Recessions are always a tricky time to navigate regardless of your experience as a real estate investor. Every day that rolls in brings new movements in the market and, depending on your position, challenges or boons. And if you have several endeavors on your plate, staying on top of things can be tricky.
A commercial real estate advisor is different from a secretary, but they can help you ride out the recession with your CRE investments in Miami intact. Here are a few ways how.
They can steer you away from spec projects
Plenty of people rely on real estate as a hedge against inflation, so much so that they scoop up any opportunities that come their way— even if they’re not recession-proof or commercially viable. In the end, they come out of the recession without assets and debt to pay. On the other hand, some investors are too cautious that they end up doing nothing at all.
A CRE advisor knows how to strike balance, allowing you to invest in projects that are worth your while. For now, these are investments that are not capital-intensive and with a realistic exit strategy. On the financing side, opt for long-term debt, which can help you better manage your investments even with rising interest rates.
They can assist you in reevaluating your current portfolio
One of the best ways to protect your investments during a recession is to take a step back and reevaluate the market and your portfolio. How long is the recession expected to last and can your portfolio absorb a down market? Your CRE advisor will identify the necessary steps you need to take to ensure your investments endure the downturn.
A recession can also be a great time to plan for future commercial real estate investments in Miami. A CRE advisor can find you investing opportunities in a recovering, post-recession market.
They can help you build a resilient CRE portfolio
Part of being a smart CRE investor is making wise moves from the get-go, even if a recession is not imminent. It’s one of the best ways you can protect your investments and reap all of the eventual benefits.
A resilient and recession-proof portfolio is also the goal of every CRE investor for their client. There are several things they can do to achieve this, one of which is to study historical cycles and patterns. Markets usually turn every 7 to 14 years, depending on several factors. An experienced CRE advisor knows how to study market data that covers long stretches of time to identify risks.
What are the periods where a recession or stagflation are likely to occur? What can be done to mitigate or avoid negative effects entirely? Your CRE advisor will create plans to make your portfolio future- and recession-proof.
A commercial real estate advisor by your side is a valuable expert to have during a recession, as well as before and after a downturn. Connect with Jerad Graham and the EXP Commercial team at (305) 874-0835 or send an email to find recession-resilient commercial property for sale in Miami.
