7 ms·
Sort of. REITs typically buy tranches of real estate. They might own entire blocks or office developments or they might own parts of those properties. These dea
by ones_and_zeros 10y ago
Sort of. REITs typically buy tranches of real estate. They might own entire blocks or office developments or they might own parts of those properties. These deals are typically at least seven figures.
More recently REITs have begun buying up multi families in cities that have historically been owner occupied (typically by immigrant and other marginalized people).
You can see the direction they are moving. Point has done the math and concluded buying single family houses and condos is too risky as a landlord but buying a share of one with generous terms isn't.
Ultimately these shares themselves will be tranched and packaged as CDOs that the big REITs can buy, Point being the facilitator.