Land Rush

[Gaspar]

I just learned that several local and national development firms are looking to liquidate property in a hurry, and on a massive scale.

I had a meeting with a developer who said that the big investors are lowering their acceptable margins and becoming liquid because it will be cheaper than facing increased capital gains taxes.  He said we will see it all over the country.

The larger tracts and buildings that now pose more of a liability than an investment.  No one wants to hold on to them.

If smaller developers can figure out how to get the capital, it would be a good time for development/demolition/rehabilitation.  The problem is that banks will not loan to small developers. 

Question: If the banks see more profitability in land development than land investment, does this change the way they are willing to loan, or is the market still to volatile?

[fotd]

I just learned that several local and national development firms are looking to liquidate property in a hurry, and on a massive scale.

I had a meeting with a developer who said that the big investors are lowering their acceptable margins and becoming liquid because it will be cheaper than facing increased capital gains taxes.  He said we will see it all over the country.

The larger tracts and buildings that now pose more of a liability than an investment.  No one wants to hold on to them.

If smaller developers can figure out how to get the capital, it would be a good time for development/demolition/rehabilitation.  The problem is that banks will not loan to small developers. 

Question: If the banks see more profitability in land development than land investment, does this change the way they are willing to loan, or is the market still to volatile?

Cap gains taxes? That's a load of crap.

The market in real estate will suck for years. The banksters played too lose to profit in the long run.

A few banks were smart. But the majority let loose the reins.

And yes, all over tarNation we will see properties unloaded. Give it 5 years....maybe some opportunities. But it looks like a 15 year hangover in supply. Not a pretty picture.