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Is there an effective means of shorting commercial real estate available to retail or "small" accredited investors? Seems like an easy bet to take.
by lumost 2y ago
Is there an effective means of shorting commercial real estate available to retail or "small" accredited investors? Seems like an easy bet to take.
- itsoktocry 2y ago>Seems like an easy bet to take. Well, yeah, you're two years too late.
- lumost 2y agoPrices haven't really fallen yet to my knowledge. There is a lot of resistance to letting prices fall (marking to market), and many commercial real estate deals are multi-year. RTO mandates indicate that larger employers aren't yet willing to give up office work. IMO I expect to see something give over then next 3 years, with some markets taking longer to correct.
- freitzkriesler2 2y agoYes, just short real estate investment trusts for commercial property, write puts (options) against these shares (warning make sure they're covered and not naked), or throw money at many of the ivnerse ETFs out there.
- koolba 2y ago> warning make sure they're covered and not naked Covered puts wouldn’t be net short. They're net neutral or positive as the puts expire worthless if the price doesn’t drop. You can hedge your puts by buying some calls to limit the max exposure if the price rises. Buying puts would be a net short position.
- asdff 2y agoYou are betting against the house though and the house always wins, logic be damned. commercial real estate is an over 22 trillion dollar market in the U.S., there is a lot of well lobbied vested interest in not letting that money poof into smoke.