re: Homebuilders cancelling contracts to sell for more on market

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they are able to buy the homes slightly above market value because they fund at what was libor + a spread between 140 and 200bps - much cheaper than what funding cost were for the average home buyer a few years back..

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Correct... cause the Fed.

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any this case, the fees are built into the beginning of the transaction - there is not enough spread or excess return in these transactions like you would have in a private equity trade with a 4-5 year horizon.

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So if the fees are front-loaded... all the more reason to go on a buying spree... with that cheap fed-assisted cash.

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they only started investing in single family residential real estate when they numbers made since, REITS have been investing in apartments and commercial real estate for ages - nothing new

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I think people are used to corporate owned mutli-family... because it's multi-family. Few people ever thought they could buy an apartment complex, or wanted the hassle of one... even if they lived in a unit.

But people always felt they could buy single family for themselves... at least as a goal.