Call it creeping socialism?

Discussion in 'The Back Room' started by BuckeyeT, Feb 4, 2009.

  1. BuckeyeT

    BuckeyeT Well-Known Member

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    In all seriousness, the single greatest risk to such an approach would be the whole moral hazard issue.....let's not forget that at the very core of this mess stands somebody who borrowed money from a third party and now either can't or won't pay it back. We can argue all day, have and will, about who is at fault in that regard, but to be sure, we are where we are because a large number of people borrowed more than they can repay.....if we were to now make them whole, what incentive would they have to not engage in such irresponsible behavior?

    Not unlike the moral question of, if we were not cast into eternal damnation for our sins, there are many sins that would get alot more business!!!!

    It is an extraordinary environment....when I'm not talking to you guys, among other things, I'm a partner in an opportunity fund with a group of other investors buying distressed debt and foreclosed properties from banks throughout the southeast. The amount of vacant land sitting idle that was bought for the purpose of speculative development in Florida is staggering.....enough residential lots to house the entirety of the Chinese nation. The good stuff is being bid at 30 cents on the dollar. Stupid bankers to be sure, stupid borrowers as well.....that is just an example of where we are.....it has to be painful or they'll return sooner than we would like.....for me and my partners, it is a target rich environment.
     
  2. George Krebs

    George Krebs Well-Known Member

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    I appreciate your candor. My plan would drive a stake through the heart of your new endeavor. Or would it? 8)
     
  3. BuckeyeT

    BuckeyeT Well-Known Member

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    ....we are focused almost exclusively on commercial and multi-family real estate assets. Your target is single family homeowner, so I think we're safe for now. :D

    We are actually trying to get our hands on a building in TOK's neck of the woods.....hell, might be in his neighborhood! :shock:
     
  4. Terry O'Keefe

    Terry O'Keefe Well-Known Member Administrator

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    My Building is a Class A property and I have heard it's for sale. Located in what is called the Energy Corridor. It's in very good shape, even for a Bldg from the 80's.

    11757 Katy Freeway. Let me know if your going to be my landlord! :)
     
  5. BuckeyeT

    BuckeyeT Well-Known Member

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    :lol:

    No...the building we're looking at is on the water off Nasa Pkwy. It's a residential building so you're safe for now....unless you live there! :twisted:
     
  6. Terry O'Keefe

    Terry O'Keefe Well-Known Member Administrator

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    If it's on the water down by NASA (Clear Lake?), are you sure that it's still standing? :)
     
  7. BuckeyeT

    BuckeyeT Well-Known Member

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    ...it is on Clear Lake and it did take a whack, nothing structural.....but it is still standing and if we can steal it, it's a nice property. But does need a little tlc....