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given interest rates are at a historic low, i would be shocked if they are using actual cash to buy these houses. presumably they are buying with mortgages?
by scottjg 5y ago
given interest rates are at a historic low, i would be shocked if they are using actual cash to buy these houses. presumably they are buying with mortgages?
- vmception 5y agoor the corporate entity has borrowed funds at the super low interest rates for general purposes which it uses for this purpose cursory google search shows $1.1bn in bonds issued that way as well as a more recent $450bn which is actually collateralized by the properties they've already bought, already in their portfolio not even 1:1 leverage, and a far cry from the 46:1 leverage seen on the institutional side in 2008 https://aimgroup.com/2019/09/05/zillow-issues-1-1b-in-debt-as-home-flipping-arm-grows/ https://aimgroup.com/2019/09/05/zillow-issues-1-1b-in-debt-a... https://www.bloomberg.com/news/articles/2021-08-03/zillow-450-million-bond-deal-a-first-for-big-tech-home-flippers https://www.bloomberg.com/news/articles/2021-08-03/zillow-45...