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In the early 1980s, we experienced the prime interest rate being above 20%. We were in an economic recession here in the U.S. back then, and people weren’t too excited in knowing that if they purchased commercial real estate, they’d be asked to pay more than 20% in annual interest on their loans.
The economy has been chugging along fairly nicely in most areas for several years now. But this then always begs us to ask the question, “When will we experience the next economic downturn?” This isn’t a question that we often like to ponder, but at the same time, we’d always like to anticipate what’s coming our way.
Often times owners can believe that overpricing their property when they first put it on the market can be a good idea. They can sometimes begin thinking, “Why not just ask for a lot more money than I can expect to get?”, but this can then create problems…
We’ve all received E-mails over the years from someone claiming to be from an African country, and telling us that they’re trying to get tens of millions of dollars out of their country. Then they appeal to us to begin working with them to get the money out of their country, and they tell us that they’ll reward us handsomely for doing this.