Why Is Now Still the Best Time to Invest in CRE REIT's?
First, let me start by saying I am taking the corona virus seriously. However, let’s not add to the elevated fears.
The market has been adversely affected, not by a pandemic, but by emotionalism. Fear is never a good motivator. In this time of economic turmoil, we can offer investors hope.
The REIT market in the public sector (i.e. trades on the exchanges) generally fluctuates with its associated markets. Private REIT’s, like ours, do not tend to move the same way. The determined value of our REIT is based on fundamentals: property income, expenses, leverage, cap rate, and NOI. Our commercial real estate investment plan is to invest 70% in apartments and 30% in other CRE.
The apartment market is always sound in up or down economies because people always need a safe place to live and raise their families. The 30% investment into other CRE would be for redevelopment into mixed-use multi-family live, work, play properties.
I believe the CRE business, as a whole, is going to take a dip. There are many properties overleveraged and under leased. The foreclosure rate for CRE is going to rise and make underpriced opportunities widely available. Since we are a new REIT, we have a great opportunity to acquire these properties at discounted prices.
There is hope when investing in our new REIT that can buy discounted assets. Be ensured of the safety in investing with our experienced management who are guided by honesty and integrity as our underlying principles.
Be encouraged that although the market is down, we are the answer to a down market because we have the opportunity to preserve investor capital, while providing superior returns.
Creating Generational Wealth,
Cawthon Organization
Todd J. Cawthon, CEO
Contact us today the Cawthon Organization @ 212.470.5835 or
Invest online at www.CawthonOrganization.com/InvestorPortal
Comments