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Blackrock and other funds buy thousands of homes and rent them out. Those are mortgage free homes.

by Pigalowda 3y ago

deleted 3y ago
[deleted]
hondo77 3y ago
Why would they pay cash instead of getting big loans for multiple properties at a favorable rate?
- k1t 3y ago
  You can still finance the properties with debt, without it being a mortgage. For example, taking out a single large loan, then using that to purchase many properties with "cash".
c22 3y ago
You're probably thinking of Blackstone which spunoff from Blackrock in the 1980s. Further reading: https://www.blackrock.com/us/individual/insights/buying-houses-facts https://www.blackrock.com/us/individual/insights/buying-hous... https://www.blackstone.com/housing/our-track-record-in-housing/ https://www.blackstone.com/housing/our-track-record-in-housi... https://www.helpadvisor.com/retirement/blackrock-vs-the-blackstone-group-where-should-you-invest https://www.helpadvisor.com/retirement/blackrock-vs-the-blac... https://fintel.io/news/blackrock-now-owns-490-of-blackstone-bx-406 https://fintel.io/news/blackrock-now-owns-490-of-blackstone-...
- Pigalowda 3y ago
  If it’s such an infinitesimally small portion then why defend the position instead of just shedding the assets? I don’t trust their whitewashing at all. Blackfund should sell but they won’t until they’ve extracted the blood they think they deserve.
- r00fus 3y ago
  A distinction without a difference - they're both in the same rent-seeking model.
  - c22 3y ago
    I guess, except Blackrock literally does not buy houses whereas Blackstone owns "0.03% of single-family homes in the US" and rents them out. A distinction that seems entirely relevant to the claim "Blackrock [...] buy thousands of homes and rent them out."
    - r00fus 3y ago
      This article claims otherwise [1] "BlackRock, Vanguard, and State Street have notably been making substantial investments in single-family homes across America. Their housing acquisitions are primarily conducted through real estate investment trusts (REITs), including home-rental companies. BlackRock, for example, is heavily invested in Invitation Homes. A company that owns and operates over 80,000 rental homes in the U.S. " [1] https://businessandfinances.com/2023/09/investment-giants-buying-americas-homes-blackrock-vanguard-state-street/ https://businessandfinances.com/2023/09/investment-giants-bu...

Blackrock and other funds buy thousands of homes and rent them out. Those are mortgage free homes.

deleted 3y ago

[deleted]

hondo77 3y ago

Why would they pay cash instead of getting big loans for multiple properties at a favorable rate?

k1t 3y ago
You can still finance the properties with debt, without it being a mortgage. For example, taking out a single large loan, then using that to purchase many properties with "cash".

c22 3y ago

You're probably thinking of Blackstone which spunoff from Blackrock in the 1980s. Further reading: https://www.blackrock.com/us/individual/insights/buying-houses-facts https://www.blackrock.com/us/individual/insights/buying-hous... https://www.blackstone.com/housing/our-track-record-in-housing/ https://www.blackstone.com/housing/our-track-record-in-housi... https://www.helpadvisor.com/retirement/blackrock-vs-the-blackstone-group-where-should-you-invest https://www.helpadvisor.com/retirement/blackrock-vs-the-blac... https://fintel.io/news/blackrock-now-owns-490-of-blackstone-bx-406 https://fintel.io/news/blackrock-now-owns-490-of-blackstone-...

Pigalowda 3y ago
If it’s such an infinitesimally small portion then why defend the position instead of just shedding the assets? I don’t trust their whitewashing at all. Blackfund should sell but they won’t until they’ve extracted the blood they think they deserve.
r00fus 3y ago
A distinction without a difference - they're both in the same rent-seeking model.
- c22 3y ago
  I guess, except Blackrock literally does not buy houses whereas Blackstone owns "0.03% of single-family homes in the US" and rents them out. A distinction that seems entirely relevant to the claim "Blackrock [...] buy thousands of homes and rent them out."
  - r00fus 3y ago
    This article claims otherwise [1] "BlackRock, Vanguard, and State Street have notably been making substantial investments in single-family homes across America. Their housing acquisitions are primarily conducted through real estate investment trusts (REITs), including home-rental companies. BlackRock, for example, is heavily invested in Invitation Homes. A company that owns and operates over 80,000 rental homes in the U.S. " [1] https://businessandfinances.com/2023/09/investment-giants-buying-americas-homes-blackrock-vanguard-state-street/ https://businessandfinances.com/2023/09/investment-giants-bu...