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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33932)	3/25/2009 4:06:47 AM
From: Madharry	Respond to of 78753

im not sure that the leverage is really 1/6. because I think the private investor only puts up 8% of the money. In fact I think this sounds like such a good deal that I might try this myself. It seems to me though that there is so much room for fraud and borderline fraud here that I predict that the taxpayers will lose a ton of money on this. Not only will the banks take advantage of this but so will contractors, people in the construction business etc. they can buy properties, renovate them charge the SUV big bucks for the restoration and then lose money on the sale of the properties. They may ultimately lose their 8% capital but recoup it many times over in fees for the contracting work. None the less this should help revive the economy in a big way but not sure this will do anything to stabalize housing prices. Should be really good for lawyers and accountants though.