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Big Real Estate Investing News! (article #2)


Is “Buy to Rent” Gone? – Leases on Blackstone Housing Bonds Dropped 7.6%

Just the other day, I pointed out the reality that the return of subprime home loans was only another lender scam to take private equity players and hedge funds out from the houses they’d acquired in the U.S. by simply disposing them on retail muppets. Additionally, there has been a significant reduction in the rents supporting the properties of Blackstone’s rental-home bonds from October to January. According to the evaluations of Bloomberg, the rate has already plunged to 7.6%.

Knowing that the prices are now skyrocketing across the country, the Wall Street slumlords may have been holding a substantial control on the pricing fluctuations. Truly, they don’t.

Bloomberg reports:

According to the information reported by Morningstar Inc., there was a 7.6% decline in the received rental payments for rental-home securities in the US from October to January.

Payments decreased while expiring leases and early tenant departures left residences backing the bonds of BlackstoneGroup LP’s Invitation Homes vacant, Becky Cao and Brian Alan, experts at Morningstar’s credit-ratings unit, stated in a report.  While 8.3 percent of the homes were available or acquired by overdue tenants in January, renewals on 78.5 percent of leases that ended the previous month surpassed the experts’ estimated rate of 66.7 percent.

In the mean time, one of the personnel of New York’s Blackstone, Christine Anderson, declined to make a comment.

According to Morningstar, following the moment when AAA scores were given to $278.7 million of the notes, it was then predicted that properties underlying the first offer would reach a stabilized vacancy of 8 percent.  At the same time, Ryan Stark, the Deutsche Bank AG director who assisted in underwriting the transactions, declared that this could drive Wall Street to offer rental-home bonds at an amount of $20 billion annually considering that these properties associated with smaller property owners are exactly what investors want the most.


Big Real Estate Investing News!


BlackRock’s Chief Executive Officer Larry Fink – US Housing Market More “Unsound” When Compared With Last Financial Failure


More than 6 years right after the financial collapse, and with talking heads stating the recovery as formidable as it ever was and the Fed remarking about the housing market’s fundamental pillar for its recovery, BlackRock’s CEO Larry Fink has a couple of words of cautioning for the joyful – the United States housing market is “structurally more unsound” today that prior to the previous economic crunch. As the information enters in weaker, in spite of expectations of a post-weather bounce, the simple fact that the United States housing market is “more dependent on Fannie and Freddie than we were before the crisis,” is an issue for the United States tax paying citizen and in contrast to Mel Watt’s ‘free credit for everyone’ strategy to broadening the GSE’s function, Fink states with strong a underwriting commitment, ownership of budget-friendly housing can once again turn into the groundwork for American households. Therefore, Watt’s simple ‘Subprime 2.0′ or Fink’s tough ‘American Dream’?

As Bloomberg reports:

———————————————————————————————————————————————— 

BlackRock’s Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac.

“We’re more dependent on Fannie and Freddie than we were before the crisis,” Fink said today at a conference held by the Investment Company Institute in Washington, noting that he was one of the first Freddie Mac bond traders on Wall Street.

Fink co-founded BlackRock in 1988 after a career at First Boston Corp., now part of Credit Suisse AG, where he was known for his work slicing and pooling mortgages and selling them as bonds. Fink, who has built New York-based BlackRock into a $4.4 trillion money manager, said today that with strong underwriting standards, ownership of affordable homes can again become a foundation for American families.

————————————————————————————————————————————————

But exactly how is this attainable? Everyone is stating the banking institutions have been in excellent shape? Additionally, the thought of housing is recuperating? That things are all on their way normal again? As Fink illustrates…. it isn’t and we’re heading to Subprime 2.0 when the administration gets what they want.


Case Study Interview With James Hall

Jason Lucchesi recently had the opportunity to interview student-investor,
James Hall.

James Hall is a graduate of the program Government Loophole Magic, and
recently completed a deal while he was in another country.

On this training webinar presentation, the following is covered:

1) How James completed 90% of this deal while working in a tropical
paradise
2) How James lined up funding with BestTransactionFunding.com for this
deal
3) How James found the ultimate end buyer for this transaction on a social
networking website
4) How James managed to truly only invest about 4 hours of his own time on
this deal from start to finish
… and so much more!
 




Big Real Estate Investing News! (article #2)


Is “Buy to Rent” Gone? – Leases on Blackstone Housing Bonds Dropped 7.6%

Just the other day, I pointed out the reality that the return of subprime home loans was only another lender scam to take private equity players and hedge funds out from the houses they’d acquired in the U.S. by simply disposing them on retail muppets. Additionally, there has been a significant reduction in the rents supporting the properties of Blackstone’s rental-home bonds from October to January. According to the evaluations of Bloomberg, the rate has already plunged to 7.6%.

Knowing that the prices are now skyrocketing across the country, the Wall Street slumlords may have been holding a substantial control on the pricing fluctuations. Truly, they don’t.

Bloomberg reports:

According to the information reported by Morningstar Inc., there was a 7.6% decline in the received rental payments for rental-home securities in the US from October to January.

Payments decreased while expiring leases and early tenant departures left residences backing the bonds of BlackstoneGroup LP’s Invitation Homes vacant, Becky Cao and Brian Alan, experts at Morningstar’s credit-ratings unit, stated in a report.  While 8.3 percent of the homes were available or acquired by overdue tenants in January, renewals on 78.5 percent of leases that ended the previous month surpassed the experts’ estimated rate of 66.7 percent.

In the mean time, one of the personnel of New York’s Blackstone, Christine Anderson, declined to make a comment.

According to Morningstar, following the moment when AAA scores were given to $278.7 million of the notes, it was then predicted that properties underlying the first offer would reach a stabilized vacancy of 8 percent.  At the same time, Ryan Stark, the Deutsche Bank AG director who assisted in underwriting the transactions, declared that this could drive Wall Street to offer rental-home bonds at an amount of $20 billion annually considering that these properties associated with smaller property owners are exactly what investors want the most.