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

Posted on 4/29/24 at 12:32 pm to
Posted by baldona
Florida
Member since Feb 2016
20579 posts
Posted on 4/29/24 at 12:32 pm to
quote:

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.


I don’t honestly think you can actually believe this. If you don’t care about your profit for the next 3 years, you won’t make it to year 4
Posted by CatfishJohn
Member since Jun 2020
13917 posts
Posted on 4/29/24 at 12:43 pm to
quote:

I don’t honestly think you can actually believe this. If you don’t care about your profit for the next 3 years, you won’t make it to year 4


Do you think this is their only business? Do you know how large and diversified these corporations are? You’re out your depth here.

Blackstone has an annual cash flow of like 4 billion. Just cash flow. 90 billion market cap. They are filled with long term investments.
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167647 posts
Posted on 4/29/24 at 12:46 pm to
quote:

I don’t honestly think you can actually believe this. If you don’t care about your profit for the next 3 years, you won’t make it to year 4



Your problem is you are thinking on a mom-and-pop operation level.

These firms have backers with deep pockets. The same type of investors that prop up tech firms for decades while they try to become profitable.

RE "losses" also have huge tax advantages for these investors
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