“Cha-Ching” on Commercial Real Estate –
The Next Shoe to Drop

Think the residential mortgage bust is bad? The commercial side is now sitting like Humpty Dumpty waiting to crack open the next crisis.

Commercial real estate has fallen 20% since the beginning of the credit crisis – and it’s likely to get worse. Just like home sales, low interest rates allowed companies to bid up properties. The market went crazy building malls, skyscrapers, office buildings, and resort condos.

And now financing has dried up like a stone… Landlords are about to default on mortgages. Roughly a third of the $600 billion in mortgages will come due in short order. Add to that falling real estate values and low liquidity, and the second shoe of the credit crisis is about to drop.

So here’s the thing: While everyone else is still looking at residential mortgage backed securities, we’re going to start ringing the cash register. Who’s going to fill the vacancies in those new commercial towers and complexes? Would you bet on a new luxury hotel today? Well, we are, but not in the direction one might think…

Let me give you a clue. Retailers like Linens-N-Things and Starbucks are already closing stores. Hotels are desperately under booked and losing money. Commercial REITs are about to take a deeper nosedive. Rest assured, we’ll show you the right time – and the right plays – on all of those. But take a look at these three blockbusters, too:

1. Gramercy Capital Corp. is as good as dead. It was spun out of SL Green to facilitate commercial real estate financings. Too bad it’s essentially bankrupt and has about a snowball’s chance in hell of getting anyone to give it any capital. It’s already so deep in the hole that its demise will probably cause a domino effect in the NY real estate financing market. It’s at $2.34 and heading back to its recent low of $0.66, if not finally to bed…good night. You could score big on this one – if you know when and how…
2. SL Green Realty Corp is a huge landlord in New York. It’s going to be in bad shape with all the financial sector layoffs and the loss of billions of dollars of revenue from those high-paying jobs. The retail and commercial real estate that SL Green holds is likely to collapse. It’s at $36 and heading back to its low of $25.48, but don’t be surprised to see it test bankruptcy waters. Of course, when the time is right, a few smart wealth builders will be there ahead of the game to collect some solid gains…
3. General Growth Properties, Inc. operates as a self-administered and self-managed real estate investment trust. It develops and manages retail and other rental properties, primarily shopping centers in the United States, as well as festival marketplaces, urban mixed-use centers, and strip/community centers. With the demise of the consumer, the bankruptcy of retail companies, and the inability to finance its ongoing construction without signed leases… expect GGP, now at $4.50, to test and break its recent low of $1.97. Cha-Ching!

Cha-Ching on Beaten Down Economies

Here’s an event few are yet aware of…

The International Monetary Fund, IMF, has just put together a $100 billion, “No-Strings-Attached,” rescue fund – but only, they say, for countries who they believe are experiencing short-term squeezes yet are fundamentally strong.

We know who they are, and we’re going to follow the lead of the IMF once the money starts flowing. The opportunities are outstanding…

World stock markets are now trading at 1970s prices. It’s like going back to 1970 and buying that Ferrari Dino 246 GT-GTS you always wanted and watching it appreciate 300% in a matter of months. Just consider that:

• India’s market is now trading at a price-to-earnings multiple of 12.6. It was trading at 28.5 times trailing 12-month earnings just a year ago. We’re looking at a minimum 100% gain waiting to happen – if you know when and how to play it… 
• China’s market is trading at 9 times trailing earnings, down from 27 times earnings last year. That’s a minimum 100% gain waiting to happen – if you know when and how to play it… 
• Mexico may be poised to return to growth status with the help of mucho IMF money. The iShares MSCI Mexico ETF (EWW) is now down to $30, it could bounce back to its 52 week high of $64 or break higher over the next 18 months. That’s a 100% gain – if you know when and how to play it… 
• Brazil has been beaten up. Brazilian ETF iShares MSCI Brazil traded as low as $28.39, which it could test again before it sees its potential to bounce back to its 52-week high of $102.21. That’s a potential gain of over 260% – if you know when and how to play it… 
• Then there’s South Korea. It’s the harbinger of all things having to do with exports in Asia. Expect one South Korean play to test its low of $20.31 and possibly head into the teens, before recovering to its former high of $73.85. That a gain of over 260% – if you know when and how to play it…

In short order, we’ll know exactly where the IMF money is heading. And we’re going to follow right along.

In fact, we have so many ETF plays to take advantage of this $100 billion windfall that NOT getting in on even one of these is like not bothering to pick hundred dollar bills if they were falling from the sky.

The best part is they’re cheap, liquid and traded on the New York Stock Exchange. Within 14 days you’ll learn about some of the hottest places to make a sizeable fortune… 

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