|
Middle Tennessee | So I have read much about Chinese shadow banking, and the ways in which it may be promoting bubbles. I am visiting home at the moment in the PNW, and the cannabis must be helping things here because it feels like a boomtown.
Anyway, I have multiple friends in the construction business, and they are speaking of current prevalent financing schemes. Developers are taking 2-party loans structured with guaranteed 20% annual return, I actually have friends in S. California who are investing in one for construction here in the Seattle area.
So why the hell are these guys paying 20% on capital when the going rate on credit cards is like 5? | |
|
Shadow Banking in US real estate
