Comment by alright2565 3 days ago
> Of those, mom-and-pop investors, or those who own between 1 and 5 homes, account for 85% of all investor-owned residential properties, while those with between 6 and 10 properties account for another 5%.
LLCs need to declare the beneficial owner(s), which is supposed to give transparency and KYC to corporate structures like that.
Not when they’re funneled through states like Wyoming and Nevada which an enormous amount of them are… both have very good privacy laws protecting the owners identity. Often times there will be a local LLC which is owned by (at least one) separate out of state LLC in Nevada or Wyoming obfuscating who the true owners are. There’s a whole industry behind this.
Sounds like a federal law is needed to pierce these exploitive veils.
Shit even if not something like that, 5 homes in the middle quintile in my city would be around 2.4 million dollars. That's the entire net worth of a middle class family at the end of their earning years, including their house. The only people whose mom and pop have that kind of money to invest are rich folks. It's just as much a problem as the other thing in practical terms.
1 home qualifies you as an invrestor? So I’m an investor? That definition is whacked it should be at least 2 homes.
“I own no homes, and am buying a home”
“I own one home, and am buying a house”
“That makes you an investor”
“No that’s whack. When I buy a third - buying while owning two - then I will be an investor”
You have an off-by-one error.
That was my mom and pop in the 80s they bought about one house a year. Empty derelict houses purchased from the city for between $1000 and $15,000. The city provided matching grants to fix them up. Also the city paid the rent for the Cambodian and Vietnamese migrants that came here to live. My parents invested the organization and literal sweat equity to fix up these homes.
I'm sorry I have zero sympathy for anyone who owns three homes. Fuck em
I feel there's a major distinct difference between;
- a well off family who buys a 2nd home to make sure their kids are set
- a group of well off investors who pool funds, buys a 2nd home, with intention to "flip" it in the next 1-2 years and make 10%
Both are "investors", but I'd like to think the 1st are trying to build a better future, whereas the 2nd are just arbitraging.
Intent doesn't matter; you can justify about any horrible behavior imaginable by saying you're looking after your family. I resent the commodification of housing and the destabilizing effects it has across society. Where's the upside?
Who needs more than two? You can only live in one at a time.
Why let the rentier class grow any larger than they already are?
It's not like there is an oversupply of desirable housing. And even if there were an oversupply, the answer isn't to incentivize the rich to get richer.
They don’t provide any concrete evidence for how they classify “mom and pop” (to be fair i haven't had the time to read the original paper). It’s standard operating procedure to split investment properties between many subsidiaries to limit the financial splash damage. It’s mostly a legal fiction because the property managers are directors of multiple corporations managing dozens of properties, but the courts haven't cracked down on it yet. I’m suspicious of whatever statistics they use to classify investors.
(I’m speaking only of the investors that buy to rent extract, I have no insight into the flippers)