Below are my seven strategies to make big profits in CRE in 2021.
Acquire Distressed Hotel Assets
The hotel market in 2020 was decimated by Covid and state lockdowns with falling demand, occupancy, and RevPAR. Per CBRE through Q3-20, room demand was down 36.8%, national occupancy was down 37.9% and RevPAR down 54.5%. These are horrible statistics, however, where there is great distress in CRE, there is also a great opportunity. The economy is expected to recover substantially in 2021 with increased business and leisure travel. This will be exceptionally good for the hotel industry and many hotels today can be purchased at exceptionally low values or the debt can be acquired at a substantial discount to eventually obtain the hotel asset or get repaid at par value.
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