We all wish we had a crystal ball to predict the future.  Alas we don’t … we need to rely on our experience and market savvy to make good buying and selling decisions. Many Real Estate experts anticipate a tough year in 2010. They may be right, but in these challenging times there will be opportunities.

2010 will continue to see tough credit and cash requirements from commercial lenders. This does not mean financing is not available, only that the lending institutions are going to expect to be in a safer position with lower loan to value ratios and a more critical look at the borrower’s credit and the property’s value and income potential.

Kenneth O. Riggs Jr. CCIM, CRE, MAI wrote a great article in the January/February 2010 issue of Commercial Investment Real Estate Magazine. This article is an honest and critical analysis of the issues investors will face in 2010 and where opportunity might lie. The full text can be read at …. http://www.ciremagazine.com/article.php?article_id=1477

Mr. Riggs said “Commercial real estate continues to suffer on two fronts: space demand… and upside-down credit…” These issues plagued 2009 and will continue until consumer confidence returns and production demand results in American business growth.

He also said “…investors will hunker down; face gut-wrenching issues, and make difficult decisions. But 2010 also may be a good year for investors to purchase quality properties at reduced prices.”

Real Estate investing in 2010 will not be for the faint of heart, and cash will be king! This means however excellent opportunities may present themselves at any time and you need to be ready.

I have one client that through 2009 said “I’m keeping my powder dry” meaning conserving their cash so they would be in a good position to capitalize on these opportunities when the present themselves.