Where are the best places to invest your money now?
There are many places you may want to put your money. Yet, as the economy changes so rapidly, many are stuck wondering what to do with their capital, how to protect wealth and ensure that they have some income to get through the years ahead.
Where Not To Invest
There are lots of pretty obvious places not to invest or hold money right now.
From publicly traded stocks, to private equity in frothy tech startups, crypto, bonds, and exotic NFTs, there are many asset classes that seem highly risky, likely to collapse in a huge way, and with little justified upside potential.
So, what’s better?
How About Real Estate?
Is the real estate market changing too?
Absolutely. There will certainly be trickle down, ripple, and waterfall effects on the real estate industry from other areas of the economy. Some of these are very good, others not so much.
In spite of soaring prices and rents, there does seem to be the potential for some distress coming down the pipeline.
Many homeowners will certainly find themselves struggling financially in the next few years. In turn, many bank stocks may suffer as their own investments and activities see poorer performance.
Of course, whenever there is distress and challenges, there are also fantastic opportunistic investments. These are what enabled us to help individual investors thrive through the last crisis, and not lose money.
There are two very clear areas of opportunity here.
The first is builders.
Builders will quickly find themselves in trouble. Their loans and lines of credit are the first to get cut off in a crisis. They have built with the aim to price at the top of the market. This is a great opportunity to bail them and their lenders out, by helping them close out a project, or stepping in and completing it.
There are great discounts to be found on brand new, highly desirable product, which can be sold off or leased out.
The second is multifamily. Cash flow is very important in these times. Yet, many apartment building owners have commercial mortgage loans that are maturing and are ballooning. They didn’t think this far ahead, and many will be unable to refinance to avoid a default. Or they will find it unattractive to do so with their current NOI and interest rates.
With fresh capital, and more efficient operations, these can be great cash flow producing assets, with strong yields, and downside protection.