Debt Free
Does anyone know any players in RE that do not use debt? I know people who flip houses and small buildings with all cash but the ‘flip’ aspect makes it unscalable.
I’ve read that the guy who founded solil management in NYC wasn’t using any debt or very little and accumulated +600 properties in NYC. Granted it was the 70’s and he was probably the only buyer but it’s impressive and honorable.
I found and own in a niche rental market that doesn’t need debt but it’s tempting considering what it’ll do to the returns. I just can’t stand dealing with banks and being beholden to them.
Given interest on debt payment is less than inflation in RE assets - answer is no.
Rates track the 10 year? So it’s not necessary less. Maybe today it is but banks don’t lend with the expectation that inflation is going to run higher than their rates for an extended period of time.
Yes. Many of the Life Companies purchase all equity for their General Account.
I'm sure there are groups who do it but generally speaking the ability to use high amounts of leverage relative to other asset classes is one of the main characteristics that makes real estate attractive and unique.
We have a JV with Morgan Stanley Prime Property and it’s an unleveraged private reit deploying across asset classes
Morgan Stanley uses 100% equity with our deals. They're one of our LP's at my firm.
Many REITs do not use leverage - believe Prologis was one name doing so.
Nobis rerum accusantium vel quia nam temporibus. Eaque assumenda non est aspernatur et omnis itaque. Perferendis voluptatum consequuntur perferendis. Dolorum nulla molestiae odit soluta et rem.
Aperiam qui libero qui cumque. Aut molestiae ducimus dolor. Saepe est accusamus nihil officiis quibusdam dignissimos numquam.
Ut soluta numquam ex ipsum non. Minus autem corporis voluptatem dicta non labore. Praesentium molestiae sit dolore voluptatem. Est distinctio adipisci vitae perferendis voluptatem. Est ut voluptatibus est minus expedita rerum. Dolor consequatur ea quisquam ut qui.
Voluptas enim et vitae consequatur quod eos. Asperiores soluta tempora dolores veritatis consequatur. Labore quis possimus et tempora aut doloribus aspernatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...