QUOTE (testerone @ Feb 16 2009, 07:57 PM) It is frustrating that Thomas` comments had to be entirely removed.
On what grounds?
Was League Assets invited to post a reply?
This is after all a public forum and would-be investors are not well served by this kind of censorship (similar censorship by League has occurred on a blog sponsored by Canadian Business)
Information that is false should be removed, information that is correct should stay.
Thomas, I hope that you can re-post your comments in such a fashion that it is useful to potential investors without being inflamatory.
League is relatively new, however, they are not a small player in this business.
It is therefore important for REIT investors to know whether League business practices are entirely above board.
You should ask yourself with any investment:
a) are unit valuations properly set in light of the current facts, such as: we have a recession, rising CAP rates, higher interest rates on commercial properties, defaulting retail tenants and thus, lower valuations of shopping centers
b) are the distributions sustainable from income of properties, sales of properties or re-financing .. or are they augmented by funds raised from new investors ? Are the distributions properly reflected in unit valuations ?
Example: if you give me $100,000 .. I can pay you 20%/year .. no problem .. for 5 years ! however, I have to adjust the unit value accordingly ..
c) can mortgages be re-financed in light of rising CAP rates, and thus lower valuations, and higher interest rates ?
d) Are unit values based on current appraisals or old appraisals .. and "old" in this current climate is more than 4 months old ..
Do your due diligence .. for any investment ... be it ours, League`s, stocks, bonds, private syndications, ... I cannot and will not comment on private or public (REIT or stock or LP) financial position here .. look at their books before investing or ask them the right questions ..
