The FED Needs a Clue
What’s happening in the housing market & are they favoring investors over homeowners? Their policies ironically may be slaying iBuyers who used borrowed funds to purchase housing. This will create a huge amount of volatility and MAY start and fuel a liquidity crisis, IMO (I’m not an investment advisor.) However, if you are thinking you’ve been priced out of the real estate market, you may want to look for these iBuyer properties & make a low ball offer!
1. IBuyers are some of the parties who drove up the prices of housing during 2020-2021
2. So did homeowners, although they purchased & largely locked in low 30 year mortgage rates
So many of them are sitting still because they want to keep their low locked in mortgage rates.They have room to breathe.
3. IBuyers are some of the most indebted property owners now
Check out the recent SEC filings on them.
4. The cities where iBuyers were very active are now seeing major issues with these companies
Check out their past annual reports about the cities they were targeting.
5. In some cities iBuyer companies are selling the properties they purchased with borrowed money at $100k less than their purchase price
They’re looking to offload whole portfolios of houses to preserve whatever gains they may have since they may be unable to refinance their bonds.
6. In one iBuyer company alone, they have $350 million worth of homes for sale
Look at their SEC filings if they’re public companies to see how they came up with those values
7. The iBuyers bought houses at the top of the market
8. They got caught up in their own hype & bought high only to sell lower now as they face higher interest rates
9. In just one of these companies their portfolios could be purchased for a HUGE discount
Like $100 million or so! I might buy a Powerball ticket just to have the daydream of playing a shark & negotiating a portfolio purchase from one 😂
10. If no one purchases their complete portfolios their bond & stock share investors are going to be mighty upset
If you’re into options or futures contracts I’d look at these companies for some major opportunities!
11. Just remember, I’M NOT AN INVESTMENT ADVISOR!
But I knew there was a major problem with their algorithms.