Wall Street Landlords target foreclosed homes
It is overwhelming to see the outcome of the disastrous 2007 foreclosure crisis that has now created a rental housing market disaster . Here we are 7 years later and the situation has little improvement, the Wall Street Landlords are now targeting those foreclosed homes in a rush to purchase and renovate homes to rent to thousands of people.
The Wall Street Investors have Spent $12 Billion Dollars
Well, let me put it this way, without having to slam Wall Street. I believe that they are responding to a political and social need to make amends to the American people, but unfortunately does not have the compassion or understanding to realistically implement a solution to resolve the great majority of the complaints…or do they even care.
As we all know, Wall Street is the largest investment company with billions of dollars to spend. Since 2011 investors such as Colony American, Invitation Homes and America Homes 4 Rent have purchased more than 75,000 homes to rent out. Amongst all of these investors approximately $12 billion has been spent to purchase and renovate these homes according to the Huffington Post article by Ben Hallman and Jillian Berman dated 1/25/14.
Investors have infused the real estate rental market with billions of dollars using hedge funds and private equity groups. Thousands of families have moved into newly revamped rental homes owned by investors even
Disgruntled wall street tenants have posted hundreds of critical and nasty remarks on Yelp, Zillow and Topix message boards complaining of the filth and uninhabitable living conditions. This wall street investment has proven to be disastrous.
Tenants complain that their Wall Street Landlord management companies do not make the renovations that was agreed upon prior to renting the homes. The only repairs or renovation was cleaning and painting to make the home look liveable. Many tenants rented the homes only to find mechanical and plumbing problems, such as broken air conditioners, water heaters and toilet…..not to mention, vermin infestation and rodents.
Tenants are frustrated with the lack of ignored phone calls and emails from the management companies that were hired to service their maintenance needs.
Management Companies are Frustrated
Similarly, the Wall Street Management Landlord companies are just as frustrated because they have been inundated with service calls from tenants to handle thousands of homes. What makes this situation even worse was that the management companies failed to oversee dozens of independent contractors that were spread out over large geographical territories that became overwhelming. Unfortunately their attempt to hire staff as quickly as possible to handle the calls, did not resolve the tenants complaints.
These problems have arisen because obviously there was not enough plan or thought that went into developing such a mas sized scale of rental homes. It is not uncommon for Wall Street to move hastily on projects without thoroughly thinking through the consequences for the vast majority of the American people. Needless to say The 2007 Real Estate Bust. Remember, it’s all about profits. But do they really care?