The developers homestead:
You are a developer and make a lot of money splitting up lots and maybe even building homes on them.
You find a large piece of land that you would like to live on. Pick out the best piece for yourself. Start developing the rest and selling off lots or building homes and selling lots and homes together.
All your cost comes out as you sell through until you get to your homestead. You end up with a free and clear larger home on a larger piece of land than the rest of the neighborhood. You also didn't make a profit. It's all stuck in the inventory that is your home.
#realestate
#retwit
#realestatedevelopment
Na its just people using massive leverage and managing companies to outsized growth along with the leverage.
They are getting a small piece of the whole that they started with. They either borrowed or sold off parts as they went. Sometimes it doesn't work and they along with many others go broke.
Other times it works and they end up with tons of equity that would take a brain surgeon multiple lifetimes to earn.
@Charlesaf3@johnnydtweets Don't really know. One of them sold down the street for 1.7 million with a little less net operating income. But we don't have a cash buyer to go off of yet. So I made an offer that's better than his current situation.
Just made an offer.
Owner has a 4-plex in California. Selling at a 3 cap $2.25m. It's free and clear. He doesn't want management anymore. And it's got no offers in 3 months on the market.
I love 3 caps when I'm exchanging.
Offered for him to exchange into a 100k sf warehouse. We master lease nnn back at slightly higher than what he makes now and have a 15y right to buy back at $2.25m.
#retwit
#realestate
https://t.co/4CKX9EDJQK
Not exactly how it works.
The big thief is the government creating treasuries out of thin air. Those get bought or funded by banks which create new dollars. Those dollars get spent into the economy.
So basically it's like the government creating a situation where lots of pennies and dollars come out of millions of people's pocket and they land in the value of stocks and real estate of the wealthy. The wealthy didn't take it. But the government created a situation where they went from the poor and middle class and ended up with the wealthy asset holders.
Be mad at the government. Not the other group of people who didn't do the stealing in the first place.
@midbarinvest Not for them?
Get them out of management which they want.
Gets them an increased cash flow.
Gets them a fixed price on an asset worth more.