Comment by throwup238

Comment by throwup238 3 days ago

15 replies

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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)

tcbawo 3 days ago

LLCs need to declare the beneficial owner(s), which is supposed to give transparency and KYC to corporate structures like that.

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  • rubyn00bie 3 days ago

    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.

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    • paulryanrogers 3 days ago

      Sounds like a federal law is needed to pierce these exploitive veils.

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      • giantg2 3 days ago

        It's actually not, because it's a non-issue. The privacy of a Wyoming LLC doesn't mean protection. Your name isn't on any of the public records documents, but a court order can still force the disclosure of the interested parties.

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      • danaris 3 days ago

        ...Which, sadly, means that it's almost certainly not going to happen for the foreseeable future.

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giraffe_lady 3 days ago

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.

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