RascalRiley Loc: Somewhere south of Detroit

Today I skimmed an article on a huge company that buys houses and rents them out. They are doing well on the stock market in both of our countries.

Is this a better option for small investors that just want to have enough?

https://www.instagram.com/reel/C4lr6jTvnNq/?igsh=MWxuNHd3YnVhNnE2dQ==

Milosia2 Loc: Cleveland Ohio

This is new privatized real estate.
Think about it. Corporations buy up all the real estate.
Leaving no options for anyone , other than renting.
Shazam !!!
Make them all renters !!!!!!
Own the houses they once owned and collect the equity as the mortgage is paid down.
Benefit from all of the homeowners perks.
And collect Rent on top of all of it .
Once finished , sell the property at inflated prices .
A Win Win Win !
You’re all going to be renters now!!!!!
Taking away another monetary equity from the peasants and putting it into the corporate privatized column .
Leaving not much of a reason for anyone to even live in this country .
If you can’t afford to live here.
What’s the point ?
Working three jobs only to pay rent ???
Hooray !!!
Gads I love I Love
Un Regulated Capitalism !!!!!

XXX Loc: Somewhere north of the Mason-Dixon

Nice way to sum up the Bidenomics that the " h**e trump cult" loves.

RascalRiley Loc: Somewhere south of Detroit

I agree.

AuntiE Loc: 45th Least Free State

Duh, Blackrock has been doing it for the last several years.

AuntiE Loc: 45th Least Free State

I am sure you support Blackrock for its sustainability (ESG) policies. FYI, they have been doing the buy/rent thing for several years.

NotMAGA Loc: Upstate NY - in a very red county

There are a ton of houses in our area that have been snapped up by out of area companies, some in Canada. They are not all managed well and it shows. And the rental prices are outrageous for the cruddy state of the apartments. 🥺

Strycker Loc: The middle of somewhere else.

And when those big companies start to liquidate their assets what do you think will happen to the values. The price earnings ratio on rental properties is way out of sync. Houses selling at undervalued prices are mostly gone. Rent rates are stabilizing. We are possibly nearing the peak of a housing price bubble that is caused by a number of influences. Institutional real estate investors have been one of those factors. I was getting 3 or 4 investors per day wanting to buy my properties. That is down to 3 or 4 per month now. As investor interest declines so will price. When prices start to fall investors will sell quickly driving prices even lower. The days of real estate being a winning investment at todays values and rental rates doesn't work like it has for the last 10 to 12 years. The bubble may keep growing for now but the end is closer than the beginning.

Now if you have a long timeline like 25 or 30 years for returns then almost any time is a good time for real estate investments. It will just take 15 years and some additional cash to get through it at the moment. Right now the average home price to rental income is about double what it should be to be a decent investment. Over a 30 year timespan with a 15 year mortgage expect around a 4% to 6% annual return after rent and appreciation and expenses. Results will vary.

F.D.R.

It's risky for the 'small' investor. You buy a home, invest some cash to make it presentable to rent, then a tenant moves in and after a month begins paying late then stops paying altogether, now you've got legal fees and it could take month's to get them out or they'll simply move out one night and leave you with big repair costs to boot.

RascalRiley Loc: Somewhere south of Detroit

It is risky. I have a four plex, a converted Victorian home that after much work I hired a management company handle everything.

Good return on what I might get on the capital in an investment fund.