Economic Collapse: Real Estate Attorney says Commercial Real Estate Doomed
Wednesday, February 17th, 2010 at
2:13 am
econochristian.com Real Estate Attorney Steve Meister speaks on Neil Cavuto’s show about the impending commercial real estate collapse. It is only the “eye of the storm” that is the economic collapse amoxicillin without prescription of the USA.
Armageddon is here Folks!!!!
My question is where has all this money “POOFED” to?
It seems like it was never there in the first place. If I purchased a property for 1 million and it went up to 10 million. I then refinance, take out equity and put in into other over priced realestate. It’s then reinvested and didn’t actually go anywhere. Somewhere in this whole thing there has to have been TRILLIONS siphoned off somewhere. Where has all this money gone??
Otherwise let all property defalt and be sold at low market value
BOHICA
Let’s not be negative in our thinking about the economy. Become more optimistic and learned. The reason why we are inclined to be negative at times is because we are unwisely ignorant about what economic building solutions can be applied by us. When we know better, we become more optimistic and would not be so moved by what we hear from ignorant worried news reporters and so called “experts”.
What matters is if the commercial property sells at a fair price. And the buyer must purchase it with no loans. That will help the economy. It would be better for residential property owners to purchase their property through debt than for a commercial property owner to purchase his or her property through debt. And the purchasing in either case must be done through an extremely fair price. This setup can improve any economy.
A perfect storm in CRE, maturity defaults, operating performance issues, and lack of additional capital.
The other BIG RISK is the coming rise in “Cap Rates”. Going in cap rates are at historical lows, driven by the low rates in the debt markets. What will happen to cap rates when investment in less risky yields rise (treasuries per say)? Cap rates will have to rise. Combine this increased yield requirement with struggling operating performance, and viola…disaster in asset prices…