Distressed Real Estate and Fulcrum Capital
Oct 18, 2022Let me get right to it. There is going to be distressed real estate – I mean it is already here. Here is the background and some thoughts about what to do: First – some history – during the Global Financial Crisis, many thought there would be tons of real estate distress. I recall meetings and seminars planning for an enormous wave of distressed real estate. However, the Fed and other governments printed a lot more money, which lowered interest rates. This permitted most of the cans to be kicked down the road. There was some distress for sure, but not nearly the expected level. Second – came COVID – and there was again a major expectation of distressed real estate. However – other than retail, hotels, and a few other places – the crash and distress were a flash that lasted a little over 60 days, and the dip quickly disappeared to be replaced by a boom. This was again due to interest rates continuing to fall – plus the government continuing to print dramatically more money. However, this time it is quite different.
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