Investors – Why Commercial Real Estate?

A friend recently asked me if I thought they should get into the stock market. I told them that the lowest point for the stock market in the last 10 years was 7,062.93 in Feb. 2009…a month after the new administration took office. Since then it has run, scrambled and raced as high as 18,312.39 set on May 19, 2015.

Tired Runner

STOCKS: Getting into the market now is a little like asking someone who has just finished a successful marathon run if this is a good time for them to enter a race. Not only do I have concerns about future yields…the stock market has lost a trillion bucks valuation in a single day. I’m just not that kind of gambler!

BONDS: The only guaranteed investment is bonds. I guarantee you will lose buying power. Hard to offset 2.8% inflation with 2.12% yields. I call them “bondies”. Bonds are a great addition to an investment portfolio…but they can’t be your whole portfolio.

RESIDENTIAL REAL ESTATE: I have a friend that has close to a dozen single family homes. He “bought well”…but not “near”. He spends a terrible amount of time running between them for management and maintenance duties.

Why I Endorse Commercial Real Estate

COMMERCIAL REAL ESTATE: Money is pouring into commercial real estate as investors perceive it to have great long term potential, having good yields as well.

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