Selling out: America's local landlords. Moving in: Big investors

[corbe]

Selling out: America's local landlords. Moving in: Big investors

Michelle Conlin

July 29, 2021
12:12 PM CDT
Last Updated 2 hours ago

NEW YORK, July 29 (Reuters) - Beset by COVID-19 and its fallout, local landlords are offloading their properties to cash-rich institutional investors, and America's real-estate market may never be the same.

Before the pandemic, boyhood friends Michael Murano and Richard Tyson owned 96 rental units in their hometown of Rochester, New York. They offered accommodation to low-income tenants, many in the service industry, from rooming houses to single-family starter homes.

Today, they're well on their way to liquidating the entire portfolio. Two-thirds of the units are already gone. The buyers? Large investors with all-cash offers.

"It broke my heart to sell 15 single-family homes to just one, out-of-state big corporate investor," said Tyson, a 38-year-old U.S. Navy veteran.

"The last thing we need is to be exporting wealth out of this community, and limiting wealth creation here. But I knew we had to get the hell out of affordable housing - fast - because this was going to be a tidal wave coming at us."

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https://www.reuters.com/business/finance/selling-out-americas-local-landlords-moving-big-investors-2021-07-29/?taid=6102e0f5964cb9000114a247&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

[Weird Tolkienish Figure]

There is a shit-ton of land in this country. If corporations want to buy up housing, lets build more, flood the market, and make them hurt.

[thackney]

There is a shit-ton of land in this country. If corporations want to buy up housing, lets build more, flood the market, and make them hurt.

Who is going to do that without hurting themselves?  How do you build new to oversupply the market driving prices down and still expect to make a return on your new investment.

[Weird Tolkienish Figure]

Who is going to do that without hurting themselves?  How do you build new to oversupply the market driving prices down and still expect to make a return on your new investment.

Good point, but people in it for the long term will do fine, the short term flippers (like corporations and such) will hurt from the above.

[thackney]

Good point, but people in it for the long term will do fine, the short term flippers (like corporations and such) will hurt from the above.

You just wait for years for the demand to catch up to supply?  They only ones getting tenants are the folks accepting the lower price? 

I think it is a mistake to think corporations are short time flippers.  They are taking in investments from individuals to share the investments.

Yeah, I'll pass on intentionally creating a massive downside market for my investment.

[corbe]

   Bidet's gonna renew the eviction/foreclosure moratorium anyway.

[sneakypete]

Of course.

What else do you think was the real cause of the War of Northern Aggression or the Great Depression?

[sneakypete]

There is a shit-ton of land in this country. If corporations want to buy up housing, lets build more, flood the market, and make them hurt.

@Weird Tolkienish Figure

Won't work because they won't lend you the money.

[sneakypete]

Good point, but people in it for the long term will do fine, the short term flippers (like corporations and such) will hurt from the above.

@Weird Tolkienish Figure

That is where you are wrong,my friend. These people buy land,but they NEVER sell it. Rent money is forever.

[dfwgator]

How many of these investors work for the ChiComs?

[dfwgator]

@Weird Tolkienish Figure

Won't work because they won't lend you the money.

It's a Big Club, and you ain't in it.