5 ms·
> difficulty of scale, which prevents the Blackrocks of the world from just buying up all of the property that could actually return 20% and making the market e
by aianus 7y ago
> difficulty of scale, which prevents the Blackrocks of the world from just buying up all of the property that could actually return 20% and making the market efficient
What exactly is stopping House Flipping BigCo from doing what you're proposing at scale?
- opportune 7y agoHousing asset management only scales linearly because you need several people to physically inspect/validate each property before purchase to make sure there are no serious issues. Also you need to assess the rental conditions for each property on a case by case basis, and contract everything out to property management. A lot of REITs invest in medium-large sized complexes to avoid the potential headaches. I’ve lived in a few of these and found them to be quite well managed.