Senior Principal Partner and Chief Investment Officer at Guterman Partners Once Again, Generational Real Estate Opportunities Gerry recently published the latest of his white papers covering the state of the market, and where he sees the opportunities now. Among the current challenges he tackles in his report are: ● The increasing number of rental to condo conversions ● Reducing value of condominium units ● Cash flow problems due to rising costs and rates ● Difficulty in refinance for developers ● Overleverage by builders ● Lack of product to market fit ● Reluctance of lenders to provide more debt ● Oversupply of luxury condo units What this all leads to is that many of these developers are sitting on a huge amount of inventory. Inventory on which they can’t really reduce retail prices on themselves. While they are facing more cash flow crunches and challenges in restructuring debt. In some cases individual developers in NYC are sitting on 1,000 or more unsold units. They need out. It’s a repeat of 2004 to 2008 all over again. Though when the same problems show up, the same opportunities for creating great cash and leaps in wealth arise too. 41 Strategies for Taking Advantage of the Current Market Gerry told us his firm currently sees opportunities in: ● Medical offices ● Retail strip plazas ● Family sized apartments This is of course restricted to certain states and markets. Most notably outside of some of those facing some of the most fierce political and regulatory uncertainty at the moment. Among Gerry’s favorite strategies in this phase of the market is bulk buying of condo units. For example, 80 or so units at a time. Those units are converted or resold. Typically within 19 months. .