As a business owner, there were times when getting a mortgage was:
1) nearly impossible + turned down
2) rates are 1-2 points higher than normal.
The banks say my profile was too risky.
And yet, employees at my company easily qualified (and w/ a better rate!).
Stupid.
Nothing to see here, just a bunch of PE firms and SFR REITs acquiring one out of seven homes on the market (and one out of five entry-level homes). No way this will have any social or regulatory consequences. Keep moving along.
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A THREAD on how most real estate folks structure deals with outside investors.
Most people utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.
Here's the basics:
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People need to realize that large rounds of funding at high valuations aren't necessarily a win.
Every successive round of venture investment = dilution, expectations, and risk.
You wouldn't apllaud somebody who just signed up for their third high-interest credit card...
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The future of work as I see it:
- Management teams working together in offices in tier 1 cities
- Sales teams colocated in pods in tier 2/3 cities
- Engineering, product, support, accounting, legal, finance all remote distributed teams