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Hedge fund no longer wants to be landlord

By DaveM_Renter   Follow   Thu, 18 Oct 2012, 2:35pm   1,062 views   14 comments
In San Clemente CA 92673   Watch (1)   Share   Quote   Permalink   Like (4)   Dislike  

http://www.reuters.com/article/2012/10/17/us-foreclosed-hedgefunds-idUSBRE89G1TE20121017

Investors watch out!

Reuters) - One of the first big hedge funds to try to profit from a rebound in the U.S. housing market by investing in foreclosed homes is looking to cash out, even as other institutional investors are still getting in.

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1. The Professor Follow Befriend (5) 24 threads 1,297 comments Premium

   1   2:44pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (4)   Dislike   Protected   They couldn't squeeze enough rent out of the renters.

2. MershedPerturders Follow Befriend (1) 64 comments

   2   3:11pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   I think they know that the city municipalities are going to respond to this. It's called slumlording. Why the fuck did we give these banks TRILLIONS of dollars and now they own our cities? WAKE UP! It's going to be a BIG problem for some time to come.

3. CrazyMan Follow Befriend 448 comments Campbell, CA

   3   3:14pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (2)   Dislike   "It's not surprising that some investors may have overestimated rental returns," said Rick Sharga, executive vice president with Carrington Mortgage Holdings No shit, really.

4. BobMSN Follow Befriend 3 threads 98 comments

   4   3:52pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   Get burned, looking for the next sucker (;

5. New Renter Follow Befriend (3) 13 threads 2,193 comments San Jose, CA Premium

   5   5:10pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (4)   Dislike   Protected   Perhaps Iwog can help them understand where they went wrong.

6. Patrick Follow Befriend (54) 5,181 threads 6,153 comments 46 male Menlo Park, CA Premium

   6   5:42pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (3)   Dislike   Protected   The Professor says They couldn't squeeze enough rent out of the renters. Yes, the thing about rents is that no one will lend you money to pay your rent. Rents are very real in a way that prices are not.

7. MershedPerturders Follow Befriend (1) 64 comments

   7   5:49pm Thu 18 Oct 2012   Share   Quote   Permalink   Like   Dislike   Patrick says The Professor says They couldn't squeeze enough rent out of the renters. Yes, the thing about rents is that no one will lend you money to pay your rent. ever heard of a Pawnshop, hommie?

8. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

   8   6:17pm Thu 18 Oct 2012   Share   Quote   Permalink   Like (2)   Dislike   New Renter says Perhaps Iwog can help them understand where they went wrong. Once I argue with Iwog, those renting 300 units under one roof with management in place is a whole different than 300 single family houses spread in many miles.

9. New Renter Follow Befriend (3) 13 threads 2,193 comments San Jose, CA Premium

   9   12:15am Fri 19 Oct 2012   Share   Quote   Permalink   Like   Dislike   Protected   MershedPerturders says Patrick says The Professor says They couldn't squeeze enough rent out of the renters. Yes, the thing about rents is that no one will lend you money to pay your rent. ever heard of a Pawnshop, hommie? What's that?

10. 37108605 Follow Befriend 1 threads 1,055 comments

    10   5:41am Fri 19 Oct 2012   Share   Quote   Permalink   Like (2)   Dislike   War says Go ahead….. Join their club and lose your shirt(s). Like millions before them. They will. There are plenty of fools who don't realise they ARE the suckers in the game.

11. lostand confused Follow Befriend (9) 159 threads 1,528 comments Premium

    11   6:21am Fri 19 Oct 2012   Share   Quote   Permalink   Like   Dislike   Protected   Buying a giant apartment complex and managing it is totally different than buying hundreds or thousands of SFH scattered across cities and managing them. These hedge funds got a giant discount though-at least from what I read and I guess realized the bounce is meeting resistance and want to be out and dump it on the "retail" investor.

12. Mobi Follow Befriend 1 threads 238 comments

    12   9:51am Fri 19 Oct 2012   Share   Quote   Permalink   Like   Dislike   Patrick says The Professor says They couldn't squeeze enough rent out of the renters. Yes, the thing about rents is that no one will lend you money to pay your rent. Rents are very real in a way that prices are not. Exactly. Rent in my area only goes up to about $1500. Anything more than that has a very small market. So, I rather purchase $20k-$30k houses and rent out ~$600 instead of getting $1200 per month for a $120k house.

13. CaptainShuddup Follow Befriend (1) 246 threads 4,656 comments

    13   10:06am Fri 19 Oct 2012   Share   Quote   Permalink   Like   Dislike   I really have to question the Intelligence level of our(and probably the World's) economic community these days. Lowly me, a dofus than can't manage to balance his own check book so he let's his wife handle all of the bill paying tasks, knew that the housing Bull market wouldn't last. Even in its infancy stages. I even voiced my concerns and was called stupid even by 90% of the people, that know otherwise NOW. Now as these investors started buying up these houses, at a time when houses were JUST starting to come down to affordability for your better off would be home owners, to rent out. Just Who were these investors planing on renting these houses to? There's a ceiling for more than HALF of America's citizens that they can't afford to pay in rent, or Mortgage for that matter, and that magic number if I had to bet on it, would be between $1200-$1500. Sure most of those same families can scrape and save up for a deposit, and wait until their income tax return to move into a place that is $1900-$2500, but how long will they be there? Most certainly wont even make through the first year, let alone the life of their Lease. More over those that can afford $1900-$2500 in rent, could buy the same place for $1200-$1500 a month. ESPECIALLY with low interest rates the way they are, and the home prices falling. That is why communities around the country jumped in bed with the Iwogs to allow them to buy up all of the vacant properties, so these people would have no where to go to. WELP! Apparently they do, even if I were in that situation, I would move home with my family of 4 and sleep on my mothers couch, me and millions of other would be home owners. And just wait for them to lose their collective Asses, then buy those houses, for even cheaper than STOLE them for. An average family of 3 or 4 for that matter CAN'T afford $1900-$2100 rent, not when they are being already squeezed $1500 a month for Health insurance. No Sir indeed. This foot note in the Great Bubble debacle of the troubled double oughts, and another event of stupidity that caused even more depreciation in the Housing markets.

14. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    14   11:41am Fri 19 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   What? You mean rents can't rise above incomes without adverse effects on landlords?