Oddbean new post about login | logout For those who don’t want to do the math, that’s a 97.5% loss for the owners. This was done at auction, extended 3 times, and with the sellers having to lower the reserve price just so the sale would go through… People have no idea how much this could be affecting the banking sector, but has been allowed to go unadjusted on balance sheets. There are banks with *enormous* exposure to commercial real estate, and so much of it looks like this. I don’t know the timeline because it depends on tons of govt and fed “guarantees” and reporting rules which have been altered to help cover this (and a lot of other problems) up, but this will blow up at some point. (Here’s a fun little graph showing possible exposure from recent years) https://i.nostr.build/hYhCqzSDNWiUsHOd.jpg nostr:note1g36hengtfljpuznqf29vtjd6w52q2skh9wrvfhdmpq8h0hy8grfqekdk5k
I hate real estate as an investment. My wife has a website where we just bought a bank owned apartment in Brazil for 40% of Market Value. It cost less than $14,000 US. It is 8 minutes to a very nice beach and in a desirable area of Joao Pessoa on the North East coast. I know it is probably not worth even $14,000, but I sealed a retirement home for Pennies on the worthless dollar.
Companies near me are buying brand new furnished office buildings and demolishing everything for industrial use
Suspended reality. Crazy to watch.
Are you interested in investing in bitcoin mining? Here is the opportunity to start earning large in crypto mining using my platform and strategy. Just a Dm away from your financial freedom
I've watched cre/proptech for 15 years, and after decades of being almost entirely analog (phone, paper, and spreadsheets), something is changing. The covid/office crisis was a huge lesson that even this billion-dollar industry can’t maintain the status quo. The trick with real estate is that we build for decades, while the world changes overnight. real estate can’t adapt as fast as tech requires. CRE 3.0 is a concept of the industry’s progress, making it robust to the world’s pace. Transparency is the key - and that’s exactly where CRE should learn from bitcoin, #nostr, and similar innovations.
