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This is a very interesting article. Being in the private lending and real estate business I can understand how more and more HNWI are moving away from the large institutional banks and looking for something that is less regulated, more interesting and potentially higher returns. Conversely, however, these same HNWI are the primary reason that funds like Blackstone are buying up every available SFR for rental returns. Often at a premium at or above MLS. This hurts the smaller investors who can't afford, or are smart enough not to buy, such a high purchase price. As they drive up the cost of property they eventually hurt themselves since they now have a significantly under performing asset. So is this an early indication that the big REITs are on their way out and collapsing? Or just a minor bubble burst down to realistic levels?
In general I would think that working with a private bank is a better move for everyone since they are more apt to work with an individual to give them the right service at the right time. However, most people are probably not sophisticated enough to handle the choices and should be with WF or BoA. I wouldn't want them to get taken advantage of. Though the big banks haven't had a good track record of that lately either.
And where to find these private banks? I would like to think that I'll be one of those people with over a million to invest and need this. But in the mean time I have smaller resources and needs, but see the value in working with someone like a private bank that can help catapult me into the next level.
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