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Move to all cash investor transactions
We are contrarian investors. We are now only doing real estate transactions with our clients when the transactions are all cash. No leverage. Minimal risk. Are we crazy?
79 months ago
1 answer
Rates have been at historical lows in an aritificially low interest rate environment and are projected to gradually creep up over the next 18-24 months. RE valuations are at highs (see my partners at HBC recent transactions at L&T 5th Ave, Vancouver, etc.) so why wouldn't you take on a prudent amount of leverage given the LTV opps currently avialable in this market. Real estate as an asset class, without any leverage, doesn't make a lot of sense unless you are coming out of a distressed scenario where you can scoop up properties at a discount as a cash buyer.
I don't think you are crazy as valuations are unsustainable and all asset classes are overheated at this point but I don't entirely understand your investment thesis.
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79 months ago
