Recession / Depression Investing

With today’s challenging markets, it’s no wonder many investors choose to sit on the sidelines. This may be a mistake. Don’t be afraid to stick your toe in the water. There are plenty of opportunities in the Portland Metro area real estate market, however, to fully exploit them will take your patience and cash.

It’s no secret the residential real estate market is currently experiencing trauma and if all indicators are correct, the commercial market may follow suit. Keep in mind that real estate values move up and down in very long cycles and we are unfortunately living through a down cycle. This is not necessarily bad news. A buyer’s market usually sets the tone for a duel between the bears and bulls! Remember, nobody was complaining when the California market was going up every month, completely oblivious to the potential unsustainability of it all.

Whatever the technical definition, we are currently clearly experiencing a national recession or similar pullback. That’s not necessarily bad news. Remember “buy low and sell high”? Now would seem to be the right time to get into the action and take advantage of your investment opportunities with this buyer’s market.

I remember a Korean War veteran who once said to me, “Well, you could have called it a police action but it sure looked like a war from the foxhole I was sitting in..” In a recessionary investment climate, be realistic and be truthful but don’t be pessimistic. Keep your cash dry and wait for those opportunities. Now stick your toe in the water….

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