jadel, appreciate your comments liquidity is main concern
Am I right in saying that it is only when the borrower of the loan (ie the property owner) cant repay the interest is when the loan can go bad? If this is so then surely as long as the rent is being paid to the owner (and supposedly they are mostly A grade tenants) who then pays the interest -- this means it is unlikely that the loans will be called in and thus a loss is crstalized?
If so we get back to liquidity and how far the loans may get marked down and thus force margin calls. If they can only sell one major property - or some of the loans , they would then be pretty safe.
Granted in current market is tough but there is a chance if they offer decent discount(not too much)
I wonder if the recent Feb action may loosen some purse strings
REU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
