Those who fail to learn from history…
If you love hating on banksters and Wall Street types generally, this post is for you.
If you’re looking to buy, sell or rent a house, you had better read on.
A Wall Street darling called the Blackstone Group dove head-long into the real estate market in 2011, buying up properties in nine major markets where home prices plummeted during the 2008 recession: Atlanta, Chicago, Las Vegas, Phoenix, Northern California, Southern California, Miami, Orlando and Tampa.
Their business model involves purchasing “distressed” properties – foreclosures and short sales – about half of them in cash. Then they warehouse, renovate and rent or flip the properties. They’ve bought so much property, in fact, that in the 12-month period ending in October of last year, prices in those markets surged 22%. Higher interest rates followed.
As Blackstone Group implies, the operation conducts business with other corporate entities or under a number…
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