OUT OF HOUSE & HOME
By Jim Macklin
Secure Document Research
Well, it has become official, Wall St. is now actively orchestrating the coup d’état. Major firms like Blackrock are setting up shop throughout major metropolitan areas of the U.S. with boots on the ground in an attempt to own and rent/lease properties back to the very souls from whom they stole in the last several years.
Pouring cash assets into the Net Lease Real Estate Investment Trusts seems like a sound business idea, except for one thing…the concept of owning real estate at this time for long term investment purposes does not align with the 20 year long term run-up of property values.
Remember this fact, the investment firms that are playing God with other people’s money don’t really care about the ROI for their investors, all they care about is selling positions or shares or certificates to the investment de jour. So if you invest $100 million in REIT’s but the long term projections for increased valuations of your portfolio have already reached the anticipated high, you are literally putting your money into a pool that pays you back for the use of the money, minus the fees in and out. Not to mention the fact that there is no possible way to project what a given administration’s policies will be in even 5 years. Tax treatments can, and often do, change.