Commercial Real Estate Finance

Posts Tagged ‘dollars’

….about real assets.

1. What do Mark Twain and Johannes Gutenberg have in common?
2. What weighs more, a pound of gold or a pound of dollars?

More importantly, what do these questions have to do with real estate? Let’s see…

Mark Twain once wrote, “Buy land—they’re not making any more of it.” Let’s just assume, vertical development aside, that the amount of land is fixed. What, in your experience, is land denominated in? (i.e. what do you typically have to part with in exchange for said real property?) In 2006 you might have said, “a very large mortgage.” And, you might well have been right. Even still, what is that mortgage denominated in? Dollars.

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