When investment firms can use previously purchased properties as collateral to help get more favorable interest rates than a petit boug will get, they kinda have a perpetual money machine.
For the smaller ones, sure, but I'd imagine that the bigger ones keep their cash under their beds and do everything in their power to only use other people's money to makes these kinds of investments. When the credit dries up, they will still have their liquid capital to take advantage of the fire sale on real estate.
When investment firms can use previously purchased properties as collateral to help get more favorable interest rates than a petit boug will get, they kinda have a perpetual money machine.
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For the smaller ones, sure, but I'd imagine that the bigger ones keep their cash under their beds and do everything in their power to only use other people's money to makes these kinds of investments. When the credit dries up, they will still have their liquid capital to take advantage of the fire sale on real estate.