This is proof that we all follow the herd (well most of us)

It’s not often that an LOL means I actually laugh out loud but today was one of those rare moments when I experienced an genuine LOL.  In reading an article in the Financial Post (‘The little guy can’t win’: U.S. families stuck renting as big investors pay cash to snap up homes) I found myself laughing out loud because it seems like only yesterday that the US real estate market (and other markets) were in a free fall.  Read it for yourself and see if you agree and experience an LOL.  Keep in mind I work with private investors who place their capital in real estate and work with borrowers who need mortgages for real estate (which means I also work with banks and lenders).  In 2008 and 2009 when the credit markets froze it was no laughing matter.  Investors couldn’t wait to get rid of properties and borrowers had a very difficult time refinancing their properties because banks and lenders made it hard to get approved.  Not even five years later this article points to a complete turnaround of market sentiment (and facts) which should remind us all that as a herd of people we will always magnify the highs and lows and continue to move together as one. Continue reading “This is proof that we all follow the herd (well most of us)”

So BlackBerry is selling some real estate. Is there a lesson here?

It’s all over the Canadian headlines today – BlackBerry (who owns more than 20 buildings and reportedly controls 15% of the total office market in Waterloo, Ontario) is selling some real estate.  Aside from the fact that many of us (myself included) are very disappointed to see where BlackBerry has ended up, are there some lessons here with respect to businesses owning real estate?  We quite often get inquiries from business owners who are considering purchasing real estate to turn their lease payment into a mortgage payment and hopefully build some equity for the future.  We are not in the real estate sales and leasing business but providing mortgages and loans to businesses is something we do all the time and here are some rules of thumb we have learned: Continue reading “So BlackBerry is selling some real estate. Is there a lesson here?”