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re: WSJ: Wall Street Has Spent Billions Buying Homes. A Crackdown Is Looming.

Posted on 4/29/24 at 11:30 am to
Posted by baldona
Florida
Member since Feb 2016
20581 posts
Posted on 4/29/24 at 11:30 am to
quote:

Tough. Re-price it or sit on it. This is exactly the situation where institutional investors salivate. They don't care about near term losses in equity value so they buy an overpriced home, which we know is overpriced due to it not selling, and sit on it. They do this is swaths. That artificially inflates home values.


lol. How do you know this? It’s laughable.

Have you seen the housing market lately? In many places it is not doing well. It’s not up all over like it has been in the past.

The entire point of an institutional owner is to make money. You can’t just buy property for a loss over and over and make money.
Posted by CatfishJohn
Member since Jun 2020
13918 posts
Posted on 4/29/24 at 11:33 am to
quote:

The entire point of an institutional owner is to make money. You can’t just buy property for a loss over and over and make money.


They aren't in this for near term profit. They aren't calculating ROI in 1,2,3 years. They are looking at 20+ years. They want to rent them out as much as they can and sit on them.

This isn't some guess I'm making. These are known things.
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