@ClarenceWongCRE@realEstateTrent Thanks for taking the time to explain this.
I’ve always wondered what happened after a building becomes stabilized. The debt that built it has to be paid back eventually.
Appreciate it!!
@ClarenceWongCRE@realEstateTrent Right, but why would someone buy something at 6% at all? Why dump all that money in just for a 6% return? Seems so confusing to me. Why don’t they buy something with value add juice to squeeze themselves…?
@realEstateTrent Of course it’s less risk but why invest that way rather than do value add?
Seems silly but really have been wrestling with this in my mind…
@RandallHouseRE Well, yeah the property seems great but help me understand why someone would buy it if they’re tying up a ton of money for 7% on their money and there’s not any value add whatsoever?
Genuine question.
@realEstateTrent Was wondering the same thing a couple days ago…
Doesn’t seem to be any public info on it.
I don’t think anyone even knows their x number so not sure how that works 🤣