How much did he pay to buy those buildings in cash? That seems like key information to allow readers to draw conclusions.
What was the market value for them?
The frustration of trying to invest in my hometown
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Re: The frustration of trying to invest in my hometown
#12It’s especially frustrating when you see how banks will fund SBA projects for fad businesses like cupcake bakeries that are unlikely to be in business in 5 years. By then, the bank has made its profit and can dump the loan on the government.
Why is this frustrating? The banks make a profit this way, just like you described. They are not public services. Banks that operate with alleged "systemic racism" are bound to lose out on profits to banks that don't, therefore the case for it isn't very strong in this situation.
Re: The frustration of trying to invest in my hometown
#13Would be great if all that "funding" that the banks send to the activist BLM organization be rather sent/loaned to individuals such as this one to actually develop and promote neighborhoods that needs some personal love and actually foster the change that we all want to see.
Re: The frustration of trying to invest in my hometown
#14When he says “historic”, the bank thinks “decrepit.” Unless they building is the Empire State Building, age hurts value.
Seriously, the fact that he had the cash to buy the buildings but needs a line of credit against them to develop them tells me that the value of the buildings was quite low to begin with.
Re: The frustration of trying to invest in my hometown
#15It’s especially frustrating when you see how banks will fund SBA projects for fad businesses like cupcake bakeries that are unlikely to be in business in 5 years. By then, the bank has made its profit and can dump the loan on the government.
Why is this frustrating? The banks make a profit this way, just like you described. They are not public services. Banks that operate with alleged "systemic racism" are bound to lose out on profits to banks that don't, therefore the case for it isn't very strong in this situation.
They are not public services.
And yet the public does bail them out which suggests a symbiotic relationship with the economy and that banks have some responsibility to the greater whole.
Re: The frustration of trying to invest in my hometown
#16Doesn’t this represent a huge potential financial opportunity to whoever can figure out how to properly recognize the value in these places/owners? What’s stopping some forward looking bank from doing so?
Re: The frustration of trying to invest in my hometown
#17Thanks BLM!
Re: The frustration of trying to invest in my hometown
#18The title is misleading at best. He wants the banks to invest in his buildings. Which they don't want to because they don't see it as profitable.
"You don't want to give me money? RACISM!" - USA 2020
Re: The frustration of trying to invest in my hometown
#19If a building has tenants it's straightforward to value it, no need for comps or sqft calculations.
Assuming no major repairs required.
Re: The frustration of trying to invest in my hometown
#20The title is misleading at best. He wants the banks to invest in his buildings. Which they don't want to because they don't see it as profitable. "You don't want to give me money? RACISM!" - USA 2020
What point are you trying to make? The article makes it pretty clear:
It didn't happen and Mr Rice believes the fact that Ensley is a black neighbourhood was the main factor, especially after being asked questions about the "demographics of Ensley".