Earlier quoted context omitted.
And the one person operated apartments are usually undercapitalized and doesn’t have a professional maintenance staff. The ones I have stayed at have on site office personnel. These were both in the north suburbs of Atlanta - one was mid upper end at the time and the other was in one of the more affluent neighborhoods
Huh? I have no reason to care about staffing or capitalization. Those aren't my concerns. Those concepts are beyond my purvey as a tenant. I care only about timeliness. My entire relationship any landlord is that of paying money, and receiving housing and services relating to that housing. When the aircon dies and it takes weeks of pestering for the corpo entity to address it, that's a problem for me that changes the…
How private equity is changing housing
271–280 of 312 posts
Re: How private equity is changing housing
#272Earlier quoted context omitted.
Huh? I have no reason to care about staffing or capitalization. Those aren't my concerns. Those concepts are beyond my purvey as a tenant. I care only about timeliness. My entire relationship any landlord is that of paying money, and receiving housing and services relating to that housing. When the aircon dies and it takes weeks of pestering for the corpo entity to address it, that's a problem for me that changes the…
Capitalization is your concern because if your landlord is pinching pennies barely scraping by they take shortcuts and slow walk repairs. If they lack staff, they don’t have repair people on site that can fix things.
Which possibility might your exquisitely-refined sensitivities detect to be the most likely?
Re: How private equity is changing housing
#273Earlier quoted context omitted.
Capitalization is your concern because if your landlord is pinching pennies barely scraping by they take shortcuts and slow walk repairs. If they lack staff, they don’t have repair people on site that can fix things.
So either I'm telling the truth, or I'm a filthy liar that was sent on behalf of Little Individual to screw with y'all. Which possibility might your exquisitely-refined sensitivities detect to be the most likely?
Re: How private equity is changing housing
#274Earlier quoted context omitted.
Why is it better to rent from individuals? They have the same profit motives as corporations.
Why is it better to buy local instead of from Amazon? I mean: The local place has the same profit motives, so they're basically the same thing -- right?
It's not very common that local merchants give a damn about the people in their community.
Re: How private equity is changing housing
#275Earlier quoted context omitted.
Dave Ramsey, commonly described as "Christian finance guru", who had a show on the "Christian Broadcasting Network".
... pitching his books and preaching the Prosperity Gospel, which is antithetical to mainstream Christianity and not good financial advice.
Re: How private equity is changing housing
#276Earlier quoted context omitted.
So either I'm telling the truth, or I'm a filthy liar that was sent on behalf of Little Individual to screw with y'all. Which possibility might your exquisitely-refined sensitivities detect to be the most likely?
No I’m saying given a choice between working with a company that has 500 units an onsite staff and on call repairmen and Billy Bobs one person operation, statistically you are more likely to get better service from a professionally managed complex.
I'm an outlier; I understand that most rentals in the US are not owned by individuals, but instead by [large-ish] corporations. I understand that it is impossible for my experience to be broadly shared.
Re: How private equity is changing housing
#277Earlier quoted context omitted.
Bonus Depreciation: https://tax.thomsonreuters.com/en/glossary/bonus-depreciatio... Cost Segregation: https://warrenaverett.com/insights/what-is-cost-segregation/ I believe bonus depreciation is time limited (unless Congress renews it).
Residential rental property does not qualify for bonus depreciation.
Re: How private equity is changing housing
#278Earlier quoted context omitted.
Why would they buy properties and not assets that are even easier to buy and sell such as stocks, ETFs, mutual funds, bonds, etc. That said, I would probably not be opposed to restricting foreign ownership of residential real estate, if indeed it is that big an issue.
The idea is that tracking it is effectively impossible for a foreign government...and we've made that whole infrastructure incredibly easy via making it legal for LLCs to purchase homes. We don't prevent foreigners from forming LLCs, and often times there are brokers that make their vig on doing just that for wealthy foreigners - they set up a myriad of LLCs to protect the identity of a buyer, who then drops $1mm+ on…
They can offset this and maybe even get some cash flow by hiring a management company to rent it out, but then it's not sitting vacant, which was the original complaint.
Re: How private equity is changing housing
#279Earlier quoted context omitted.
Why is it better to buy local instead of from Amazon? I mean: The local place has the same profit motives, so they're basically the same thing -- right?
You tell me! Local merchants just warehouse products they didn't manufacture and don't know anything about, and they give you much worse customer service and are more expensive than Amazon. It's not very common that local merchants give a damn about the people in their community.
Let me tell you about the bodega man.
I'd walk over there to his shop if I wanted to buy something -- a soda, some beer, a loaf of bread or a gallon of milk or some pasta sauce or whatever. It was a good bit of healthy exercise, and it was as local as it could get.
He didn't keep a ton of inventory (it was not a big shop), but he'd stock whatever his customers wanted to buy.
I used to smoke cigarettes. One day when I stopped into the bodega, the bodega man asked me why he kept seeing me walk past his place to the big corpo gas station next door.
"They carry my brand of smokes, and you don't," I said.
He asked me what I smoked. I produced a pack from my pocket and showed it to him. He said he wasn't sure if he could get them from his distributor but that he would try. He then asked me what I paid for them next door, and I didn't really remember so I guessed -- and I guessed low.
"I think they're about six bucks."
A few days later, I was back at the bodega to buy whatever it was and he was proud to show me that he'd made a spot for my cigarettes and got some in stock. They were marked at $7.42 (I remember that part very precisely).
He asked if I wanted some, and I'm thinking to myself "Sure, dude. Fine. I'll buy your expensive cigarettes that you got in for me."
The bodega man rang them up at $6.00. I paid the man, and said "Thank you!"
They were $6.00 for me from then on, which made it the cheapest place in town (remember, I guessed low). His employees charged me $6.00 without any prompting on my part, too. They were only stocked because I wanted them, and they were sold to me at a price that I was very happy to pay. If anyone random wanted them, I'm sure that the price was $7.42.
Or at least, this all lasted until one day, when the bodega man suddenly fell over dead while coaching his team at a kids' softball game. IIRC, it was a brain aneurysm. The bodega didn't open back up the next day or ever again. The last time I went by there -- years ago, now -- the windows that I could see past the plywood had been shattered.
Sometimes I wonder about the Bud Light-emblazoned Weber charcoal grill that his beer distributor placed there as a part of a promo display. It was still in there when he died.
I had asked him about that one day, just because I was curious: "Hey, so: What happens to stuff like that when the promotion is over and the next display shows up?"
And he thought for a moment, and said "I'll tell you what: When the promotion is over, you can have it. It's your grill."
I wish I could have made any parts of these stories up, but it's instead just kind of sad to recall.
---
Anyway, enough stories of the bodega man.
I now have questions for you.
How many specialty items has Amazon kept in stock just because you, individually, wanted to buy them?
How many items have you successfully (even if accidentally) negotiated an ongoing price with Amazon on?
How many softball teams has your Amazon guy coached in your town?
How many minty new Weber grills has Amazon offered to give you before they fell over dead?
If your Amazon guy fell over dead tomorrow, would you even notice?
(I only lived near that bodega for a few months. Want me to tell you some stories about the next bodega man?)
Re: How private equity is changing housing
#280Earlier quoted context omitted.
this sounds nice, but neglects the fact that (1) materials cost has gone up and (2) zoning requirements exist. (1) means its just more expensive to build overall, and (2) means that a lot of proposals for apartment complexes get voted down.
also neglects the market's appetite for this risk of building in the current environment, which is the biggest problem. market gonna act like a market