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2015 May Have Been The Top

there re a confluence of events now that may cause the value of US real estate to flatten or even decline in 2016

By Joel Ross | Updated on December 13, 2015

There are mixed signals coming from China now. The head of Fosun is the latest CEO out of 30 to “disappear”.  In China when you disappear these days it means you were arrested by the anti corruption police and the next time you appear, may be many months and in prison. We have no idea why this executive was arrested, but they were major investors in US real estate, and this will surely end that for now. At the same time there is a new clamp down on capital outflows. To move capital legally for investment in CRE you need to file a very long questionnaire,  and then be interrogated going back over your last 20 years of how you, or your company accumulated al this capital. These are questions most do not want to have to answer as most of the investment capital was accumulated in questionable ways. Many investors in EB5 are officials who got rich through corruption. The same is true o bankers where it was common that to get a real estate loan you gave the banker 10% equity interest in the deal.

 

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