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The issue arises when the buyers don't understand the risks involved with these securities. In the last real estate crash, investors didn't understand they wer
by bkjelden 11y ago
The issue arises when the buyers don't understand the risks involved with these securities.
In the last real estate crash, investors didn't understand they were buying mortgages made to people who had no business owning a house as expensive as they did.
We don't know what assumptions have been made about these rent checks (aside from a couple off-hand figures such as the 95% occupancy quote), so we don't know whether or not the buyers understand the risks.
As the article states - "You kind of just hope they know what they're doing"