Delete comment from: Captain Capitalism
Fair Enough,
But isn' real estate development, (done right & honestly ) as valid as anything else?
I mean you borrow X million, spend it on land, materials, design & labour, inc. your own. You get some houses on nice lots for the purpose of selling the development for $ (X + Y) million so you can pay back X and keep Y.
How is this technically different from Corporation Q borrowing X million, building a factory, and earning $ (X +Y) million, so they can pay pack X, and keep the Y for distribution to the grateful shareholders.
In both cases you may guess wrong and Y is very small ,or worse , negative.
Of course, I am assuming you aren't being idiot, in your estimations of market, etc...
Oct 1, 2008, 11:31:00 PM
Posted to Ode to Tom Petters