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Outlook for commercial real estate investment

For our clients outside the United States who plan to buy commercial real estate (and I met with some of you on my recent trip to Singapore and Jakarta):

By the end of 2010, about half of all commercial real estate mortgages will be underwater, said Elizabeth Warren, chairperson of the TARP Congressional Oversight Panel, in a wide-ranging interview on Monday.

Banks and property owners are going to be under increasing pressure.  Prices will drop.

Do your preparation now.  Maybe test the market a little.  Get ready, get smart.

You don’t want to be setting up your business models (what do I buy? where do I buy it?), infrastructure (how am I going to hold these assets for maximum business and tax efficiency?), and figuring out financing (do I use all of my cash?  do I borrow?  if so, who is the lender and what is the loan arrangement?) while you’re shopping for deals.

Time and focus.  Those are the items in short supply.