Skip to comments.Blackstone to buy $1 billion worth of Tampa Bay homes for rentals
Posted on 09/22/2012 11:52:31 AM PDT by ruralvoter
A Wall Street behemoth plans to spend $1 billion on Tampa Bay's hobbled housing market, dispatching teams of brokers to scour neighborhoods and buy hundreds of homes a month.
But rather than resell the homes, the Blackstone Group is opting to become a landlord, renting the homes to tenants including foreclosed ex-homeowners burned by the housing crash.
Blackstone, one of the nation's largest private-equity firms, plans to buy as many as 15,000 homes in Tampa Bay over the next three years, many of them foreclosures, capitalizing on decimated home prices and growing rents.
The shopping spree, and those of half a dozen other big investment firms and hedge funds, could radically change the local home landscape, as big-money brokers compete with first-time buyers and mom-and-pop landlords over homes in tight supply.
"It's a land grab unlike anything we've ever seen," said Peter Murphy, CEO of Home Encounter, the largest manager of rental homes in Tampa Bay. "You're going to drive through parts of town and all of it is going to be institutionally owned."
(Excerpt) Read more at tampabay.com ...
"More than 60 VIP donors who attended a fundraiser at the home Blackstone CEO Hamilton James" Price? $35,800 per person. PHONES were not allowed in the room.
This was an OBAMA fundraiser.
Gee....I wonder how much unspent TARP bailout money Blackstone may have leftover from Obama’s early promises?
I further wonder whether anyone outside the corporate confines of Blackstone wonder whether their possibly-financed buyout of these distressed homes will do to the local rental market? Will they become Section 8 landlords? (Likely).....
Lastly, I wonder what connection the controllers of Blackstone may have to the Administration? To Holder (his people), to Obama (his Muslim Brothers), to Chicago?
Why,one might almost think that Osama Obama *wanted* these folks in Florida to be repossessed so that $$$ would flow into Rat Party coffers!
Giant Democrat hedge funds as monster landlords?
This is creepy and not good.
Section 8 will simply become standard government housing. And if you want a place to live, you had better vote right...
UPDATE FROM THE same newspaper:
Blackstone said it will not spend 1$ Billion, but won’t say how much it will spend. Maybe only $700 Million?
Let’s face it, a bad headline for Obama in Florida is not a good idea right now. Toward the end of this article, the original source for this information admits he had a phone call with a person from Blackstone who told him to “shut up”.
Renters destroy neighborhoods.
Bankers are looking at bundling the future payments as trusts or securities to sell to investors, much like mortgages were pooled and sold during the housing boom.
Not necessarily true.
CERTAIN TYPES OF RENTERS destroy neighborhoods. The kind that have no personal pride, are loud, obnoxious, can’t fix anything, won’t upkeep anything.
Some renters are just saving up to become homeowners and are just fine. If you remember the 70s mortgage rates were double digit and a lot of people with steady jobs and responsible people couldn’t get a loan, or knew paying 17% interest on a loan was too much for their income.
He was an attorney for slumlords in Chicago, so what’s new?
This is true, but interest rates are low. (at least right now) Issues now would be about job stability to save for a downpayment or ruined credit scores from people losing their jobs.
Watch this: There will be “legislation” coming out of Congress during the Obama second term to address this “new” economic activity. The “legislation” will be similar to the Community Reinvestment Act enacted in the 70’s (which eliminated the mortgage lending underwriting convention of “redlining” neighborhoods with poor credit risks in order to safeguard necessary bank assets). It will address a perceived “inequality” in the housing market and mandate a requirement for the landlords to provide rental housing for Section 8 recipients (Section 8 is the program where indigents get their housing rental payments paid entirely by the federal government) for a very high proportion of the available housing vacancies. These Section 8 recipients will be illegals and minorities. They will destroy your and my neighborhood, turning these into slums because they will have NO STAKE in the homes themselves. They will NOT be homeowners. This is the Democrat/Obama dream: the final deconstruction of ALL middle class enclaves, values, and venues.
Having been employed in the past by a company that was taken over by this bunch, I can state with reasonable confidence my opinion that you don’t want to become part of their little feudal fiefdom, and that the neighbors will end up unhappy with whatever they have in mind. Owning that many homes looks rather like leverage over the city to me, and I suspect it’ll be used.
Sounds like a REIT on Steriods.
Anyway I can see why they are doing it, Talk to a Financial Pro on the down low, here is what they will tell you. Their post 08' gun shy clients do not want equites, even Utilities with the Divee, can't build them a bond ladder with Treasuries no yield. Everyone wants yield right now with "no" risk. This sounds made to order and maybe to good to be true...
First thing that popped into my head as well. There a site where one determine where these neighborhoods are and thus avoid them?
But not these renters. These renters are buyers who are on the early stage (Blackstone hopes) of a real estate recovery (a pick up in rentals is the first sign of a real estate recovery).
These buyers are probably folks who once owned and lost in foreclosure. They are hoping to head back up the ladder.