How poor white trash like this brought down the house

[Bob111]

Quote from Thermactor:

That commercial bothered me to absolutely no end when I first saw it in 2005.

how about roofers,driving escalade with tar tank attached to it? 2006

 

[tmarket]

"How poor white trash like this brought down the house"

I thought you were talking about these guys:

 

[Ghost of Cutten]

Quote from Dr. Zhivodka:

To change the topic slightly....the CMBS market is at highs for the year.

It's obvious the risk of commercial RE defaults were VASTLY over estimated.

God Bless America

At the lows yes it was. But commercial real estate prices got decimated, there's no getting around that fact - a 35% fall peak to trough since 2007, according to Moody's. Given that most real estate investors use leverage, the loss in terms of equity for a conservatively financed player using 50% debt, would have been a staggering 70%. Sure, some markets did better but some did worse - it was still a country-wide carnage, the worst for decades.

Also, bear in mind that we do not yet know if we have seen the lows. In the medium-term obviously we have. But commercial real estate in Japan peaked in 1990 and didn't reach a low until 2003-04, and in some areas 2008/09 saw new lows - 19 years after the top. Who is to say that real estate prices aren't at the start of a decade-long slump? Stocks peaked in 2000 and 10 years they will almost certainly be significantly lower, even if we have a seasonal new year rally. Given that real estate had a similar once in a generation bubble, then surely one has to expect that in 2017 average prices will still be way off their 2007 highs.

Patriotism is a dumb investment strategy - ask any loyal citizen of Japan over the last 20 years.

 

[aegis]

Stanley Johnson brought down the house: http://www.youtube.com/watch?v=hn5EP9StlVA

 

[IanMacQuaide]

Quote from stock777:

Even the end of the world is gamed by the insiders. I trust them as far as I could throw them and a 10,000 lb bag of cow dung.

The cow dung has 4 things going for it.
You can burn it to keep warm, use it to grow food or pretty plants, it's honest in what it is, and it smells better than the insiders.

 

[S2007S]

Quote from ashatet:

I know a lot of these agents were so busy selling homes and collecting their share of the loot, that many of them were driving 50K cars and sipping red wines every night and complaining about too much work. Does anyone here believe that these real estate agents do real work, I mean they open the lock of the house and show it around, and how come that cost 1000s of $s in commissions, that was earned 1$ at a time.

Amazes me to see that they still demand 4-5% commissions for showing a house, most of open houses I have been to, the brokers were totally worthless. They remind me of those pathetic car salesmen. I think the effort a broker puts in is worth no more than maybe 3/16th to a 1/4 of the sale of the house and no more than that. If they work a little harder than the average agent maybe 1/2%.

 

[aegis]

Quote from S2007S:

Amazes me to see that they still demand 4-5% commissions for showing a house, most of open houses I have been to, the brokers were totally worthless. They remind me of those pathetic car salesmen. I think the effort a broker puts in is worth no more than maybe 3/16th to a 1/4 of the sale of the house and no more than that. If they work a little harder than the average agent maybe 1/2%.

On seller's side, I agree. You can pay the MLS fee and list it yourself.

However, some potential buyers insist on looking at dozens properties over the course of several weeks or months before they make a decision, if they decide to purchase at all. I wouldn't put up with that crap if I wasn't going to make some money on my other listings.