Subject: Difficult situation
Dear Investor,
I need to be direct. Our property is under severe pressure.
We refinanced at the peak, maximized distributions, and skipped on capex. It felt good at the time, but now the shine is gone.
Cash flow barely covers debt service. Expenses keep climbing. The loan is coming due, and the bank will not refinance it.
Our options are limited:
1. Put in more money.
2. Cut spending.
3. Refi with sharks and watch cash flow disappear.
4. Kick the can and let our kids deal with it.
None of this looks good, but, unless someone has a printing press, I don't see another way out.
Sincerely,
Sam Wilson
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PS — Is this where the United States government stands today? The surge in gold and crypto raises real questions about reserve currency status, and what that could mean for the value of the dollar and real estate.
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