What Do I Do With My Money?
Will this Bull Market last forever? Sadly it will not. After the painful crashes of 2008, 2000, 1994, and 1987, you would think that investors would not get caught up in these frothy markets ever again, yet here we are doing the exact same thing. This time will be worse as the stampede starts. Money […]
Multi-Family: It’s a stampede!
Reminiscent of 2007, the big brokerages (CBRE, Cushman and Wakefield, etc.) are selling multi-family at 4 or 5 CAP rates! The stupid money is back and they are buying at any price. Cash is pouring into the commercial market from overseas from investors that are desperate to get their money out of their failing economies […]
Commercial Real Estate – Long Term Investment?
Commercial Real Estate has traditionally been a long-term investment until the mid 1990’s. Creative financing including high loan to value (LTV) borrowing, three to five year balloons, and the quick hits of CMBS (Commercial Mortgage Backed Securities), CDO’s (Collateralized Debt Obligations), and many other financial instruments (“smoke and mirrors”) have trashed the value of commercial […]
Investing in Rental Houses?
Investment in rental houses has become prolific these days. It started with large hedge funds buying tens of thousands of empty-foreclosed-homes from the banks. They were getting these houses for around twenty cents on the dollar. After attempting to turn these properties into rental-backed securities (they just can’t control themselves) these large hedge funds decided […]
Debt is Collateral?
In our current economic ocean of insanity, one of the worst aberrations of sound financial policy is the creation of a new kind of collateral—DEBT ! It seems that in order to borrow billions and billions more of “money”, it was necessary to first take all of the real collateral in the world and turn it […]
