REI155: Building a Boutique Property Empire w/ Moses Kagan
The Intrinsic Value Podcast - The Investor’s Podcast Network
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The Loan to Value Ratio Is a Red Herring
The whole loan to value thing is a red herring. The last thing that you should be thinking about is what some appraiser thinks of value. Real estate is largely a fixed cost business, by which I mean your expenses do not change relative like depending on the rents. If collections come down 20%, net operating income doesn't come down by 20%. It often comes down by a lot more than that.
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