Nobody Knows

Nobody Knows
I have found 2 articles lately that propose to tell what the real estate business is going to be like in the coming months. What I learned from both articles is that the author hasn’t a clue. One guy said to be sure to buy “value”. He did not say what he meant by “value”. Last year I would have described “value” as a credit tenant with a long term lease. The question now with that formula is who is a credit tenant?

There are businesses that are doing well. Family Dollar for example is growing their profits. Family dollar stores are normally in ratty neighborhoods. One would probably have to buy a small strip center with mom & pop tenants and the family dollar store to get just the one tenant. Family dollar being the anchor surely has an advantageous lease. The Levines are some of the hardest negotiators on earth. The terms of their lease may not be very good.
Maybe it is best just to keep cash. I can’t help but thinking the economic stimulus package is going to stimulate the printing presses. What will that do to the value of cash?

David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com