Quote:
Originally Posted by berettafan
I don't know how this kinda stuff isn't front page news.
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The 'victims' are not sensational.
I also saw stupid signs of excess. A national title pawn company bought a crappy local building, slapped lipstick on it, and then put it up for a sale-leaseback agreement. The cap rate wasn't terrible (7 or 8), but it smelled funny.
I don't think commercial RE is inherently unstable. You just need to be able to analyze the fundamentals and consider the downside risk.
I think the problem is you've mistaken speculation for investing. Assumed rent increases, absurd vacancy expectations, and negative cash flow has no basis in real investing.
As the days pass, I see more signs RE on a overall basis is becoming a better buy. Are there some rotten deals out there? Certainly. Are there some real deals? Most definitely.