Profit. Revenue minus expenses. There are some things you wouldn’t expect, like inventory doesn't count as an expense until you sell them. So frequently profit is actually higher than money in the bank and a lot higher than what owners get paid.
I wonder what the economics break down to. A lot of commercial loans are 5 year with a 20 year amortization for payments with the intent at 5 years to refinance.
So if you took out a loan 5 years ago you had high occupancy and low rates. I imagine a lot of investors are just going to hand it over to the bank and call it a loss.
The banks will want to get rid of it quick so they might find new investors who get a great deal on the real estate and have the ability to convert to residential. Still requires a big investment and a lot of risk.
We’ll see.
Lumberjacked
joined 10 months ago
Several months after Waymo