Been saying this for some time; SOOOO much profit from the r/e boom years was thrown into carefully marketed 'exchange properties' with not nearly enough due diligence. An entire retail investment market was created to suck up the found money so many people had lucked into by selling real estate. Everyone thought they were trump jr. You could actually go to websites and see properties, both commercial and large multi unit residential, listed by 'cap rate' along with minimum investment amounts. Companies like Rite Aid took full advantage of this easy money by selling their new stores (the r/e) before they even opened!
You could find a whose-who of the worst chains in America on these lists yet Joe Lucky with his $1m cap. gain was so afraid to pay a whopping 15% cap. gain tax he ignored the basics of investing. It's a Rite Aid or Burger King, what could go wrong?
Values (cap rates) were set by the very companies that built the properties and were leasing them back!!!! Utter nonsense!!!
Now the cracks are showing.
Know of one project that is facing foreclosure. Demanding further cash infusion from its 'investors' to stave off bankruptcy. Many others LONG AGO reduced payouts citing that the gauranteed return rate was only for 2yrs. or some similar small period.
Cheapest darned income tax we're likely to see in our lifetimes and yet folks insisted on taking their big winnings to Vegas (literally in some cases).
I don't know how this kinda stuff isn't front page news.