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>> Those that would have benefitted from a massive real estate firesale would have been savvy 0.1 percenters. And many of those buildings would flood the rent
by icelancer 8y ago
>> Those that would have benefitted from a massive real estate firesale would have been savvy 0.1 percenters.
And many of those buildings would flood the rental market, driving down consumer pricing and enabling affordable rents.
- geezerjay 8y ago...or just sit idle in a portfolio until the market bounced back, which is what happens in large real estate investments.
- ashelmire 8y agoThat’s not true at all. I worked at one of the big pe firms that made lots of money from 2008. Their goal was to move things to profitability asap. Either get a loan to performing (via getting holder to repay or rent), sell the note, or foreclose and sell the property (sometimes to a sister company). Same goes for anyone holding a property. Empty properties are targets for squatting and quickly fall into disrepair. The last thing a savvy investor wants is a nonperforming property.
- EADGBE 8y agoI think parent's comment was about large real estate investments. Which can often sit idly for years before being sold/reinvested for a profit.
- JohnBooty 8y ago...and a massive plunge in real estate values would probably cause a lot of existing property owners to be upside-down on their holdings, forcing many to sell and/or default on their mortgage/debt repayments, which is sort of how this got started in the first place
- deleted 8y ago[deleted]