patrick.net

The key thing about this is that they don't need to make "big bucks" right? They just need to make 4 or 5% and they'll be happy. This is why I can't get myself to spend big bucks on a house. I'm putting my money with Wall Street. They're in control.(Almost literally, given the POTUS's resume)

Of course, I get that 4 or 5% on the amount they have to invest is "big bucks" monthly/daily equalling many times most people's lifetime earnings.

wall street cant manage money,
what makes anyone think they can manage houses

quote from article: "Wall Street investors and other big institutions account for 70 percent of home sales in some Florida markets, raising doubts about the state’s housing recovery."

Meaning the big banks (i.e., Citigroup, etc.) are buying up homes with stock market capital gains. The money from the Federal Reserve quantitative easing programs was used by the banks to invest in the stock market. So now they are taking some of the money out of the stock market to buy homes.

Follow the money.

Wall Street buying single family homes to rent out is a clear sign of Bubble 2.0.

fedwatcher says

Wall Street buying single family homes to rent out is a clear sign of Bubble
2.0.

Looks as though it's a clear sign of more money to be made than on Wall Street, or a lack of confidence in Wall Street, or both.

except Wall Street always chose to invest in liquid assets, it's why they never did Venture Capital, or any long term investments.

The whole point of high speed trading was this was the ultimate Wall Street investment. In for a millisecond and out.

buying houses? They need algorithmic analysis, every house is different, it will need lots of maintenance, the maintenance becomes expensive,

All Wall Street is doing is creating an enormous amount of slum housing.

What's worse, is it used to be illegal for banks to own property.
The point was the banks would own the Notes/mortgages/lease payment streams and they would use that cash for cash, they never wanted to own
anything because that way they didn't have to ever leave their desks.

upisdown says

Looks as though it's a clear sign of more money to be made than on Wall Street, or a lack of confidence in Wall Street, or both.

The major banks are just taking some or all of their winnings from the S&P 500 and gold gambling tables and going to another game table at the casino.

adarmiento says

The major banks are just taking some or all of their winnings from the
S&P 500 and gold gambling tables and going to another game table at the
casino.

So??? Who cares where their money came from, at least it's being put to use throughout the US, as opposed to going in the pockets of Wall Street players and concentrated in NY City/Manhatton.

patb says

buying houses? They need algorithmic analysis, every house is different, it
will need lots of maintenance, the maintenance becomes expensive,

All Wall Street is doing is creating an enormous amount of slum housing.

Economies of scale, that's one of the reasons for going all-in big. And they don't want maintenance because that costs, that's why they invest heavily on the front end to prevent that, and they do that WITHOUT any government grants, incentives, or BS TIF money. A lot of those properties desperately needed work and all the previous owners couldn't, and didn't make that happen. How the hell is that a bad thing?

adarmiento says

The major banks are just taking some or all of their winnings from the S&P 500 and gold gambling tables and going to another game table at the casino.

Maybe, but different games have different odds. They're diversifying.

fedwatcher says

Wall Street buying single family homes to rent out is a clear sign of Bubble 2.0.

Nope, it's the opposite. It's a sign of stability. Wall Street isn't buying these homes with 0% down loans. They are paying cash, fixing them up, and renting them out.

It's not like 2004-2006 when people were buying homes with 0% down and flipping them for huge profits or extracting huge amounts of home equity.

The worst that can happen now is somehow things get out of whack and home building and rental building increases beyond demand. Then rents would start crashing. And wall street would lose some money.. but you don't walk away from a home you own outright.

Let me know when Wall Street starts taking huge home equity loans on all their rentals.. then you can tell me we have a problem brewing.

All that's happening now, is Wall Street is forcing most Americans to rent, instead of buying and paying down a mortgage. They are screwing the renters by forcing them to pay more to rent than it would cost them to a short while ago.

BoomAndBustCycle says

Let me know when Wall Street starts taking huge home equity loans on all their rentals

That's not going to happen as long as they can get all the free money they want from the Fed.

BoomAndBustCycle says

All that's happening now, is Wall Street is forcing most Americans to rent,
instead of buying and paying down a mortgage. They are screwing the renters by
forcing them to pay more to rent than it would cost them to a short while
ago.

That's assuming all those renters are/were eligible to buy instead of renting, and that's not always the case because of past money mistakes or whatever.

The rest of what you wrote I agree with 100% though. All the HELOC money pulled on numerous houses, and yet the house was still in need of repair, and an over-rated/inflated price too.

I have an idea for homes owned by banks that would help society in general and I'm sure a lot of people would find this a *very* worthy cause. Banks would probably think it's a great idea, too, but I'm not sure how to go about talking to "those in the know".

Does anyone know who I could contact about it? Is there a central banking association of some sort? Fannie Mae? I'm just at the beginning of this very worthy project.

Thanks!

Musica2 says

Is there a central banking association of some sort?

http://www.aba.com/Pages/default.aspx

Thanks for the info, Fineho. Much appreciated!