Property Grunt

Monday, April 25, 2005

Babs on the Bubble

This is not a joke. Straight from the Real Deal



Corcoran, who sold her company to conglomerate NRT in 2001 for $70 million but retains the post of chairman, also weighed in on the prospect of a housing bubble.

"Of course there's no bubble," she said. "I think the bubble theory is nothing more than an intellectual expression of people's typical worry that good times can't last forever. When your marriage is going well, you worry there's a problem on the horizon. I think it's more psychological than fact."



Sigh. And this is from a woman who admits to investing conservatively according to the New York Times.



"I'm a rather timid investor," Ms. Corcoran said. "I'm always trying to buy for a bad market."

Ms. Corcoran likes to buy small buildings, "usually three- or four-story town houses with tenants in place." In a typical deal she gets financing for up to 75 percent of the purchase price and seeks properties where she knows that she can cover her monthly costs, even if rents are low. If there is a little profit left over after mortgage payments, taxes and other expenses, so much the better, but enhancing cash flow is not the goal. "I'm looking for a retirement fund so I can sell the building 10 or 20 years out," she said.