American Rentier Society

[boutons_deux]

A Promising Court Victory for Mobile-Home Residents


In recent years, corporations have bought up mobile-home parks and begun squeezing residents for profits. Tenants have started pushing back.

The new owner raised her rent by 14.3 per cent, to three hundred and twenty dollars, and then raised it again a little more than a year later to three hundred and forty-five. A year after that, it went up to three hundred and eighty.

She applied for, and received, Section 8 government-housing vouchers to help defray the cost. She then asked Table Mound’s owners

if she could use the vouchers toward her rent. To Klossner’s surprise, the park manager said no.
a person working full time for minimum wage would not be able to afford a one-bedroom apartment in any state in the country.

Mobile-home parks ... have increasingly come under the ownership of

financial investors who take advantage of the lack of regulation in many states to squeeze their tenants.

It’s a situation in which the owners of the park have almost all of the leverage.

Table Mound is one of dozens of parks owned by limited-liability corporations affiliated with the investors Frank Rolfe and Dave Reynolds,

who helped pioneer mobile-home-park investing by

buying parks,

aggressively raising rents and utility costs,

reducing maintenance,

implementing fines and fees, and

evicting tenants freely.

he boasted about refusing to answer phone calls from his tenants, Rolfe wrote, “There is no tenant issue that demands instant service.

Rolfe once compared

owning a manufactured-housing park to “owning a Waffle House where the customers are chained to the booths.”

https://www.newyorker.com/business/currency/a-promising-court-victory-for-mobile-home-residents

[boutons_deux]

Warren Buffett's Exploitative Mobile Home Investment

Warren Buffett’s company Clayton Homes, the biggest mobile home manufacturer in the U.S., has continued to profit from high interest rate loans.

The Oracle of Omaha has sold low-income Americans the dream of ownership for nearly 20 years, and

his investment company Berkshire Hathaway makes money on the loans,

since they own the company that Clayton urges its buyers to go through.

Many of the people buying these homes are minorities and have helped to fuel Clayton’s $13.7 billion mortgage portfolio (https://www.reuters.com/article/us-berkshire-buffett-clayton/clayton-homes-mimics-buffett-approach-as-it-grows-idUSKBN1I51ZG).

Interest rates can be as high as 13.5% or more, and

like a vehicle, lose as much as half its value in three years.

These rates make it hard for mobile-home owners to leverage equity from their purchase in order to buy a traditional home.

The majority of mobile-home residents, 23% are between the ages of 18 to 29 and have an average household income of $28,400.

If that’s not alarming enough, in 2015, the average sales price for a new manufactured double-wide home was around $110,000.

https://www.forbes.com/sites/korihale/2019/04/18/warren-buffets-exploitative-mobile-home-investment (https://www.forbes.com/sites/korihale/2019/04/18/warren-buffets-exploitative-mobile-home-investment/?sh=7c446b0e1507)

[boutons_deux]

Are Private Equity Firms to Blame For Rising Home Prices?

Wall Street is an easy scapegoat.

The real villain lives much closer to home.

https://marker.medium.com/private-equity-is-buying-your-block-with-your-neighbors-money-8d37e98ebc2d[/COLOR]

[boutons_deux]

A $60 Billion Housing Grab by Wall Street

Hundreds of thousands of single-family homes are now in the hands of giant companies —

squeezing renters for revenue

and putting the American dream even further out of reach.




https://www.nytimes.com/2020/03/04/magazine/wall-street-landlords.html

[boutons_deux]

Private Equity Companies Continue Buying Nursing Facilities

https://medicareadvocacy.org/private-equity-companies-continue-buying-nursing-facilities/

... passive cash flow

[Thread]

A couple a times thru the decades bouts hits the nail squarely. This is one of them times.

bouts

[boutons_deux]

What You Need to Know About “Build to Rent” (BTR):

A Break-Through in Rental Housing

Why Are Investors Interested in Build-to-Rent?

Beyond the demographic trends and desirable renter profiles, the Build-To-Rent sector has also passed through its initial concept phase–BTR projects have been successfully operating for several years–and investors are equipped with better comps and operational data, enabling them to make more educated decisions. Meanwhile, the sponsors behind these BTR communities often have business plans focused on delivering strong returns with out-performing upside.

The BTR market has also demonstrated a unique ability to achieve “Market Rate Premiums” over competing Class A multifamily assets.

CNBC reported (https://www.cnbc.com/2019/06/26/suddenly-the-build-to-rent-single-family-housing-market-is-exploding.html) that, “…the rents for single family are growing fast at 4.5% annually now compared with 3% rent growth for multifamily apartments, according to John Burns Real Estate Consulting.

There is also much less turnover in single-family rentals, and the rental market is much less volatile than the home sales market.”

Now that many lenders (including the Agency Lenders: Freddie Mac and Fannie Mae) have underwritten and approved the product type for loans, the investor community is able to expect more consistency on debt terms and to more easily model a long-term hold period.

As an asset class, BTR has seen exit cap rates that compare well with traditional multifamily assets, with cap rates ranging from 4.75% to 5.5%.

https://www.crowdstreet.com/resources/topics/investing/build-to-rent

[SnakeBoy]

Warren Buffett's Exploitative Mobile Home Investment

Warren Buffett’s company Clayton Homes, the biggest mobile home manufacturer in the U.S., has continued to profit from high interest rate loans.

The Oracle of Omaha has sold low-income Americans the dream of ownership for nearly 20 years, and

his investment company Berkshire Hathaway makes money on the loans,

since they own the company that Clayton urges its buyers to go through.

Many of the people buying these homes are minorities and have helped to fuel Clayton’s $13.7 billion mortgage portfolio (https://www.reuters.com/article/us-berkshire-buffett-clayton/clayton-homes-mimics-buffett-approach-as-it-grows-idUSKBN1I51ZG).

Interest rates can be as high as 13.5% or more, and

like a vehicle, lose as much as half its value in three years.

These rates make it hard for mobile-home owners to leverage equity from their purchase in order to buy a traditional home.

The majority of mobile-home residents, 23% are between the ages of 18 to 29 and have an average household income of $28,400.

If that’s not alarming enough, in 2015, the average sales price for a new manufactured double-wide home was around $110,000.

https://www.forbes.com/sites/korihale/2019/04/18/warren-buffets-exploitative-mobile-home-investment (https://www.forbes.com/sites/korihale/2019/04/18/warren-buffets-exploitative-mobile-home-investment/?sh=7c446b0e1507)

Yeah but Buffet publicly says he wishes he paid higher taxes so he's a good guy