The real estate fallout from the Madoff scandal is getting uglier and is involving some of the biggest, most sophisticated real estate investors in New York.
The New York Times reports, "Many developers had pledged their investments with Mr. Madoff as collateral for projects, and are now worried that their banks will call in their loans."
Worse, some developers may not be able to complete projects as planned. In other words, they’ll have to find more money fast in an environment where banks are not thrilled with loaning it out.
Let’s not forget 2009 will be the year of the recession, which brings me to my thought for today.
Actually this is a strong real estate investing principal.
Always do your due diligence.
Let me repeat that. Always do your due diligence.
Nothing can ever substitute the shoe leather hitting the sidewalk, as good police detectives like to put it.
It’s not enough just to know someone by reputation, and how well they mingle at the local country club.
You need to always ask lots of questions.
When those answers come, don’t stop. Turn over every rock.
Your money, reputation and real estate future are on the line.
Never forget even the richest, most sophisticated amongst us can still be taken in by a scam.