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Published:November 13th, 2009 19:26 EST
Are We Almost at The Bottom?

Are We Almost at The Bottom?

By Joel G. Block (Mentor/Columnist)

There`s a lot of talk these days about finding the bottom of the real estate market or finding the bottom of the stock market. It`s important for anybody who is an investor to understand that "the bottom" is a historical perspective.

The only time you ever know where the bottom of the market was is by reading the paper a week, a month, or a year after that bottom has occurred. There`s no way to know where the bottom is when you`re in the heat of the moment. Accountants are experts at finding the bottom because so many of them look at the world through the rearview mirror of their cars. They see the world backwards and they, therefore, are able to define precisely where the bottoms of the markets are.

For those of us who are investors -- whether professional investors, casual investors, or serious investors -- we understand that the bottom is not as important as finding opportunities that we can profit from. And we make those opportunities by finding situations that we can have some amount of control over. If you are on the field playing ball, your goal is to make plays -- not to worry about where the bottom is. Think about how paralyzing it is to focus on where the bottom is.

I speak regularly about the three types of distress in real estate and these types of distress apply to business opportunities as well. Keep in mind that there is owner distress, property distress, and market distress. We all make money in distressed markets, but since all of us run on equal footing with regard to market distress, timing the market is not the best way to make money.

The best way to make money is to find real estate or businesses that have some form of distress that we as owner/operators can come in and correct. If we can correct those deficiencies then it doesn`t matter where the bottom or the top of the market is. What matters is that we can make money by fixing deficiencies and that`s the reason that management teams are so focused on operational correction.

If you are an investor -- especially if you are a passive investor -- focus your attention and ask questions about the business plan that the operators have in place for correcting whatever deficiencies the real estate or business asset has that you intend to invest in. When you understand the business plan and you understand the way that the operators will correct the issues, then you can ascertain the way that the owner distress or the building distress will affect your opportunity for making money. Then, whether at the bottom or the top, the market will only add to the profits that will be made from the managerial turnaround.

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We are in the real estate syndication business. We invest in properties and we offer seminars to assist others in acquiring the skills needed to syndicate properties. This topic is very relevant for helping you in raising funds or investment capital for any real estate investment, whether it be for commercial property or another kind of investment property.

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About Joel G. Block, President of Growth-Logic, Inc. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and faculty member of the iLearningGlobal community.

To bring Joel into your company, please visit http://www.joelblock.com. Also, we have expanded our focus to include the purchase of real estate assets. Please see http://www.bullseyecap.com/ to learn more.