Investors Are Looking to Buy Homes by the Thousands
RIVERSIDE, Calif. — At least 20 times a day, Alan Hladik walks into a fixer-upper and tries to figure out if it is worth buying.
As an inspector for the Waypoint Real Estate Group, Mr. Hladik takes about 20 minutes to walk through each home, noting worn kitchen cabinets or missing roof tiles. The blistering pace is necessary to keep up with Waypoint’s appetite: the company, which has bought about 1,200 homes since 2008 — and is now buying five to seven a day — is an early entrant in a business that some deep-pocketed investors are betting is poised to explode.
With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.
But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.
Rest here…
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It is amazing how just about every tragedy in a human’s life will bring out at least one kind of vampire that is more than happy to feed upon the remains of that tragedy.
Another way to redistribute wealth. We may as well raise the 99% to 99.5%. The Government makes more Revenue from people who have more money, so they most likely figure; kick the lttle guys out of the picture, and let the big animals feast on the leftovers.
This will make us all vultures.
If Investors can do this, so can we. When a foreclosed house sells at the courthouse steps, the high bidder gets the house regardless of your pedigree or real estate knowledge.
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When the houses around you are selling for half of what you owe, it encourages those paying twice the monthly amount to buy one of the half priced ones and simply move out.
WE haven’t seen the end of this mess yet.
I believe it’s actually a part of HUD’s counseling/services to ‘clients’ who need to ‘relocate.’ (Another gov’t agent helping sweep it all someplace!) I’ve heard attorneys recommend it as ‘sound business sense.’ FHFA Director DeMarco would probably have you arrested as some kind of ‘strategic defaulter’ though.
vultures!
So instead of doing a principal reduction to fair value of the house and save a family from foreclosure, they are going to first kick out the family in to the street, then give these homes to some corporation for cheap, and then rent them back to the family at a lucrative rent amount?? WTF?
actually they were doing that for some time, and guess who is the principal investor???
our friendly government of course…
after we were fraudclosed, we received a letter that we can make rent payments to HUD and stay more time…
“So instead of doing a principal reduction to fair value of the house and save a family from foreclosure, they are going to first kick out the family in to the street.”
Yes. Instead of compensating American Families and all of America victimized by bank fraud at the inception of these ‘loans’ thru principal correction to fair market, their ‘best’ idea is to displace the citizens they represent, and REPLACE them with immigrants seduced by visas to purchase American homes with bad titles. US Senators Schumer & Lee, rather than enforce the laws against bank fraud, feel it only just & fair to now REPLACE American Families- their constituents with a better model. Why not. Those immigrants can afford it. They have our American jobs our government/corporations sent abroad. American JOBS, American HOMES and now American FAMILIES for SALE! Vote for Chuck & Mike America!
They are only buying bank owned homes, not anybody’s underwater home.
I think the homes come with a government guaranty .
No risk to investors, isn’t that what got us here ?
guess one should proof read! oops!
What I have witnessed, refusal to help anyone with their underwater/crappy rate change loan; okay we now see that quite clearly! Sell to investors, groups of persons on loan docs, the little house that the young family took such good care of/this was their second home now consistentlyy looks abandaoned, one group of tenenats the swat team took them out? that is on a street where homes hit the $700-800; three buyers are still on this street! with current payments! Once upon a time this was a secoond homebuyer neighborhood, children were a little older, etc, now it is Huds first time buyer program, need assistance with your downpayment program? and those are the good neighbors, doing their best with little capital! Then we have the perfect homes purchsed by investor groups, who strip the home, call it a fixer? Our taxes pay to fix these back up and I am not kidding! Once upon a time agents were considered not caring about how much they got for a home, now take a real look, just what are they too do when homes in brand new condition are sold as cheap as the ones destroyed! It is just a matter of time that the rents go up, here it is mostly Mexican, thank god , they know how too move into gether and make the best of a situation, but should they have too? No they should not, renting back to them when you could have adjusted their loan, or given them a new home, instead anyone screwed from the prior event of fraudulent pricing appraisales, loans that adjusted up too impossible, the only ones helped as we know were the banks!!! Punishing the people still continues, fraudclosure is still the first option for all lenders unless someone is watching, the iminute they aren;t they are locked out of their homes!!! So far the only ones being hurt here are the former buyers!! SElling dirt cheap to investors to rent back what a plan! Sounds like the corp. companys making all of these decisions from their big desk with absolutely no idea what is happening out here in South County!
Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.
WHAT’s to worry?! I turn my buck, and I’m out. Get with the program! $$$ ‘It’s the nineties!’ Families thru the grinder? Little matter. Hose ’em out for the next guy. No stomach for it? Don’t go there. Hurry! Hurry! Step right up! Don’t be shy little girl. The BIG show is about to begin. $$$
This is how we used to make slums & tenements years ago. Some of you will remember. Get with the program!
That’s right. We’ll turn “owned-homes” into “rental-homes”. And we all know how well folks will take care of something they don’t own!
Precisely! They did it with corporations. Fired all the allegiant 20 yr. employees & vendored it all. No more ‘pride of ownership,’ loyalty, commitment to your work community. Everyone’s a drifter. No more guessing about it- 3rd world comin’ as plain as day. Guess that’s what the Big Banks think is best for America. We’ll just have to suck it up and serve India, China & Japan.
America was, but is no more. It can never recover from this.