Posted on 07/27/2022 5:19:47 AM PDT by MtnClimber
Major financial investors on Wall Street have set their sights on a new target for acquisition, buying up mobile home parks across the country only to raise the cost of rent and other fees that mobile home owners must pay.
The Daily Caller reports that such investors include private equity firms and real estate investment trusts. These buyers have turned to purchasing mobile home parks and raising rent for tenants who are either stuck at a low income or are actually disabled.
One state that has been affected is Minnesota, where out-of-state purchases of mobile home parks nearly doubled between 2015 and 2021. In 2015, just 46 percent of the state’s mobile home parks were purchased by out-of-state buyers; in 2021, that percentage skyrocketed to 81 percent. Over the course of that six-year period, rent at such parks rose by as much as 30 percent.
In Iowa, Assistant Attorney General Benjamin Bellus claims that the number of complaints from mobile home owners has increased “100-fold” in recent years.
“These industries, including the mobile home park manufacturing industry, keep touting these parks, these mobile homes, as affordable housing. But it’s not affordable,” Bellus said to the press. “You’re putting people in a snare and a trap where they have no ability to defend themselves.”
Another state that has been devastated by this trend is Montana; one such park is Havenpark Communities in Great Falls, which has seen the cost of rent rise dramatically since 2020. One resident, Cindy Newman, said that her monthly rent had previously cost just $117 in 2020; since then, it has gone up to $400.
George McCarthy, CEO and president of the Lincoln Institute of Land Policy, revealed that corporate investors have been spending the last eight years buying out mobile home parks
(Excerpt) Read more at amgreatness.com ...
The housing market as we know it, sux donkey balls.
Gates on the other hand is focusing on the least profitable end of the food production/farming business. Land rents are negligible compared to the actual farming end of the business. In my neck of the woods, cultivated land that might sell for $3,000-$3,500 an acre can rent (farming rights) for $100+- per acre PER YEAR for non-irrigated land and up to $200+- for irrigated land.
The real money is made by those who sow, tend, and harvest...and the risks are huge, profits variable, equipment investments/needs massive, and experience required extensive.
What suggestions would you make to improve it?
Oh, sorry. It was unintentional.
No. That is horsecrap the greedy tell you.
People used to buy land and quiality builders would build their homes at reasonable cost before all the real estate “get rich quick” schemers popped up everywhere. Much nicer homes for far better value than today.
Now every piece of land is snatched up by investors who know how to grease the local system and identical cardboard shacks for maximizing profit are sold to suckers through banks.
It is equivalent of some “genius investor” draining all the gas stations during a hurricane and reselling to neighbors for profit. While another pops up with loans to “help” those that can’t afford it. Just because there is profit to be made by hoarding limited necessities like land or fuel, does not make it moral
Can only lead to a better class of redneck.
If we only had a more socialist economy. Just like the good old days, eh?.
No. You simply didnt gouge your neighbors to the max and understood people needed to live.
Just like most people were not trashy enough to horde gas and medications during emergency for profit. Unfortunately too many these days are so many places now have antigouging laws due to the scumbags taking advantage.
As the founders said, this nation can only survive if the people are moral...
“No. The residential housing marketing isn’t a vehicle financial markets should be able to acquire and squeeze for money.”
Do you believe we should pass laws against investment companies that buy/remodel or develop multifamily residential housing?
Could my 401K be invested in a company that uses the residential housing market to make money?
How many jobs are generated when a mobile home park or multifamily unit is updated for the raised rent?
That is what all those people who hate business say. Business is for greedy people.
What they don't realize is that EVERYTHING is a business.
A doctor is a businessman in that if he is a poor physician, his patients will leave and his practice will die.
A preacher is a businessman in that if he isn't a good preacher, his congregation will depart and his church will founder.
A ballet dancer is a businessman or woman in that if they don't perform well, no one wants to buy tickets to their performance.
Even a charity is a business in that if it doesn't perform as promised...well, you get the picture.
I've seen articles like this in the past. When the trailer parks are sold, the new owners have to recover the sales price and make a profit. That said, it seems to me big investment houses are scrapping the bottom of the barrel buying trailer parks.
Elections have consequences...
There is nothing wrong with moral business and fair competition.
Unfortunately real estate doesn’t work that way anymore. It is systematic price gouging of bare necessities through greedy insiders greasing the system.
No different from draining the only gas station in town during power outage and reselling for profit. Or buying up all protective gear when people think there is a pandemic.
Thinking you’re a great business man because you were scumbag enough to do it first...
Actually, what is immoral is you pushing to depress the prices of land and housing.
Many years ago I identified housing as an asset which was undervalued relative to its real worth. So I took a chance and bought properties for investment. It turns out I was right and values have increased.
BUT there was a chance than my reasoning was faulty and I could have lost everything. And then you come along and claim that this is somehow immoral. I took the chance and had my own money at risk, but you want me to give the benefit of that away by lowering prices. Essentially you want me to subsidize total strangers.
Nope.
That’s the problem. A lot of these parks or units are not getting updated or improved. My brother lives in one of these parks. He says the park won’t do improvements.
I did the same decades ago before the TV get rich quick schemes and assumed there would be modest increases to keep up with inflation like in the years past. There had NEVER been a decrease in real estate prices in the area so I assumed it was the least risky investment and maybe even safer than keeping money in the bank.
Then EVERYONE started doing it to the EXTEREME. Buying up every piece of land with maximum leverage for profit. While I could have made much more, the insane speculator climate put the American dream out of reach for younger people. I did not feel it was morally right to contribute to that situation and something was going to break if we didn’t stop.
Yes, the market did eventually correct in late 2000s. Unfortunately the rest of the economy went with it due to how big of an asset class real estate became and various insider schemes that made it even worse. So even with lower prices, most people who should be buying homes and starting families still had no chance to afford the American Dream.
I believe housing should be treated less like an asset class and the inability to afford housing is the main contributor in the growing feeling of doom and anger in younger people.
How to fix it at this point, I don’t exactly know. I think people should just act morally within the marketplace and not put profits above neighbors suffering but that clearly is not happening.
Whatever is done, it must be done soon before the pitchforks are out...
Not you and me, of course.
If you look at humans like squirrels or raccoons, however, you can understand that they are not so much greedy as just opportunistic. That's what makes the world go round.
As an aside, I have been stabbed in the back by many close friends and family. I don't blame them particularly though because I have come to understand that's just human nature.
It is rare that, given the chance, a person will behave like Christ when there is an opportunity to make a profit. Christ warned us about this side of ourselves. To think we are better than that is one dollop of self-deceit and one scoop of unwarranted pridefulness.
There's a political ideology for idealists. It's called socialism.
Socialism is an attempt to implement idealism by force which I don’t believe in and is not the path to true enlightenment. Free will is required.
I had more money than could spend at an early age and simply realized long ago we don’t live in bubbles and profit above my needs is meaningless. After a spiritual awakening, I gave most of it away and started doing work that helps people instead of maximizing profits.
It’s mind boggling to me what people do to their neighbors for excess material wealth they will never use in this lifetime. Jumping from one purchase to the next thinking they will be happy one day.
To me all the houses, cars, trinkets and women were NO comparison to living truly righteously. All that crap actually negates what truly matters and harms you in the long term.
Maybe the issue is most people never experienced the “rich” lifestyle that is pushed by media and will kill even those closest to them to have it...
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