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Even if I don't pay in money, I have to pay in time and effort. Does the bank lend me that too? Furthermore, no Blackrock cannot do this in real life because in
by some_random 2y ago
Even if I don't pay in money, I have to pay in time and effort. Does the bank lend me that too? Furthermore, no Blackrock cannot do this in real life because in real life you are not0 _required_ to sell a thing to anyone.
Let me outline this simple hypothetical
I lease a plot of land with a parking lot on it. I spend a year of my time building a quadplex on it, financed by a loan, and get tenants in. After all my expenses, I am making 10k a month in profit! Next year rolls around, tell me what stops Blackrock from taking the lease by offering the value of the lease+9.5k per month and making their money in quantity? Down payment doesn't matter because they have so much more in assets than me that they can make use of a plot of land that generates less profit than I need to live on.
- James_K 2y agoWell then Blackrock would only make $500/month in profit. This is good, you found an actor willing to pay higher taxes for the same land and thus contribute more to the public purse.
- some_random 2y agoThe issue is that the value for all land in all cases trends towards zero. If you start making a profit you have to give the government all or most of it, if you lose money you just abandon the plot since the debt isn't attached to you. There's zero reason to ever do anything.