mpav wrote:If you are intent on owning property, do so yourself and manage it yourself.
In defense of a investment like
First Leaside (but not First Leaside specifically) -- few individuals have enough resources to actually purchase the types of properties that First Leaside held in their portfolio, nevermind manage them.
From reading the report, the problems faced by First Leaside would also apply to a residential property investor -- the assets that are available in the marketplace are very overpriced relative to the long-term cashflow they provide. In many cases in FL's portfolio, the cashflow is actually quite negative. Which is a situation faced by many landlords in the GTA these days.
In those reports, I failed to see substantive evidence that FL's management was, in any way, crooked. Their assumptions were just tragically flawed, much like most homeowners in Calfornia believed that RE appreciation is perpetual.
Resources? Do you mean capital? If so you can buy a REIT. If you dont have enought capital to buy a commerical property outright, then you want to take part in something that is liquid, regulated, and has some type of oversight (equity market analysts etc.). If you dont have much money, and go into the private investments you will get creamed.
These companies pool resources to buy properties, risk is with the investor so they of course overpay. Again it aint their money.
I own several smaller properties and it is work, and it is challenging, so goes back to the princple if it sounds to good likely is....
I think these companies pray on peoples desires to "own" land/buildings as it is a big sign of wealth, also people will give money away if it means no work....I suspect lots of hard working people put money into these types of structures and just get killed.