Why Some Investors Are Seeing Opportunity Today
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Some investors are seeing opportunity in the current state of the market. Specifically, long-term private investors are seeing a potential pricing adjustment and opportunity for portfolio growth. Atlas Real Estate, a firm focused on providing financial autonomy to private investors through real estate investment, is continuing to move forward on new acquisition opportunities.
“Big institutional buyers are suspending buying, which is an interesting move. We are still actively searching, but we are monitoring pricing very closely,” Mike Hills, VP of Investment Brokerage at Atlas, tells GlobeSt.com. “We are monitoring rents and vacancy, because if people can’t pay rent, it will change the price of real estate. In our financial modeling, we are building in higher vacancy rate, higher bad debt rate and better cap rates to make the financial plays. The biggest thing that we are doing is holding in the long term. We are buy-and-hold, fixed-rate investor. That is the way that I recommend people buy.”
This is specifically true of the long-term investment pool that Hills represents. “In the short-term, this is going to have a very drastic impact,” he says. “But, we all knew a downturn was coming. We had been on an upswing for years, and if this is the recession that is coming, then fine. That doesn’t mean that we aren’t buyers; it means we need to be a little more cautious and have cash on hand. There are so many unknowns, so the market requires more caution.”
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