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Private equity firms are buying the foreclosed houses then turning them into rentals. This was a growing concern in Atlanta when I lived there. It seemed like e
by rdouble 13y ago
Private equity firms are buying the foreclosed houses then turning them into rentals. This was a growing concern in Atlanta when I lived there. It seemed like entire neighborhoods were being bought up.
http://www.bloomberg.com/news/2012-10-17/private-equity-in-atlanta-after-picking-phoenix-clean-mortgages.html http://www.bloomberg.com/news/2012-10-17/private-equity-in-a...
- makomk 13y agoSo, basically: Step 1: Fraudulently foreclose on people's mortgages Step 2: Sell the houses to private equity firms who will rent them out to all the people who are now homeless due to foreclosures Step 3: Profit!
- yardie 13y agoIf those prices are correct then the auctions are priced at less then the price of land, material, and labor. In this day and age it's very difficult to construct a single family home for less than $60K. Unless you are using cheap material, microscopic plots, and a lot of unskilled labor. The banks are willing to take a bath on their own profit to please private equity investors? That doesn't add up.
- rdouble 13y agoThere's also an demographic dynamic at play unmentioned in the article. Unfortunately, in Atlanta the racial makeup of the neighborhood has a lot to do with the value of the house.