The New American Dream: Rent Your Home From A Hedge Fund
 

Buying and renting out single-family homes has long been the mainstay investment of small, independent, individual investors.

The big banks and hedge funds pretty much monopolize everything else. They own the stock market. They own the bond market. They own all the commercial real estate. They even own the farmland.

Single-family homes were one of the last bastions of investment freedom for the little guy.

(Real estate is how I got my own start in business and investing so many years ago; I was a 21-year-old Army lieutenant fresh out of the academy when I bought my first rental property.)

But all that?s changing now.

Last week a huge merger was announced between Invitation Homes (owned by private equity giant Blackstone Group) and Starwood Waypoint Homes (owned by real estate giant Starwood Capital).

If the deal goes through, the combined entity would be the largest owner of single-family homes in the United States with a portfolio worth over $20 billion.

And this is only the latest merger in an ongoing trend.

Three years ago, for example, American Homes 4 Rent bought Beazer Pre-Owned Rental Homes, creating another enormous player. A few months later, Starwood Waypoint bought Colony American Homes.

And of course, Blackstone was one of the first institutional investors to start buying distressed homes, forking over around $10 billion on houses since the Great Financial Crisis.

At one point, Blackstone was reportedly spending $150 million a week on houses.

There are some medium-tier players coming into the market as well. A friend of mine runs a fund that owns about 2,000 rental homes in Texas, and he?s buying every property he can find.

Continued The New American Dream: Rent Your Home From A Hedge Fund | Zero Hedge

Wehateporn is a foreigner that hates Americans & American culture.

Every day he posts anything negative he can find on fringe sites online. He's obsessed with hating America because his life is miserable in his country.

^^^He's the guy pushing the lawnmower^^^

You really do hate America.

How's life in your country?

Tell us what you don't like about where you live.

Tell us what country you're in and where you were born.

You sound like a Muslim living in Britain that hates Western culture because you were denied entry to America.

You never will because your mission here is solely to post negative shit about Western culture, mainly America.

You won't ever mention how you are weak living in a supressed society with a regressed mind.

It is unethical to allow investment is housing in the US or in any nation, houses are for living in not for making people rich :2 cents:

unethical or not, it's happening:2 cents:

You're such a coward.

You point fingers at America everyday, all day, in hate. You said living in Russia would be better than living in America. Very clear you're fucked in the head. No offense

You never talk about your country or your life, very cowardly

while it doesnt have Florida or California, I guess it could be also nice - if YOU HAVE MONEY (not from Russia :) ). unless you are owner of yandex or chief of Gazprom ;]

As has been said it's not about America, these crimes can happen anywhere

You do realize Fred Trump, Donald's father, made his fortune owning residential rental properties and to this day Donald Trump profits from rents?

By your twisted logic that makes Donald Trump a criminal ...

Unfortunately it is legal in many countries, though it is wrong ethically, laws need changing. Trump is the type who will do what is legal if it benefits him, same as Obama, it is rare to find a politician of a high level who does the right thing morally, there are rare examples though like Jeremy Corbyn the leader of the UK opposition.

It's a real estate racket...a cancer that drives up prices and benefits a few while hurting the disposable income of millions upon millions...trickle up!

In Soviet Russia the state owned most real estate -- how did that work out?

Let people buy a place to live in, but not as an investment, otherwise it increases poverty

You really hate America.

Where do you live? What's your race? Where were you born?

You hide this from everyone here while attacking everyone else.

Why are you hiding the truth about yourself while attacking Americans on a porn board everyday asshole? Get a fucking life loser :321GFY

You are far too interested in race and nationality, is that how you judge people? And you're meant to be liberal, so you need to take a good long look in the mirror :2 cents:

everybody got free apartments...but this is not the point...

the point is if you allow rich people to buy hoses in bulk you are inevitably driving up the prices of real estate and making the bottom 99% pay more...this in turn hurts their disposable income....this in turn hurts your non 1% economy...it is classic trickle up...

http://ei.marketwatch.com//Multimedi...a-0015c588dfa6

Warren Buffet said if he could buy 100,000 rent homes he would. The middle class is dying.

Let me see if I understand this: You want to decrease the value of my home so you can afford one too?

Food and homes should not be something which investors are allowed to speculate on, it is parasitic :2 cents:

I do not really care about your inflated home value...I am saying that the real estate hoarding is a cancer for the 99% and that it is classical trickle up...it cuts the disposable income of normal people in half and distributes the wealth in one way only and that is up...you understand this it is simple stuff...you may lose on inflated home value but most of your customers and their customers would have greater spending power...

^^^This^^^

I sometimes sleep in a hedge... Its warmer in the winter than a shop doorway...

Guys like you would be happy to fuck me out of what I have worked hard to acquire for years .... fuck you too peasant

Here is your free house

https://s27.postimg.org/mfbrptu1f/Ca...Box-_House.jpg

rent-free!

I was a tenant for many years -- I worked my ass off to not be a tenant. You have the same opportunity -- make it work. I know lots of people that buy homes in Europe where property is relatively expensive.

I do not want anybody to take your house...wtf? LOL

It is modern day exploitation through speculation...people spend decades paying over inflated prices and a small few make bank by doing nothing at all...I feel this is wrong...so do you, but you have conflicting interests...

in a nutshell:

The preferential tax treatment of housing investment, especially negative gearing in combination with capital gains tax concessions, has driven speculative over-investment in housing (which is in essence a non-productive asset).

As a consequence, these tax breaks have contributed to price rises above levels supported by economic fundamentals, increased inequality, discouraged investment in productive enterprise, and punished other traditional means of building wealth such as establishing businesses and saving money.

The enormous increase in mortgage debt accompanying the last two decades of housing speculation have placed our financial system at very large risk from a potential correction in values, exactly as it did in a number of other developed countries in the lead up to the GFC, who suffered economic devastation from collapsing house prices.

Perhaps even more importantly, exponential growth in mortgage lending has significantly cannibalised productive investment in other areas of the economy, as the availability of credit to business has decreased, and the general input costs of business have increased thanks to higher land values.

This process is best referred to as mis-allocation of capital, and among other problems, has resulted in lower productivity and competitiveness, and contributed to a massive restructuring away from a ?mixed economy?, not least of which has involved the alarming shrinkage of traditional labour-intensive business sectors like manufacturing and services.

Additionally, tax breaks flowing to superannuation and the ability to borrow money to invest in housing and equities in self managed super accounts has been identified as a key source of risk and a contributing factor to house price escalation. The report recommends securing in legislation the sole purpose of superannuation as providing for retirement, not speculation in housing or tax evasion.

Perhaps most worryingly, the report has effectively determined that contrary to popular belief, our banks do not hold adequate capital reserves against mortgage credit, and would be at risk of insolvency in the case of a major housing downturn.

Worse still, since the GFC, the precarious position of bank?s credit books have been backed by an implicit taxpayer-funded guarantee, helping to ensure that the required foreign credit to fund mortgage lending is available at cheap rates, despite the enormous profitability of major banks. And in the case of crisis, the taxpayer would again be on the hook for failing banks, a double whammy.

Unethical to allow investment in housing ???

You are such a child.

House builders, Banks, Mortgage lenders.....etc.....etc.....there is no housing without investment you fucking simpleton.

:1orglaugh:1orglaugh:1orglaugh:1orglaugh:1orglaugh :1orglaugh:1orglaugh

Sorry -- you must be a landless peasant ...
I want car loans to be illegal so I can buy a Bentley for less money -- same logic.
Head up your ass.

If you can't borrow money to buy a new car either you pay cash for it or you pay cash for the car you can afford. Some people have to take the bus.

If you can't buy a house you are a tenant or you live in your car.

There is no economic equality. The Commissar became the bourgeois in Fascistic Communism. New boss same as the old boss more or less. And the new boss in America promises more work in the coal mines :upsidedow

We were talking about owning house properties to rent out :upsidedow

also if you are not big and strong you give your lunch money to those who are :1orglaugh:1orglaugh:1orglaugh there is no justice! :1orglaugh:1orglaugh:1orglaugh

look the rich make bank by exploiting the poor through this...you can dance around it all you want, it all boils down to the few making money with no work at all on the many...the ones who have access to capital will not invest in creating new jobs but rather in speculation...this is the problem with modern capitalism...speculative investment is held in high regard...

your analogy to cars is off point...you can buy a car for 2K or a car for 2mil...but you can not buy a house for 2K...a house is essential for humans because they have a weakness towards warmth and shelter...it is not the same thing...