no just in general. but yes it’s a real estate subclass that i’m buying at those yields.
I am quite curious of what yields so much cash in the R/E world. Perhaps warehouses renovated into a loft or something similar ?
^I could tell you but I’d have to…you know.
Oh I see, surely you are talking about what you are doing professionally.
On a side note, I know a dude who bought a tiny student appartment in an obscure university city. If I remember correctly he obtained mortgage debt from a bank for 100 % or almost of the value of the appartment and the rent was enough to completely cover the debt service.
The appartment was ridiculously cheap, like 30 K€ if I remember correctly.
Since in Germany mortgage debt is with recourse, he wouldn’t have been able to do this ad nauseam and would have to provide equity at some point. I believe that he wanted to scale this gig and buy more appartments.
But as you mentioned, you need to know the particular market perfectly. Said dude was born in this town, studied there and even operated his own R/E administration firm as he was studying.
Maybe this little niche that he found will make him retire a rich man, who knows.