Quote:
Originally Posted by dalakhani
You can't get condo financing in Nevada, Arizona, Florida and parts of california with Fannie Mae unless you have at least 20% down as an owner occupant and over 25% as an investor...if the condo is warrantable. Those condos aren't warrantable because of lack of presale and/or investor concentration. FHA is going to be the same problem. Considering those two entities make up over 90% of all loans closed and no bank is going to portfolio a loan for a vegas casino without 50% skin in the game, the fact that the project is doing the financing is to be expected. That will change as the market stabilizes.
Are you really going to compare gaming stock prices in 2003 to 2010 and blame it on city center? Come on Chuck.
They aren't far from profitablity. I can't help that you can't understand that.
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The arent that far from profitability. Ok.
They have already marked the condo prices down 30% and they had as many people walk away and give up their deposits as people who bought places. They have to provide all the financing for the few people that do want to buy. Thier centerpiece hotel opened and is 23% off the rest of the strip in occupancy. They have a $500 million dollar construction expense dispute.
So virtually no one is buying their condos. As many people walked away as bought. The few that did buy cant get financing anywhere else. No one is staying in their hotel. And you claim that they are close to profitability. I suppose that MGM stock should be a strong buy that $14 then? How much MGM stock do you own since you seem to be closing your eyes and wishing that all the bad news clouds would disappear?
I am not saying that City center was the entire reason that the stock tanked but the fact is that companies flush with cash will operate in a different plane than those who are having losing quarters.