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Distressed Assets And $1 Deals

by blogger1
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on Thursday, 16 March 2023
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The next banking crisis now seems to be well underway. SVB’s going bust is likely just the first domino to fall. Which means it is time to get busy finding those deep discounts and doing the best real estate deals of your life.


$1 Deals

HSBC just bought the UK business of SVB (Silicon Valley Bank) for just $1.22.


During previous crises saw real estate billionaires like Sam Zell made famous for similar $1 deals.


Many more huge bank failures are likely in the works. Which is going to have a waterfall effect on other businesses, and individuals, spawning even more distressed assets.


House Deals For 40 Cents On The Dollar

During the last financial crisis it was common for real estate investors to pick up properties and mortgage notes for as little as 40 cents on the dollar. Sometimes even less. Though you can still probably make sizable profits at 60% or 70% of recent values.


While not all property owners and sellers are that deep in financial distress yet, or won’t see and admit it, we can expect millions of motivated sellers to emerge soon.


Making Money In This Market

This is when the real wealth gets made. It is when the few winners emerge, and displace the majority of the competition.


This will probably represent the best discounts on real estate you will see in your lifetime. Thankfully, interest rates are also much lower than they were last time too. At least for the moment. Financing is still available too. Especially for real estate wholesalers seeking to eliminate risk, and make their money before asset prices change further.


To succeed and be one of the winners it may take flexibility in your business model and some creativity. As well as staying strong while others panic.


To access many of the best deals and discounts, and in volume, it can take connections. Be sure you are staying ahead by building your network, and developing strong human relationships.


Then to turn those deals into dollars of profit, you’ll need to be unleashing some of your best marketing to end buyers yet.


Those with the best marketing, and who continue to stand out from their competition will be those that are able to enjoy the most money moving into their businesses, and will create an upward spiral, instead of the reverse.


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