Posted on 02/26/2023 12:04:17 PM PST by SaxxonWoods
I disagree that the residential housing market should be financial products for commercial use. Pure capitalism is destroying itself here. All that needs to be done is place restrictions against REITs and financial firms accumulating residential houses.
They have to be. Otherwise the houses won’t exist. With a few exceptions of places people had built for themselves the vast majority of every house you’ve ever lived in, been in, or driven by was built because somebody said “if I built a house here I could turn a profit.” If you start limiting who can own how many houses all you’re going to do is screw things up for the little guy. The big companies can just spin up more companies and get around those rules.
“Does this heavy purchasing tie into the story about the cartels LAUNDERING $$$$$$$ thru title deeds, etc in ARIZ-—and Hobbs being part of the effort???”
Those operation usually like casinos best but they can work with many types of large businesses. But this article is about something just starting so cartels are working with someone else for now.
The process of rentals becoming more of a business than Mom and Pop has been going on for quite a while. Overnight and short-term rentals and Bed and Breakfasts are sprouting up all over the place, mostly run by very small operation at this time. There’s a big shortage in all types of housing, an open invitation for businesses to get in on the action. As they should. Scaling up is the oldest form of business growth.
I’ve been in many that are wonderful and I live in one.
Plenty of great places left to live.
No REITS and Wall St don’t have to be involved in purchasing residential real estate. It seems quite obvious.
Businesses may be better landlords than individuals who often don’t have the money to take care of problems at rentals. We’ll just have to see. Somebody has to provide housing and the private market isn’t doing it.
Perhaps you would prefer tents.
> predicted last fall
From what I’ve heard the amount of bonds raised for this purpose has fallen to about 40% of what it was. When investors can get a guaranteed 5+% on Treasuries with none of the hassle of renting and maintaining properties along with little prospect of appreciation in the asset, 5% cap rates do not make a compelling business case.
This story is already in the rear view mirror.
Yep
They will
During BidenDepression 2023
Once these idiots get World War III really going, all bets are off the table
Had to hire a lawyer over 20 years ago to do just that. A county administrator was the problem, then a threat from a local builder and real estate agent. My lawyer talked to a county manager and cleared the way. I got along fine with inspectors the whole time. The inspectors were strict (expected) but straight and clean. That was in the West. I see the same situation in some counties in the Midwest. It’s getting nasty out there in at least some places.
Some of the smaller groups buying up properties in the Midwest are from the Middle East, New York and the like. They work against competition through local governments and other similar means.
https://jrnyquist.blog/2019/09/11/the-secret-speech-of-general-chi-haotian/
According to CCP planners, it is a pre-invasion strategy.
Except REITS build whole neighborhoods. They’ve been doing that since the post WWII boom. The whole Levittown concept and everything similar. I can point you to a dozen neighborhoods around Tucson, thousands of people, maybe 10s of thousands, have homes because of REITS and the financial product that is homes. Your area is probable similar. As for blocking “Wall St” who is “Wall St”? It’s a phrase that gets thrown around a lot, but has no real definition, especially in our modern world of trading companies everywhere. They are, by and large, investment firms. What do they invest in? What do you got? Stocks, bonds, commodities, businesses, and yes, real estate. If you stop all investment firms from investing in real estate you’ve just ended the new housing industry.
It isn’t obvious. That’s what I’m pointing out to you. It’s like “common sense gun control”, easy phrase to say, easy thing to demand, actually making it work... not so easy.
What you’re against is good business.
Forgot another one (Many more but this is ridiculous in terms of thinking we have a free market) Federal Housing Finance Authority increased home subsidies to $1.2 million or so with 20% down. Why would someone need to be subsidized at that price point? At 4% down you can be subsidized on a $438,000 ish home if you check the right boxeSSS/pigmentation or whatever. Artificial inflated prices is truly a free market idea but investors without scruples sure love it (Till they get judged from OnHigh) Screw Fannie and Freddie/Treasury and that bitch who is married to the Marxist George Akerlof.
I like your thoughtful comments here and it sounds like you have some experience in investing.
I’m a residential renovator /builder and buy & hold investor. I send out targeted mailer campaigns to older neighborhoods and, because they’re unsolicited, I’ll take the heat because it’s those one or two families who need to put mom in assisted living and are thankful for my outreach. They need to liquidate their elderly parents estate - FAST - to pay for the new lifestyle that often costs $7000 power month! I’ll, first, coach them on how to clean, tips on how to liquidate mom’s lifelong collection of STUFF (WHICH IS A WHOLE OTHER HEADACHE), renovate the property, how to find good contractors, tips on what to fix, how to chose a sibling to lead the renovation, and offer my leads to trusted real estate agents to list. After they realize how long that takes and how much it costs and how time consuming it is to manage, they’ll just agree to a fast cash liquidation. If not, then I’ve at least coached them for free on renovating tips for the most return - along with all my assisted living contacts for mom.
Anyway, every investor is different and I hear complaints from sellers about how badly they are treated by the 30% who are scumbags. I’m proud of my small company and if our focus is “people before profits”, then I’ll be good with my integrity...and sending some unsolicited mailers.
No, I’m against destroying the lives and enslaving the American people to financial firms.
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