Lose The Real Estate, Save The Busines, part one.

Ladies and gentlemen, let me tell you what you already know… the bubble has burst!

Yes, after a decade or more of constantly increasing values the free ride has ended. We are told by economists that really know (not politicians or real estate agents) that real estate will continue to decline and then will remain flat for the next decade. We must reset our minds, change our beliefs, adjust our habits… or suffer severe consequences.

Many people who invested in real estate to support their business are now confronting mortgages that they cannot support with the reduced revenues from their business. Yet, so many hold tenaciously onto their properties, spending more than they can possibly afford to keep the dream going, as if the bubble will repair itself and the value will return. It is not going to happen.

Many others in this predicament are in default and simply cannot pay the mortgage thus they confront disaster as they risk the loss of not only the real estate, but also of their valuable business. Even if the business is experiencing reduced revenues, it is worth saving. The necessary exercise, then, is to protect and preserve the business and lose the real estate, then work out your personal guaranty. It can be done. We do it all the time.

Lose the real estate, keep the business going. Strip off the debt and reduce the personal guaranty. This works, but, you must lose the real estate.

Call us. Norm will arrange a no-obligation teleconference to help us figure out your options: 413-584-2581.