Commercial REOs, Short Sales, and Loan modifications should be the next wave comming on the horizon.....
Think BIG....really BIG!
The commercial mortgage market is over 2 trillion dollars and 40% of that becomes due between 2010 and 2012. This amount dwarfs the impact felt in subprime residential notes.
So will we repeat what we saw over the past 3 years with subprime? Will there be new programs to allow these holders to refinance out of comming due notes, loan modifies, other government intervention? Simply put....NOBODY can predict with 100% accuracy, period.
So what to do now?
Answer.....get ready. Align your financing so you can move on opportunites when presented. This will be drastically different than the residential avenues traveled. Those with access to all cash deals (through partnerships, joint ventures, etc.) and a keen eye for instinsic value will reap once in a generation returns from income producing commercial real estate.
Make sure you have your team ready........
You MUST be able to have contacts beyond the local agent with MLS access.....in a nutshell, you will NEVER get the best deals if this is all you have. Shop around and ask questions. Nobody is going to knock on your door and tell you they have income commercial real estate at 15 to 20 cents on the dollar!
So...in summary....
WAKE UP!! and get ready to ride the Wave of a Lifetime!!