Some savvy investors who purchase these discounted office buildings may choose to convert them into multifamily apartment buildings if the remodel and rezoning costs aren ’ t too high . Are you seeing heavily discounted office building deals in the areas where you live or invest as well ?
Two of the main causes for falling residential and commercial real estate values are related to rising unemployment and upsidedown properties as more
people may soon clearly see , sadly .
AllTime Record Consumer Debt and Defaults
The ability to pay rent or a mortgage payment is directly related to access to cash and credit for most people . When times are more challenging and the employment or investment income is either lower or nonexistent , many people choose to access their credit cards to make their monthly payments . Once the credit card limits are reached , some tenants may not be able to pay their rents .
There is not a single state in the U . S . today with less than a 10 % credit card delinquency rate for their residents as credit card APRs are near 28 % to 40 % in 2024 , depending upon the credit card issuer and the borrowers ’ creditworthiness .
Back near the depths of the Great Recession in April 2009 when credit card rates were closer to 12 %, the national credit card delinquency rate was only 6.77 %.
Highest Credit Card Defaults
By state , here is the percentage of consumers who are delinquent on one or more accounts :
• Mississippi 39 %
• Louisiana 32 %
• Alabama 31 %
• Arkansas 30 %
• Oklahoma 28 %
• Kentucky 28 %
• South Carolina 27 %
• Tennessee 26 %
• Texas 25 %
• West Virginia 25 %
• North Carolina 24 %
• Indiana 24 %
• Georgia 23 %
• New Mexico 23 %
• Missouri 22 %
• Arizona 20 %
• Nevada 19 %
• Wyoming 18 %
• Oregon 17 %
• California 15 %
• Florida 15 % Sources : Trading Economics and John Williams
Top 10 Credit Default Cities
Here are the U . S . cities where the largest share of people are behind on their credit cards by at least one payment .
1 . McAllen , Texas — 51.7 percent 2 . El Paso , Texas — 46.3 percent 3 . Baton Rouge , La . — 45 percent 4 . Greensboro , N . C . — 44.8 percent 5 . Columbia , S . C . — 44.6 percent 6 . Jackson , Miss . — 44 percent 7 . San Antonio , Texas — 43.8 percent 8 . Augusta , Ga . — 43.3 percent 9 . Greenville , S . C . — 42.6 percent 10 . Memphis , Tenn . — 42.5 percent Source : LendingTree
Discounted Real Estate Buying Opportunities
Just like following the Great Depression , the Savings and Loan Crisis , and the Great Recession , there were incredible discounting buying opportunities for homeowners and investors who were searching for both residential and commercial real estate deals .
You must continue to stay focused on the opportunities rather than on the obstacles to get ahead in this world . “ Out of chaos comes opportunity ”, as I like to say repeatedly to friends , family , and clients .
If 99 people are running towards the hills and doing nothing , you can be the sole brave and wise person who buys the property for almost cents on the dollar like some of the office building deals . If so , you might create generational wealth for you and your family .
MEET RICK TOBIN
Rick Tobin has worked in the real estate , financial , investment , and writing fields for the past 30 + years . He ’ s held eight ( 8 ) different real estate , securities , and mortgage brokerage licenses to date and is a graduate of the University of Southern California . He provides creative residential and commercial mortgage solutions for clients across the nation . He ’ s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation ; the oldest real estate school in California ; and the first online real estate school in California . Please visit his website at Realloans . com for financing options and his new investment group at SoCal Real Estate Investors for more details .
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