RE:RE:SCOOPED UP SOME SHARES OF MANY REITS Either the condo buyers are about to get bent over or we're getting the deal of a lifetime... I believe the condo buyers are getting bent over and the truth is somewhere in the middle.
Residential real estate was priced at a cap rate between 3% and 4%... Those who hold properties with cap rates below their cost to borrow (variable rates) are bleeding money just to hold the asset - whether they know it or not. We on the other hand, with an implied cap rate of ~8% and debt locked in for years, get paid to wait and the FCF builds further equity... as the price comes down, implied cap rates increase, distribution yields increase and risk comes off or additional risk is just merely appropriately priced in accordingly... as long as you have dry powder and are willing to deploy it, this is opportunity - not BS. I feel bad comparing a multi billion dollar enterprise to a single asset, but to each their own.