Hedge Funds with Massive holdings of Rental Homes

[Bruce Lynn]

They looked like geniuses when the market was down and they could buy up 1000s of houses for cheap 4-8 years ago.

Now how is that going to look at the end of the quarter?   How will that fair for DFW, Phoenix, Tucson, Tampa and wherever else they bought hundreds if not thousands of houses?

Same question about the ibuyers like OpentheDoor, Dillow, DoorWindow and the others?   I always said they would look like genius when the market is going up 1% a month.  Buy cheap, take 2-3 months to rehab while the market is going up 1% a month and almost guaranteed to make money....even though I think Dillow said they lost money on nearly every transaction.  Probably by paying too much.  I think where the rubber hits the road is when the market stops going up....like probably this month or if it starts going down...and how fast it goes down.   See how long the venture capital money lasts...or if they can be smart enough to make money in a down market.