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

To: John Vosilla who wrote (47441)	1/20/2006 6:01:50 AM
From: Micawber	Read Replies (2) \| Respond to of 306849

What is scary when compared to today is the prices weren't that unreasonable then (9% cap rates) and the mania was more confined to what was suppossed to be the smart money developers and institutional investors<g> Sorry, John, but I was there, and the ACTUAL cap rates were way less than 9%. The projected cap rates that promoters were waving at lenders were 9%, with IRR's in the 15% range. Looked great on paper, and every lawyer, doctor, dentist and chiropractor were calling themselves office developers. And when the bubble finally burst, all the pundits who missed the climb were saying it was the mother of all bubbles, and there wouldn't be another office building built for decades. Sound familiar?