There’s an old, albeit unrefined, adage in media, “If it bleeds, it leads,” which encapsulates the notion that humans are generally drawn to stories of distress or
disaster. No matter what the topic is, it’s a tried-and-true premise that negative headlines sell.

In the real estate space, investors find themselves frequently presented with negatively focused
news as prognosticators and “experts” highlight potential market turmoil and evoke the fears of the   2008 financial crisis, drawing parallels with current high-interest rates and global conflict. The resulting atmosphere of uncertainty is causing investors to make no decisions, sitting on the sidelines, which could have potential long-term negative effects on their portfolios.

The reality, however, is there’s plenty to be optimistic about including strong wage growth and employment along with retail sales, stable oil prices, and an upward trajectory on Wall Street – all factors that have traditionally been the bedrock of a bull market. 

So why the negative headlines? Remember, it’s what sells. 

Fortunately for real estate investors, there’s access to reliable and honest information and yield potentials through alternative investments, specifically with Pacific Private Money. 

Start by understanding that there is no “national real estate market.” The headlines that generalize market trends are misleading and lump real estate into a broad category when the realities of residential, multi-family, commercial, and retail markets are drastically different, particularly when you look at them through a regional lens.

For example; today’s commercial real estate market is struggling with the post-pandemic office space purge, but in the residential space, there’s a near all-time low in homes for sale leading to high prices and average offers – a good thing for sellers. The hallmark of successful alternative investing is to invest where there’s demand. 

Another important thing to know is that for long-term real estate entrepreneurs, there’s no such thing as a bad real estate market. Whether it favors buyers or sellers, there’s always going to be opportunity. It’s a market void that Pacific Private Money capitalizes on by being able to do what traditional lenders can’t. 

Following the Global Financial Crisis over a decade ago, banks have been forced to tighten their lending restrictions leaving even the most qualified entrepreneurs unable to secure fast capital to scale their businesses. In today’s lending market, speed is the difference between closing the deal or not. Pacific Private Money has become the lender of first resort for those businesses who don’t have time to wait (and are often, denied after weeks of waiting for approval). And by distributing just 15-20 loans per month, we’re able to be selective and pick the opportunities that provide the most security for our clients.

The best defense to incorrect information is education. In the world of alternative investing, knowledge isn’t just power – it’s profit.


Author: Pacific Private Money, Inc.