T
he real estate market cycle appears to have
come full circle again. This is one of those
moments in which many will go broke, while
others achieve substantial leaps in their wealth
and incomes. It’s all about knowing how to take
advantage of the market and the negligent moves of
others.
While there are plenty of real estate investors still
blindly and bullishly thrashing away in the market, and
many uneasily eyeing where things are headed from the
sidelines, the truly experienced are stepping in with
predictable investment strategies. They see the same
careless blunders being made by many of the same
characters. They know where the market is going. They
see the big opportunities to buy smart and convert assets
into cash. investors. Now Guterman Partners is in acquisition mode
again.
Where We Are in the Real Estate Cycle Now Gerry who is Senior Principal Partner and Chief
Investment Officer at Guterman Partners has
what is probably one of the strongest resumes
in the business when it comes to being a
sought out industry expert as well.
This includes being a guest lecturer at
Cornell University. Being the founding
benefactor of several charitable
organizations and medical research
facilities. Plus trusteeships and
directorships with the Metropolitan
Museum of Art in New York, New
York City Opera and Dallas Opera,
as well as The Rent Stabilization
Association of New York.
On an international level Gerry
has been Chairman of the
Committee on Banking and Finance
at the United States Center for
Strategic and International Studies in
Washington, DC. He has been an advisor to
the governments of Romania and Austria.
So, if anyone has the depth and breadth of experience
to really understand what’s going on in the market, and
the track record of knowing how to manage real estate
assets during these times, Gerry is definitely up there at
the top of the list. We were hugely blessed with the
opportunity to catch up with him for an exclusive
interview and his take on what’s happening now.
It’s not rocket science. It’s no longer a
closely guarded secret that only a few have
the data on. All real estate professionals
really need to do is look back at what was
happening in 2005 to 2010. Then compare
that to what’s happening around them
today. You’ll see the same glaring
mistakes.
Interest rates are going up,
lending is tightening, oversupply is
becoming an epidemic and too
many people are paying too much
for units that aren’t really a good
fit for the market.
There are really only one of three
choices to make in this phase of the
market:
1. Keep blindly investing and hold on as the
sinking ships go down
2. Do nothing and miss out on the best asset prices
3. Replicate the successes of the biggest winners in
similar historical cycles
Gerald (Gerry) Guterman and his firm sold out all of
their real estate assets in 2006. They did it again in 2016.
Since 1978 they’ve delivered 58.3% returns to their
Experience is Everything
Guterman Partners has managed almost 100M
rentable square feet of real estate since 1969.
Among the buildings and locations they’ve been
involved in that you may recognize are:
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Galt Towers, Fort Lauderdale
Gramercy House, New York
Sutton Tower, New York
Ibis Club Apartment, Naples
Memorial Building, Houston
The Stanhope, New York