Financialization of Rents Gets Taxpayer Guarantees http://wolfstreet.com/2017/01/24/us...d-securities-blackstone-invitation-homes-win/
Yep always creating complex puzzling investment vehicles to make unlimited amounts of money..... It's almost as if this plan was in place before the huge collapse of the housing bubble....now that Blackstone is the biggest holder of single family houses in the world there is no way housing prices can ever fall.... Government guarantees allow the mega-landlord to sell these securities at a lower yield and thus offer landlords like Blackstone’s entity even cheaper financing for future home purchases, and thus lower costs and greater profit potential.
I own a home that I rent out. I have a mortgage for this home that is backed by Fannie Mae. I imagine there are thousands of other people like me, most of whom probably like me bought their owner occupied home and at some point moved and kept their original home as a rental. From the IPO info it looks like this is very much like a homeowner with a 75% LTV, which is 5% less than the conforming loan standards, so technically this is less of a risk than if I had a 80% LTV, for example. How is this any different than what Fannie Mae is already doing with me and the thousands of other homes like mine, from a risk perspective?