Stage Two of the Housing Bubble Begins: Blackstone to Lend to Others for “Buy to Rent”
We also know that the current rebound in the U.S. housing market is a centrally planned monster, led by private equity firms with access to cheap money and laundered foreign capital flooding into depressed markets, crowding out American families looking to purchase a home. Well now that Blackstone has spent more than $5 billion in its “buy-to-rent” scheme, it wants others to be able to “participate” in this wonderful investment opportunity (after them of course).
Blackstone Group LP, the private-equity firm that has spent $5 billion on more than 30,000 distressed houses, is preparing to expand its bet on the housing recovery by lending to other landlords.
The firm, which already owns more rental homes than any other investor, has set up B2R Finance LP to offer loans starting at $10 million, according to four people who reviewed the terms. B2R is reaching out to landlords with portfolios of properties seeking to grow in the burgeoning industry for single-family homes to rent, said the people, who asked not to be identified because the discussions are private.
Jeffrey Tennyson, the former chief executive officer of mortgage originator EquiFirst Corp., is running the firm, which stands for buy-to-rent. He previously led EquiFirst to become the 12th-largest wholesale subprime lender in the U.S. by 2007, when Barclays Bank PLC bought it. The London-based bank closed the business two years later after the market collapsed.
So basically we continue to recycle the same characters from the last housing bubble to come on in and do it again. It really makes you wonder if the whole housing bubble and economic collapse wasn't a planned event by the wealthy elite to put the middle class in its place and further suck the wealth from the productive class for these vampires.
Buy to rent may have been the ultimate goal of their scheme to create a permanent underclass with no permanent roots and dependent on their wealthy overlords for everything from housing to jobs to the food they put in their mouths. A class of people permanently mired in debt and unable to pull their way out who they can control from cradle to grave.
Originally posted by samkent
Don't blame the banks for loaning money.
Blame the person for borrowing what they can't repay.
But we'll still blame the banks for packaging up that debt into "Mortgage Backed Securities" and selling the same debt multiple times... fraudulently. We'll also still blame the "Ratings Agencies" who continued to give AAA ratings to that junk, knowing it was worthless, to attract new investors to fleece.
Many landlords have been constrained since they’ve deployed all their equity and would have to sell assets to buy more homes, according to Cisterna.
“A lot of our clients are capped between 25 and 100 homes, and with good loans these investors are going to be able to triple their holdings,” he said.
Sell assets to buy assets? Come on, that sounds like capitalism. This is a centrally planned ponzi, so that just won’t work.
Cerberus’s First Key has completed two loans, according to a person familiar with the business started by the New York-based investment firm. The company aims to provide $5 million to $100 million of financing to rental investors — unable to secure credit lines from Wall Street — who’ve also outgrown government-backed mortgage guarantors.