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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (589)	8/29/2001 9:41:46 PM
From: Geof Hollingsworth	Respond to of 306849

A long and mostly off-topic story at the end of a long day. Those of you interersted in any relevance should reach for that "next" button about now, but this is a REIT thread, right? I had a relative who was a professor of real estate, and he had a favorite story about his REIT experience. He wound up on the board of one of the early REITS in the 70's, I suspect when they were looking for respectability for the public offering. They wound up in bankruptcy (who didn't?), and at the board meeting to approve the annual results was the traditional motion to appoint the auditors for the coming year and to set their compensation (something like $250K). He (unexpectedly, I am sure) asked why not do without the audit? The management sputtered and stammered through some unsatisfactory reasons, not having come prepared for such a question, and finally someone asked "What would we tell the Shareholders"? Tell them "We lost a lot of money last year. We're not sure how much, but it was $250K less than it would have been if we could give you a precise number!"