You're in a conversion at a loss (synthetic trades over cash). There is no insurance or hedge for the property investment. All you've done is lock in a loss on the conversion.
50% in real estate is a black swan IMO. You would find hungry buyers at 20%,let alone 25/35/45%. Commercial property needs to be invested in in the appropriate way,as part of a business plan. If they hit their business/production etc targets year over year then it will pay for itself.The targets should be identified before purchase.The hedge in my opinion is in the realism of the targets and keeping them conservative/worst case whilst evaluating.
DTLA commercial properties taking a 50% haircut in 13 years. Union Bank Plaza sold for 208 in 2010 and sold for 104 this year. AON prop took a 45% haircut in 9Y.
I'm not going to have value add deleted due to a 3X banned loser (Q-tip) posting an edge loss in a conversion arb on listed-shares as a "hedge" against a property investment. The ownership should stick to their knitting. This ain't it. Bye all.
I block everybody who is with the well known spammers here, liking their spam postings etc. Let me know if you want to be unblocked.
%% BUT that sellers[lenders one sided contract] of all the loan balance due if values drop\ sounds like a super buyers rip off, even more so with 100% RE gains already.[And the lender may, depending on contract, sue you for the balance if foreclosed] Also , some should consider learning about as much as a certified appraiser, but that's a long tern goal.....
%% Some had to sell @ that price{-50%-45%}; so buyers market. Location may have changed over the years, too many crimes ,CA taxes, +regs, +buyers exodus, most likely??
this is so funny cause i summed him up about a week ago and completely blocked his whining little bitch ass.