The simple answer is that they're risking their capital. If someone buys a tent house, they now have an asset that can burn down (insurance only making them par

The simple answer is that they're risking their capital. If someone buys a tent house, they now have an asset that can burn down (insurance only making them partially whole), or get a renter who draws out zero payments for months. Or just the bottom falling out of the market. Risk should be rewarded.