Replies to post #2621 on Real Estate Bubble (RUBBLE)

[swampboots]

My Condo group is very manageable, as can be phone responded all over world once ya get to make friends with super for a 20th of any official prevailing management rate. Wish I was able to sell last property
and buy new Condos now as a trade as reasonable as 2009- 2011..

Trying to start a social media Co, wish I made enough money in Micro stuff to fund ( not going to happen), that is buy a small one (like BLIN) and imbed my application....as going the legit retail way is a money eating non-starter. Have to prowl the software patent lawyers to see if I can at least divulge my idea without being trampled by the out-smarters.
Well one step closer to BK or a peripeteia.
Saw your CUO DD, reminds me too much of AYSI, as my brain addicted to sparing with a lot of motion (ha, sometimes for naught). But your stuff had nice performance in old days, so I will be keepin an eye.

[swampboots]

Re: your reaction to lease back. I am posting here as others probably not interested.
I ran away from some lease backs like Red Lobster. It cost like 5 million and I would get 5.65 interest ( eye rolling to ignore the overpaying) in Northern Fla. for leasing out for 30 years with all the options they have, they would pay a 5% increase every 5 years...........but I realized that property was only worth 3 million on this triple net lease for Red Lobster......So I was overpaying for the property and if they went BK I would be out 2 million. Red Lobster was assured a stable leasing for 30 years,
and I considered myself a sucker if I signed the contract, as many buyers do not do that kind of DD..
At the time I thought interest rates would be lower, the 10 year was close to 2%, went down as low as 1.37% since, now about 1.55%... But I was not buying property, I was buying a bond dressed up like a Red Lobster.
So if a Co. sells their property for a premium and can lease it back for eons at almost same rent, it can be a great idea as a Co is assuring itself a stable lease while pumping needed cash into their working capital.

Now with the interest rate thing going for so long against consensus, I would have been ok ( if I bought the overpriced property), just as I would if I bought any historically low interest bond then, as I could unload the property now to another sucker, further sweetened by our current extreme low interest rate environment....... but that is like a pumper of a POS stock surprised later after he sold, his crap had unforeseen value.