Bloomberg Article: Upcoming collapse of rental market

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Bloomberg Article: Upcoming collapse of rental market

Pete Abilla

Investor · Salt Lake City, UT · Member since 2019 · 38 posts · 19 votes

Thoughts on this?

https://www.bloomberg.com/news/articles/2020-05-12/if-landlords-get-wiped-out-wall-street-wins-not-renters

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Sharlene Mulchandani

Cincinnati, OH · Member since 2020 · 299 posts · 476 votes

@Pete Abilla Thank you so much for sharing a link to this article, it was such an interesting read! Many tenants think that landlords are simply being greedy and are probably wondering how they are being asked to pay rent during these trying times. But in reality, they are not thinking of all the costs involved for the landlord - property taxes, insurance, maintenance and mortgage payments, all these add up.

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Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
Wow- great article. It seems our story is getting out there! Only took a couple months, but it is getting out there.
Winter is coming.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
Yes, this "pandemic" could wipe out small investors.
Most investors (my opinion) purchase property with too much leverage. They make bad investments and don't cash flow in the manner taught by Brandon. They spend the cash flow instead of building a reserve or investing. They are financially undisciplined in their business and personal life. The woman in this article is a great example. I recently read "Evicted: Poverty And Profit In The American City" by Desmond and there are some examples in there, as well.
Investors that are smart will pivot and grow. The rest will fall by the wayside and a new generation will rise up to replace them.
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Matt Ziegler
Rental Property Investor · Colorado Springs, CO · Member since 2020 · 433 posts · 284 votes
6y
A interesting read to be sure. All the more reason to carefully and fully analyze properties/deals before starting.
I agree with Cody's comments.
Thanks for sharing this article.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Pete Abilla anyone over leveraged is getting squeezed. There are also a ton of investors that were banking on refinancing, taking a HELOC, or in the middle of a HML that are in trouble. Most investors are filing for mortgage forbearance that are getting hit hard by non rent payments but, being over leveraged or in the middle of a HML is serious business and can set you way, way back.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
6y
Originally posted by @Pete Abilla:
Thoughts on this?
https://www.bloomberg.com/news/articles/2020-05-12/if-landlords-get-wiped-out-wall-street-wins-not-renters

Thanks for sharing this, Pete.
Positive awareness for landlords is rare. Only 1/3 of us having federally-insured mortgages was an interesting statistic.
Warning that large corporate landlords will be worse for affordable housing than us smaller operators was on point. I hope the public reads this.
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Sharlene Mulchandani
Cincinnati, OH · Member since 2020 · 299 posts · 476 votes
6y
@Pete Abilla Thank you so much for sharing a link to this article, it was such an interesting read! Many tenants think that landlords are simply being greedy and are probably wondering how they are being asked to pay rent during these trying times. But in reality, they are not thinking of all the costs involved for the landlord - property taxes, insurance, maintenance and mortgage payments, all these add up.
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