I have now seen three individual downturns, starting with the recession in the late 80’s when interest rates hit 25%. I think that this one has been the most dramatic coming off such an economic high.
Many investors are used to an environment where finance is easy and banker’s run after you begging you to take their cheap and easy finance. Many of today’s investors don’t remember the days when you could hardly get finance and you had to have world class relationships with your financiers, just to get a new bond or overdraft.
Yes, some banks have loosened up on new financing, but I think that this recession is far from over and that we are in for a period of a long recovery. There will be plenty of bargains around; in fact there already are. We are selling real deals right now.
So quickly build world class relationships with your financiers because my view is that right now you need them more than they need you. And the people who have access to funding over the next 24 months will make a killing snapping up deals that others can’t afford to buy.