HSBC BANK DELIVERES A GLOBAL LESSON IN REAL ESTATE

What a great lesson from HSBC on how to be profitable real estate.

HSBC Sold its headquarters building in LONDON for 1.09 billion pounds in May 2007 to a Spanish Company which agreed to lease them back at an annual rate of 43.5 million pounds a year.

Now they will buy back that same building for 838 Million Pounds. a 250, 000,000 pound profit. Hay anybody would be willing to deal with this kind of a weight gain in year ;-)

In addition to a nice chunk of profit at a time when banks struggle with write-offs, HSBC also gained its said 43.5 Million pounds the agreed leaseback they offered to their landlord.

It teaches us a very valuable lesson, That the primary goal of owning real estate is its gain and not just the idea of owning it. Although this s a Strong emotion it should come in secondary to profit.

Summary of lesson

• To sell when prices are high
• Negotiate a low leaseback so you can stay in the property for cheap rent (rent is cheap since everybody is buying hence rent is cheap)
• leave an option to buyback (hidden or unhidden)
• Buy before you are certain if the market is rock bottom or not, take your chance because either way you will make a huge profit. Waiting for the market to hit rock bottom is often impossible since we only know that the market reached its bottom is when it is already passed us.
• do it again and again and again

It is a great time to be alive it is a great time to learn investment's and real estate and it is a great time to take action

Sincerely

Joel Silberstein
Certified Mortgage Planner, CMPS
The Silberstein Group
917.660.3630
joel@Joelsilberstein.com
www.joelsilberstein.com