[quote=CA renter]
Stay strong, Kev. As you probably already know, these “all cash” buyers are often leveraged. Just because they aren’t using purchase mortgages, don’t be fooled into thinking they are actually using 100% unleveraged funds. Not only that, but they will have redemption requests at some point. If they are leveraged on top of that, look out.
[/quote]
Any evidence of this? I’ve only seen a few private equity prospectuses, and those that I’ve seen do have provisions allowing leverage, but there’s no indication it’s in their plans, and their structure makes borrowing highly problematic. And they have no redemption provisions. Sales of the properties lay entirely at the discretion of management. I don’t doubt it’s possible, I’m just curious why you think they’re leveraged and what the structure of that leverage is.
