Comment by iknowSFR
3 days ago
Couple things to add. First, rates are much lower when you’re leveraging 10,000 homes at 3:1. That allows you to purchase 20,000 additional homes, which isn’t something the normal individual can do. Second, most of this borrowing was done during the 0% interest days and when rates went up after Covid, a lot of the operations grinded to a halt. Third, there’s no regulatory environment for rent rates and rate increases.
> First, rates are much lower when you’re leveraging 10,000 homes at 3:1
What interest rate do you think rich people are getting?
As for the Covid interest rates, those were available to everyone.
Third, we're talking about buying houses, not renting.
> What interest rate do you think rich people are getting?
Depends how rich. Banks have long been known to offer below market or even zero interest loans to the richer segments in exchange for/in the hope of securing other business from them.
> in exchange for/in the hope of securing other business from them.
I.e. they'll be paying the market rate one way or another.
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