I've been in the RE and construction biz for about 30 years and have bought and sold most types of residential, commercial, multi unit rental properties, developed land and built many homes and buildings over the years. Yes, the present market is very depressed and banks are reluctant to lend if speculation is involved on the borrower's end. However, during the past few years, many "newbie" investor types purchased commercial and residential rental properties with highly leveraged money and are struggling to make payments on these properties. Many of these properties have been foreclosed on by lenders and are being resold at very reasonable prices. IMHO, the time to purchase most any type of real estate hasn't been this good in many years. If you intend to invest for five years or more, and are not trying to make a quick buck, the returns should be very, very lucrative.