Recently Bank of America (BOA) conducted a survey that small business owners should prepare for a recession. The behemoth institution claimed that, “More than 2/3rd of business owners have taken steps for an economic downturn.” Forecasting is extremely important for financial markets and no one can truly predict what Mr. Market is going to do. Of course, finance pundits, companies or banks that have been in existence for more than a quarter of century can be a slight exception – why? Historically, having survived other economic downturn and recessions, these companies that lived thru the darkness of it and survived financially can be a resource for future outcomes. The key word here is “resource” not “certainty...Read More
As someone who has participated and underwrote various transactions in the real estate investment trust (REIT) space, both non-traded and traded REITs. I am often asked at certain real estate and business events about mortgage REITs or other components of REITs and what make this sector of the industry appealing. Of course, anyone who is associated with the REIT world knows about many advantages of a publicly traded REIT, which are quite different than non-traded REITS. Non-traded REIT are not on any exchange, and cannot be bought as a stock like a traded REIT that is listed on an exchange (i.e. New York Stock Exchange NYSE). The main difference is truly about the real estate objective.
I conducted a myriad of in classroom and field projects about many REITs (multifamily, retail, offic...Read More
The consensus among many non-business savvy investors is to avoid debt like a plague. It is not debt that is horrible. Au contraire, it is the use and cost of debt that must be looked at more profoundly. A good investment often requires capital or there may be a need for expansion, purchasing new equipment, inventory, refinancing, etc; and debt eventually will be part of the equation. Even when a business is operating at its ultimate peak, which is rare, and making significant profit for managers, and shareholders, there will always be a gap where taking on more debt may be applicable...Read More
When I was in high school, in Boston, I would take very long drives with my father during some weekend. Whether our destination was the supermarket, a shopping mall, a business meeting, he would always teach me something new. The teaching typically lasted about 30 minutes or an entire hour. It was always about some form of life lessons, failures and successes. On Numerous occasions I pondered why we were driving an hour away as opposed to 30 minutes to a nearby town instead. It was not until my college years and later in life that I realized what my father was doing. Not only was he imparting tremendous knowledge during these long drives but also behaving as a life coach and business mentor...Read More
On August 26th, there was an article in the Real Deal about Blackstone, the giant and big conglomerate global investment and advisory firm, with huge concentration on many private equity funds. Two days later I attended a small debt and equity forum and after the event a private equity guy (Mr. X is what I will refer him as) wanted to know my train of thoughts about Blackstone. Before I share my quick answer with you, there will be a link to the article at the end.
Mr. X: How are you? I noticed you asked a question during our short intermission about the current state of the economy due to devaluation of the Chinese yien...Read More