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Shift your focus from the economy of the market to the economy of the deal

Kaveh Jafarabadi

Updated: Mar 4




Are You Hesitant to Invest Because of the Economy?


Many new investors hold back, fearing that today’s economy isn’t ideal for real estate investing. The fear of losing money in an uncertain market is real—but waiting for the “perfect” economy can keep you on the sidelines for years, even decades.


The truth? The economy matters a lot less than the deal itself—unless you're moving at massive scale.

Let’s look at what happened when money was "free."


2020-2022: The Era of Easy Money

When the Federal Reserve dropped interest rates to 0%, investors rushed to buy anything they could get their hands on—often with short-term financing and poor underwriting. Many of those deals were profitable at 3% interest rates, but now, with rates at 8%+, they’re falling apart.

This isn’t just about rates—many deals in commercial and office spaces were based on outdated assumptions, ignoring trends like remote work and e-commerce.


So what does this mean for YOU?


The key isn’t to time the economy—it’s to find the right deal in any economy.


Here’s what that means for the deal. It should:

  • Fit your financial capacity

  • Cash flow positively from day one with healthy margins to weather unforeseen circumstances.

  • Be structured to handle future interest rate changes

  • Be structurally and legally protected

  • have a long-term utility in changing market conditions Instead of fearing today’s economy.


Shift your focus from the economy to the economy of the deal!


Are you still waiting for the “perfect” economy? Or are you ready to find the right deal for YOU? Let’s discuss!



 
 
 

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