Real Estate Developers – Are they a better bet than your deadbeat neighbor?

In Sunday’s New York Times, Charles Bagli writes a story discussing how New York real estate developers fail with amazing regularity and never face the consequences from their lenders. The story discuss both Harry Macklowe and his erstwhile son-in-law, Kent Swig without mentioning the relationship, but I guess Mr. Bagli is too close to the Macklowes to tie the two failures together. This amazing fact is true because those with money to invest seem to think these fools who buy buildings can never lose money. Amazingly, they always seem to lose money. The better question is why does cash run to these showboaters with no ability to make you money? Beats me.

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