For Sale or On Sale?
By Ricky Lyons in : Champion Culture, Culture Thoughts, Ricky@Champion // Aug 17 2010
Everyday we receive phone calls asking if we have anything for sale. They expect the answer – “of course, everything is for sale!”
That is not necessarily true.
At Champion, our plan is to hold our assets long term. So in this case, the assets are not for sale and potentially are not for sale at any price.
When is the exception?
We make an exception when we enter into an incredibly aggressive cap rate environment, at which time, there’s a very strong argument to move the assets from real estate to cash.
But I’m not sure the real question is if anything is for sale. The better question might be ‘if it is for sale, is it on sale?’
That depends very much on your view of where the world is going. As an eternal optimist, my view is that we will work through this recession, as painful as it has been, and we will get back to the level of normality. We are now approaching the type of difficulties that occurred in the recession of the early 1980s. Living in Canada at that time, we definitely had a problem with 21% and 22% interest rates. That made money impossible to borrow even at hard money costs. That’s where we are in 2010.
Looking back, those who sustained their real estate through the recession found that as the recession ended and the better economy came back, they were the ones who built their wealth.
Are your assets for sale? If they are for sale, are they on sale?
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