you are a broker and you bring us an “off-market” or pocket listing, you keep all of the fee.