Serious question here. Wondering since my RE education started in June.
I'm more curious what would happen to real estate investors, in particular, when the dollar collapses.
So that I can understand, can anyone tell me what would happen to my hypothetical syndication deal situation:
Six multi-family apartments: 800 total units
Combined purchase price of $30M
80% of it have been provided by Fannie Mae or other loans.
All in emerging markets.
Cashflow after taxes:$976,564
I have 0 of my money in any of them, because I syndicated the deal and own only 25% of cashflow and and appreciation for each of the properties.
1) When the US dollar collapses and a new currency becomes the world standard, what happens to these properties and the owners?
2) Do we lose them? People still need to pay rent, so just as the banks get their monthly payment, would anything really happen?
3)Don't you have to own the property free and clear in order for it not be affected by it?
PLEASE! No opinions about the dollar collapsing here. There are plenty of other places in the web for that. I would LOVE to hear from those with a large portfolio and have actually studied about the hyper-inflation and the collapsing of the dollar.
(If you're just guessing, please state so.)
