Here’s How to Close Deals During an Economic Downturn
Years ago I interviewed a woman who is a member of CCIM, and she told me what she had been doing during the last economic downturn that generated such tremendous income for her. She recognized at that time that commercial real estate investors living here in the U.S. had substantially cooled down in their interest in buying properties, but she realized that investors living outside of the U.S. would still be interested in investing here, because the economies within their own countries were much worse, and less stable, than what we were experiencing here in the U.S., and this woman then decided to capitalize on this.
So she began hosting events in Canada, attracting investors to these events who were interested in buying U.S. real estate, and the results that she produced were outstanding…allowing her to close a significant number of investment transactions with these Canadian buyers, while her normal investors living here in the U.S. were mainly just sitting on the sidelines.
With this in mind, the reason I’m mentioning this to you is because I believe that by the time we get to the end of 2023, there will be wealthy investors living in foreign countries who will be looking to get their money out of their own country, and they’ll be interested in investing that money here in the U.S., which could then create a big opportunity for you as a commercial real estate broker.
Similar to what the woman who I’ve mentioned did in Canada, I believe there will be opportunities for you to do something similar with investors from around the world, too. The way that things are now progressing within Europe, for example, indicates that many people living there could very likely begin facing much more challenging economic conditions, leading to economic hardship, civil unrest, and investors feeling that they’d rather get their money out of their own country, and into a safer one.
We here in the U.S. will be dealing with our own economic problems, too, but we will begin appearing to foreign investors as the safer place for them to invest their money.
So this in itself could represent good opportunity for you, if you’re willing to rise up, recognize the opportunity, and meet the challenge.
In addition, countries in Europe may begin experiencing some very irate citizens once they discover that the pension money they were promised for retirement, isn’t available for them, in anywhere near the same amounts that they had been promised. There are rules in European countries mandating that 70% or more of pension money must be invested into government bonds, and with those bonds having been providing such a low rate of return, combined with sometimes even providing a negative rate of return, a real storm with these pension recipients is likely to be coming.
Then when you combine this with everything else that has been happening in Europe, including the skyrocketing cost of energy, the limited supply of it, and people who, during the upcoming winter, will have great difficulty just paying their own energy bills to remain warm, the year 2023 over there could look very, very different than the one they’re now experiencing in 2022.
So if you’re someone who is willing to pursue an opportunity like this one, I invite you to take a look at it. Perhaps you can partner-up with someone in one or more foreign countries who can put together the audiences for you to talk to, and then you can offer that person referral fees from the money that you will be making.
This certainly can beat the heck out of dealing with many local real estate investors here in the U.S. during an economic downturn, who will often just tell you that they’re not interested in buying, until they feel better about the economy.