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Message

re: 3 corporations now own 19,000 metro Atlanta homes

Posted on 3/11/24 at 12:54 pm to
Posted by Motownsix
Boise
Member since Oct 2022
1982 posts
Posted on 3/11/24 at 12:54 pm to
quote:

All the people asking for a fix are basically asking for Democrat-style ideas in regulating markets. This is even a form of "consumer protection" or "infrastructure" (2 terms Leftists love to throw out)


Everything I’m reading is asking for very democrat party type of solutions for a problem that they wrongfully blaming on the democrats. It doesn’t make sense.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422854 posts
Posted on 3/11/24 at 12:54 pm to
quote:

Are you making the argument that Section 8 housing is so lucrative and desirable as a landlord that corporations are jumping at the chance to be a part of it? I work with several property management companies that manage my properties and none of them hold that opinion at all. Boise just recently changed some city ordinances that made it easier for section 8 tenants to get access to properties as tenants and all of the property management companies were fighting it.


Yeah this doesn't make sense and is just a partisan way to blame Democrats while promoting Democrat-type policies.

This is just a function of the security that housing provides. Investment firms are just trying to translate that security and demand into dollars. 2003-2008 they were focusing on the mortgages, but now they're focusing on the ownership value. Same base concepts, though.
Posted by JSO24
Member since Oct 2022
27 posts
Posted on 3/11/24 at 1:04 pm to
I’d be lying if I said I knew the intricacies of how PE operates in real estate.
I’ll let someone else take that on.

I’m just familiar with how they work in general, and in healthcare.

In its simplest form - they buy up as many offices/companies as possible, they leverage debt in any way imaginable on these companies. Squeeze profit, try to improve profit margins at all costs, to increase EBITDA and they try to sell the company off to a larger PE firm.
They do not invest in anything for the long term, that’s not their game.

I’m general - in any industry they invest in, healthcare, restaurants, real estate — the quality of the company will decrease and the prices will increase. You have likely experienced this whether you realized it or not.

So in real estate I have personally seen single family homes built by companies owned by PE — the quality of the house was atrocious, they just slap it together and sell it. If it’s a rental, they will try to get as much of the market in that area as possible so they can set the prices, eventually increasing the rent costs. I’ve heard of that happening.

That’s all my thoughts, but anyone familiar with PE and how they operate likely won’t disagree.
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
64077 posts
Posted on 3/11/24 at 1:53 pm to
That one is just about built out, there's more around there still under development. Its going to be thousands more people to an area considered rural 5 years ago.
Posted by Rick9Plus
Baton Rouge
Member since Jul 2020
1724 posts
Posted on 3/11/24 at 2:35 pm to
quote:

Tell your wives and their friends to stop voting for lefties. Otherwise we have no chance. Please explain what republicans have done to combat this.


Yeah neither side is for the middle class. Not really.
Posted by Harry Caray
Denial
Member since Aug 2009
18648 posts
Posted on 3/11/24 at 2:49 pm to
Disgusting our country allows corporations to own single-family residences at all.
Posted by Stexas
SWLA
Member since May 2013
6016 posts
Posted on 3/11/24 at 2:58 pm to
Not at all. Mortgage subsidies, like first time home buyer grants, or super low qualifications to get mortgages etc. I don't believe section 8 helps anyone except slum lords.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422854 posts
Posted on 3/11/24 at 3:12 pm to
quote:

Disgusting our country allows corporations to own single-family residences at all.

Why?
Posted by Philzilla
Member since Nov 2011
1392 posts
Posted on 3/11/24 at 3:42 pm to
quote:

19,000 metro Atlanta homes

Jokes on them.
Posted by Sterling Archer
Austin
Member since Aug 2012
7325 posts
Posted on 3/11/24 at 4:39 pm to
Outlaw this shite. Ridiculous
Posted by themunch
Earth. maybe
Member since Jan 2007
64683 posts
Posted on 3/11/24 at 4:44 pm to
quote:

not a good sign


Shore makes it easier to turn them all over to the gubment.
Posted by Sterling Archer
Austin
Member since Aug 2012
7325 posts
Posted on 3/11/24 at 4:57 pm to
Look up the proposed “End Hedge Fund Control of American Homes Act”.

quote:

The End Hedge Fund Control of American Homes Act seeks to put an end to this harmful practice of hedge funds buying up single-family homes:
•Bans hedge funds from owning single-family homes and requires them to sell at least 10% of the total number of single-family homes they currently own to families per year over a 10-year period.
• Subjects hedge funds to a $50,000 per single family home per year tax penalty on the number of single- family homes owned above either zero or a scheduled 10% reduction per year over 10-years winding down to zero. o After a 10-year full phase-out, all hedge funds will be completely banned from owning any single-family homes.
• Imposes a 50% tax on the fair market value of any future hedge fund purchase of a single-family home.
• Tax penalties paid by hedge funds are reserved for down payment assistance for people seeking to purchase homes sold by hedge funds.
• Ensures the tax penalty focuses on problematic actors by excluding nonprofit organizations, public housing agencies and other government entities.
• Includes an explicit certification process for a purchaser of a hedge fund owned home to confirm that they do not own a majority interest in any other single family residential real estate.


No reason something like this shouldn’t have bipartisan support
This post was edited on 3/11/24 at 5:04 pm
Posted by baldona
Florida
Member since Feb 2016
20490 posts
Posted on 3/11/24 at 5:05 pm to
So I’m just curious here, if a hedge fund buys a tract of land, develops it into homes, and rents those homes out we don’t like that? Who is losing here? No one made anyone sell the land?

Again, the percentage of people that are losing out on a home purchase to a large investor has to be extremely
Small. The people losing out are probably the mom and pop real estate investors that own 5-10 homes or whatever.

Ultimately real estate is about location and in single family residences it’s extremely difficult to price in location in regards to what the residential buyer will pay compared to a renter. The buyer will almost always win which means an investor can’t afford to purchase where buying is in high demand.

ETA: as said every single person blaming this on democrats wants a democratic/ anti capitalistic solution.
This post was edited on 3/11/24 at 5:07 pm
Posted by faraway
Member since Nov 2022
2061 posts
Posted on 3/11/24 at 5:15 pm to
quote:

It’s one of the great ironies of MAGA. Expecting Trump, a draft and tax dodging, grifting, crooked real estate developer to save everyone from this kind of stuff.

The man is a walking pyramid scheme.
ironically, he's living rent free in your head
Posted by Sterling Archer
Austin
Member since Aug 2012
7325 posts
Posted on 3/11/24 at 5:15 pm to
quote:

Again, the percentage of people that are losing out on a home purchase to a large investor has to be extremely Small. The people losing out are probably the mom and pop real estate investors that own 5-10 homes or whatever.


Welp there it is. Baldona says only a small percentage of individuals are losing out to investors.
Posted by Sheep
Neither here nor there
Member since Jun 2007
19508 posts
Posted on 3/11/24 at 5:18 pm to
quote:

Corporations will only buy up more homes going forward all over the country


As a taxpayer, I'm excited to bail these companies out when the whole shebang goes tits up and we need to keep the companies from failing, because reasons.
Posted by Crowknowsbest
Member since May 2012
25879 posts
Posted on 3/11/24 at 5:18 pm to
quote:

Includes an explicit certification process for a purchaser of a hedge fund owned home to confirm that they do not own a majority interest in any other single family residential real estate.

This would seem to exclude most non-first time buyers, which seems to be an overreach imo.

Also, there should be a carve out for institutional equity to finance single family rental development and construction. Otherwise that won’t get built, and there is a market for it.
Posted by LemmyLives
Texas
Member since Mar 2019
6511 posts
Posted on 3/11/24 at 5:23 pm to
You and your quasi-free market solutions. Pshaw!

19k homes in Atlanta is nearly inconsequential. Is a home or a condo? A single family home? 2BR condos near the split are listing for $300k. 600 square feet for $200k? That's a choice, so you have expendable income for bondage parties ITP.

Chinese, at least, have been buying single family homes in Houston for at least 15 years. Ex MIL sold her house to a Chinese investor around 2012? to a lady that couldn't be found for weeks, because she (the "investor") was apparently gambling somewhere. All cash, I think just short of $500k.

But let's ignore interest rates and the impact of FedGov policies on how much a loan costs. And how it got suddenly worse in late 2020, and continued to get worse.

Posted by Penrod
Member since Jan 2011
39443 posts
Posted on 3/11/24 at 6:15 pm to
quote:

Yeah neither side is for the middle class. Not really.

Well, they want to get reelected, first and foremost, but the middle class in America over the last 75 years has experienced enormous increases in living standards never believed possible anywhere in the world.

Are you middle class? Do you have a big screen TV with a gazillion channels? Air conditioning and heating? Not only enough to eat, but do you also go to restaurants? Do you travel? Have a car for each adult? Health care?

Those are rhetorical questions. Of course you have all of that, and more. My wife and I came from broken homes. We met as teenagers in 1979. We both graduated from college, but had nothing besides that and each other. We easily raised four children even though she “retired” with the first birth. I didn’t earn a ton, but we made it work by doing without - no vacations, no dining out, no movie theaters; we took second hand clothes for our kids and did everything for ourselves. We fixed our own cars and fixed things that broke at the house. My wife cooked cheap meals and budgeted for everything.

And we thought we were rich. In fact, we knew we were rich. We had what we needed which was opportunity. We were middle class. No one “cared” about us; we cared for ourselves. Today it is easier than it was then. The reason all you whiners think it’s harder is because your threshold for what is a necessity is much higher.

Grow a pair of nuts and quit blaming everyone else.
Posted by Penrod
Member since Jan 2011
39443 posts
Posted on 3/11/24 at 6:18 pm to
quote:

Disgusting our country allows corporations to own single-family residences at all.

Holy shite, this is philosophical ignorance. Why shouldn’t a corporation own a house? That doesn’t preclude you from owning one. But we will put you down as anti-freedom.
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