In this informal dialogue, Speaker A recounts a recent real‑estate pitch involving an $80 million portfolio of office buildings that were refinanced and heavily cash‑extracted. The properties are located in markets where remote work is reducing occupancy, and the seller is using tax‑benefit arguments such as bonus depreciation to entice a buyer. Speaker A points out that the seller has already taken out a large amount of cash, leaving the assets with declining occupancy and limited upside. When asked to be more flexible, the seller suggests adding leverage, prompting Speaker A to warn that applying leverage to a fundamentally weak asset merely amplifies its problems. Speaker B reinforces the point with a vivid “turd” metaphor, stating that polishing a turd and adding leverage makes it a more powerful turd, underscoring the core message that leverage magnifies the inherent flaws of a bad property.
