Originally Posted by
Richard
Seriously,if you could buy a building for 5 million,sit on it for a couple of years while spending little and flip it for 60 million,and view it as not a wise move?
Actually he probably did not even spend the 5 million in cash,it was proably with a bank loan.
People buy and flip houses everyday,they are not doing it because they want to improve the city,they are doing it to make money,it’s a business.
It does not mean you have to agree with it,or even if it is right,it is what it is.
One can not say what a greedy butthole,because they buy products every day that makes people multi billionaires,so they must be greedy as they also profited.
I understand what you are saying,I parroted here during the bankruptcy when everybody thought Detroit would no longer exist and everybody was so quick to give up city accets based on today and not what the future would bring.
The city had some really strange ideas in the past,that to me actually encouraged speculation and led to the needless demise of many of its historical stock.
I also agree cash envelopes played a role.
Honestly that whole thing of any project over 70 million has to provide millions in social services,killed this building no matter who owns it and any other large buildings in the city,not everybody is like Ford and can write off millions.
Anybody going to the bank or in front of investors is going to be hard pressed explaining why there needs to be another 10 million added to the top for social services,let alone make many large projects no feasible.
One figures the city would be doing stuff to encourage investment in buildings like this and get them back on line but all they are doing is repeating destructive polices of the past,that brought you here in the first place.
Detroit is special but when you are looking at investing 100 -150 million into a building countrywide there are a heck of a lot of buildings out there that will show immediate results or return on investments.
You can buy something ready to go without the headache of a restoration and see the same returns.
When your own pension funds are buying in Florida instead of your own city,it might be time to be looking at,why?
What can we do to change it does not include,tack another 10 million on the top for social programs.
It actually devalues buildings like this which leads to devalued finished buildings in the city.
Unless somebody has really deep pockets,this building is still only worth 5 million,because if you are to buy it with the intention of restoration,you would have to keep it under the 70 million threshold.