3 ms·

Only the truly innovative can lose money by being landlords.

tyingq 8y ago
Curious if they are even landlords. Aren't they just subleasing, such that no equity (of theirs) is being paid down? Or do they actually own the buildings?
- koolba 8y ago
  It’s the corporate version of what many small individual real estate investors were doing in the lead up to 2008.
- shereadsthenews 8y ago
  If you hold the master lease on a space with the intention of subletting, you are a landlord. We can even argue about whether, under a triple-net lease, the owner or the tenant has more skin in the game.
  - tyingq 8y ago
    I mention it because it's notable that they aren't gaining equity whilst losing cash. Just losing cash. And this comment is worth looking at: https://news.ycombinator.com/item?id=19488219 https://news.ycombinator.com/item?id=19488219
- jacques_chester 8y ago
  In common law, for historical reasons, leases are recursable. That said, the basic mechanic has been the subject of substantial legislative tinkering in pretty much every common law jurisdiction in the world.
keiraarts 8y ago
The CEO is in a great position! https://www.wsj.com/articles/weworks-ceo-makes-millions-as-landlord-to-wework-11547640000 https://www.wsj.com/articles/weworks-ceo-makes-millions-as-l...
- sjg007 8y ago
  The Trump playbook.
- lucisferre 8y ago
  Turning billions into millions!
  - kgwgk 8y ago
    Turning billions of other people's money in millions for yourself is not that bad (for you).
- opportune 8y ago
  I’m getting paywalled but from the small blurb I’m reading that seems pretty fucked up. If you were a smart investor you wouldn’t give him the explicit green light but instead use it as a hedge the business fails so you can sue him for embezzlement
- Traster 8y ago
  This is what really confuses me. If the business is successful, this bullshit will be small beans and his wealth in wework will make him incredibly wealthy. So there's no upside to doing this if the business succeeds. If the business fails, not only will he have no wealth from the company, you know sure as shit someone will come after him for these shady practices, putting him in extra trouble.
  - humanbeinc 8y ago
    No. No one is coming for him. And we all know it.
baursak 8y ago
I don't think they own most of their locations. They're just leasing long-term and subleasing short-term.

Curious if they are even landlords. Aren't they just subleasing, such that no equity (of theirs) is being paid down? Or do they actually own the buildings?

koolba 8y ago
It’s the corporate version of what many small individual real estate investors were doing in the lead up to 2008.
shereadsthenews 8y ago
If you hold the master lease on a space with the intention of subletting, you are a landlord. We can even argue about whether, under a triple-net lease, the owner or the tenant has more skin in the game.
- tyingq 8y ago
  I mention it because it's notable that they aren't gaining equity whilst losing cash. Just losing cash. And this comment is worth looking at: https://news.ycombinator.com/item?id=19488219 https://news.ycombinator.com/item?id=19488219
jacques_chester 8y ago
In common law, for historical reasons, leases are recursable. That said, the basic mechanic has been the subject of substantial legislative tinkering in pretty much every common law jurisdiction in the world.

keiraarts 8y ago

The CEO is in a great position! https://www.wsj.com/articles/weworks-ceo-makes-millions-as-landlord-to-wework-11547640000 https://www.wsj.com/articles/weworks-ceo-makes-millions-as-l...

sjg007 8y ago
The Trump playbook.
lucisferre 8y ago
Turning billions into millions!
- kgwgk 8y ago
  Turning billions of other people's money in millions for yourself is not that bad (for you).
opportune 8y ago
I’m getting paywalled but from the small blurb I’m reading that seems pretty fucked up. If you were a smart investor you wouldn’t give him the explicit green light but instead use it as a hedge the business fails so you can sue him for embezzlement
Traster 8y ago
This is what really confuses me. If the business is successful, this bullshit will be small beans and his wealth in wework will make him incredibly wealthy. So there's no upside to doing this if the business succeeds. If the business fails, not only will he have no wealth from the company, you know sure as shit someone will come after him for these shady practices, putting him in extra trouble.
- humanbeinc 8y ago
  No. No one is coming for him. And we all know it.

baursak 8y ago

I don't think they own most of their locations. They're just leasing long-term and subleasing short-term.