Blackstone group is up to something...

[learn2swim]

Blackstone is buying of 3/2 homes in my area like it's going out of style.

http://www.heraldtribune.com/article/20121108/ARTICLE/121109615/0/FRONTPAGE


Blackstone Group on property buying spree

Giant real estate investment firm Blackstone Group has launched an ambitious campaign to buy distressed properties in Southwest Florida, so far doing it all with cash.
Facts


Last month, the New York firm paid $4.4 million for 37 homes in Sarasota and Manatee counties, property records show, part of an $80 million buying spree in 11 Florida counties.

Blackstone is hoping to acquire "a couple hundred" homes in the Sarasota-Bradenton area, said Scott Corbridge of Sarasota Management & Leasing, who met with Blackstone executives several months ago.

"If it fits their model, they are not afraid to pay more than the asking price to get it," Corbridge said.


Back in Sept.....

Group to buy up to 15,000 houses in Tampa Bay area

http://www.heraldtribune.com/article/20120921/ARTICLE/120929921/0/NEWS


Blackstone Group says they are buying them up to rent them out, but some of the houses are to expensive to be renting them out. They bought a home about 5 miles from me for $350,000. That's way too much for renting. Something is up, maybe an economic boom is ahead in a couple of years?

[StreetsOfGold]

What's 350,000 paper dollars? They just print the stuff up. It's nothing less than stealing while the dollar gimmick is still running. If anything they are cashing in now while the paper dollar is still considered worth something. A house and land is at least a tangible asset.

[learn2swim]

They are only buying 3 bedroom 2 bath homes. If they were buying only to rent, they would buy any property that's a good deal, like a 2/2 or a 1/1. A 3/2 home is the most popular home to buy. They plan on selling them a a huge profit I bet. They are paying the market valve or above right now. It's not like they are getting a huge discount.

And, why aren't they buying apt. complexes, triplexes ,etc, etc?

[learn2swim]

What's 350,000 paper dollars? They just print the stuff up. It's nothing less than stealing while the dollar gimmick is still running. If anything they are cashing in now while the paper dollar is still considered worth something. A house and land is at least a tangible asset.

They buying into a tax liability. To keep those properties, they gotta pay property tax. If they just wanted to protect their money, they would buy huge chunks of land without the huge tax liability. I'm sure they're gonna rent these places, but that's not the master plan, they are selling which tells me the economy is gonna turn around in a 2-3 years. The Blackstone group is full of insiders, many folks on this website know this...

[Sparky]

Huge inflation hedge, with prospects for big profit.

[learn2swim]

Huge inflation hedge, with prospects for big profit.

True, but why take on the tax liability? They can hedge against inflation much easier than this, why only 3/2 homes?

[Golden]

True, but why take on the tax liability? They can hedge against inflation much easier than this, why only 3/2 homes?

Would the amount of cash have something to do with it? Maybe 3/2 homes will get a lucky tax break?

[sunshine05]

Very odd. There is no indication that housing prices will increase anytime soon. There must be more to this.

[osoab]

How much are they insuring them for?

[Horn]

Just a drop in the bucket to keep the game running for a bit longer.

maybe buy some votes that way, "special interest funds"

[General of Darkness]

I'm looking at real-estate right now as an investment.

[EE_]

Date: September 25, 2012

From April 2012 there’s this information:

Professor Mark J. Perry’s Blog for Economics and Finance
SATURDAY, APRIL 21, 2012

U-Haul Rates Confirm The Great California Exodus
U-Haul rates for one-way 26 foot truck rentals in May:

From Sacramento to Houston: $2,370
From Houston to Sacramento: $1,007

From San Francisco to San Antonio: $2,214
From San Antonio to San Francisco: $1,069

Dynamically-determined U-Haul rates reflect the differences in relative demand for one-way truck rentals between any two U.S. cities. The 2:1 California-Texas price ratios above suggest that demand for trucks leaving California is roughly double the demand for trucks coming into the Golden State.

In other words U-Haul’s one-way truck rental rates provide empirical evidence of “The Great California Exodus” discussed in yesterday’s WSJ interview with demographer Joel Kotkin.

Here’s an excerpt:
“The Golden State’s fastest-growing entity is government and its biggest product is red tape. The first thing that comes to many American minds when you mention California isn’t Hollywood or tanned girls on a beach, but Greece.

Many progressives in California take that as a compliment since Greeks are ostensibly happier. But as Joel Kotkin, one of the nation’s premier demographers notes, Californians are increasingly pursuing happiness elsewhere.

Nearly four million more people have left the Golden State in the last two decades than have come from other states. This is a sharp reversal from the 1980s, when 100,000 more Americans were settling in California each year than were leaving.

According to Mr. Kotkin, most of those leaving are between the ages of 5 and 14 or 34 to 45. In other words, young families.

Part of California’s dysfunction, he says, stems from state and local government restrictions on development. These policies have artificially limited housing supply and put a premium on real estate in coastal regions.

------------------------


Saturday, November 10, 2012 12:12 PM

Prepare for Demise of California; Liberals Will Get All the Government (and Tax Hikes) They Want


On Tuesday voters in California went the wrong way on three propositions.



1.Voters approved Proposition 30 "temporarily" increasing the state sales tax and income tax on individuals making over $250,000.
2.They voted against Proposition 31 that would allow the governor to cut the budget in fiscal emergencies.
3.They voted against Proposition 32 would prevent unions from making campaign donations via members' dues.

Moreover, and worse yet, Democrats picked up two more votes in the state legislature giving them a supermajority, capable of passing any tax hikes they want.

Those results are so awful I suggest you prepare for the demise of California.

Indeed California's Liberal Supermajority is about to run the state into the ground and taxpayers are going to get all the government they ever wanted.

The main check on Sacramento excess has been a constitutional amendment requiring a two-thirds majority of both houses to raise taxes. Although Republicans have been in the minority for four decades, they could impose a modicum of spending restraint by blocking tax increases. If Democratic leads stick in two races where ballots are still being counted, liberals will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.

The high Democratic turnout in moderate and right-leaning districts helped the party pick up three seats in the senate and four in the assembly.

So now Californians will experience the joys of one-party, union-run progressive governance. Mr. Brown is urging lawmakers to demonstrate frugality and the "prudence of Joseph." As he said the other day, "we've got to make sure over the next few years that we pay our bills, we invest in the right programs, but we don't go on any spending binges." That's what all Governors say. Trouble is, merely paying the state's delinquent bills will require tens of billions in additional revenues if lawmakers don't undertake fiscal reforms.

With no GOP restraint, liberals can now raise taxes to pay for all this. [$200 billion in unfunded liabilities, the California State Teachers' Retirement System in need of $10 billion annually for the next 30 years to amortize its debt, $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds, etc.]

They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring. Then they'll try to make it easier for cities to raise taxes.

The greens want an oil severance tax. Other Democrats want to extend the sales tax to services, supposedly in return for a lower rate, but don't expect any "reform" to be revenue neutral. Look for huge union pay raises and higher pension benefits.

The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence. As a political experiment it all should be instructive, and at least Californians can still escape to Nevada or Idaho.

Read more at http://globaleconomicanalysis.blogspot.com/2012/11/prepare-for-demise-of-california.html#BsjRBvYpevuwE4Zh.99

--------------------

Adios California Boeing to shutter plants
November 8, 2012
By: Kimberly DvorakSubscribe

The first casualty of California’s new tax hike is defense contractor giant Boeing. The firm told its employees in California yesterday that major cut backs in military spending and shrinking bottom line profits gave the company no other choice.

As a result of restructuring, Boeing will close plants in California and consolidate operations in order to stem lower profit margins.

"We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," said Dennis Muilenburg, chief executive of Boeing Defense, Space & Security.

The nation’s second largest defense contractor said they would reduce management level positions by 30 percent and slash costs by $1.6 billion through 2015.

In a company memo Muilenburg said the move was a result if its need to "be more competitive while investing in technologies and people."

The manufacturing giant also told its employees that it would be cutting outside vendors as another method to curb spending.

While the company did not announce how many California employees would lose their jobs, Muilenburg said they were trying to relocate some workers to other plants.

The Boeing plant closures cannot be welcome news for the state of California’s bottom line. Financial experts said a stagnant economy, a $20 billion deficit and a new tax increase set to begin in January will only add to the Golden State’s unfriendly business environment.

[Sparky]

True, but why take on the tax liability? They can hedge against inflation much easier than this, why only 3/2 homes?

Since they are paying cash, they can turn these into revenue-generating rentals and be patient for prices to go up. Our monetary policy is screaming inflation at some point, and real estate (like precious metals) is a real asset to protect wealth, as long as the buy-in price isn't inflated. The area in which they are purchasing suffered some of the largest price drops in the country. And as Golden said, there may be some kind of special tax break involved, either for high volume investment real estate investors, or specifically for investment in stressed properties.

[EE_]

10's of thousands of people will be leaving the coastal areas Sandy hit.
Figure out where they are going and that could be a good bet?
Same with Californian's

250,000 cars were destroyed by Sandy. Got used cars?

[learn2swim]

Date: September 25, 2012

From April 2012 there’s this information:

Professor Mark J. Perry’s Blog for Economics and Finance
SATURDAY, APRIL 21, 2012

U-Haul Rates Confirm The Great California Exodus
U-Haul rates for one-way 26 foot truck rentals in May:

From Sacramento to Houston: $2,370
From Houston to Sacramento: $1,007

From San Francisco to San Antonio: $2,214
From San Antonio to San Francisco: $1,069

Dynamically-determined U-Haul rates reflect the differences in relative demand for one-way truck rentals between any two U.S. cities. The 2:1 California-Texas price ratios above suggest that demand for trucks leaving California is roughly double the demand for trucks coming into the Golden State.

In other words U-Haul’s one-way truck rental rates provide empirical evidence of “The Great California Exodus” discussed in yesterday’s WSJ interview with demographer Joel Kotkin.

Here’s an excerpt:
“The Golden State’s fastest-growing entity is government and its biggest product is red tape. The first thing that comes to many American minds when you mention California isn’t Hollywood or tanned girls on a beach, but Greece.

Many progressives in California take that as a compliment since Greeks are ostensibly happier. But as Joel Kotkin, one of the nation’s premier demographers notes, Californians are increasingly pursuing happiness elsewhere.

Nearly four million more people have left the Golden State in the last two decades than have come from other states. This is a sharp reversal from the 1980s, when 100,000 more Americans were settling in California each year than were leaving.

According to Mr. Kotkin, most of those leaving are between the ages of 5 and 14 or 34 to 45. In other words, young families.

Part of California’s dysfunction, he says, stems from state and local government restrictions on development. These policies have artificially limited housing supply and put a premium on real estate in coastal regions.

------------------------


Saturday, November 10, 2012 12:12 PM

Prepare for Demise of California; Liberals Will Get All the Government (and Tax Hikes) They Want


On Tuesday voters in California went the wrong way on three propositions.



1.Voters approved Proposition 30 "temporarily" increasing the state sales tax and income tax on individuals making over $250,000.
2.They voted against Proposition 31 that would allow the governor to cut the budget in fiscal emergencies.
3.They voted against Proposition 32 would prevent unions from making campaign donations via members' dues.

Moreover, and worse yet, Democrats picked up two more votes in the state legislature giving them a supermajority, capable of passing any tax hikes they want.

Those results are so awful I suggest you prepare for the demise of California.

Indeed California's Liberal Supermajority is about to run the state into the ground and taxpayers are going to get all the government they ever wanted.
The main check on Sacramento excess has been a constitutional amendment requiring a two-thirds majority of both houses to raise taxes. Although Republicans have been in the minority for four decades, they could impose a modicum of spending restraint by blocking tax increases. If Democratic leads stick in two races where ballots are still being counted, liberals will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.

The high Democratic turnout in moderate and right-leaning districts helped the party pick up three seats in the senate and four in the assembly.

So now Californians will experience the joys of one-party, union-run progressive governance. Mr. Brown is urging lawmakers to demonstrate frugality and the "prudence of Joseph." As he said the other day, "we've got to make sure over the next few years that we pay our bills, we invest in the right programs, but we don't go on any spending binges." That's what all Governors say. Trouble is, merely paying the state's delinquent bills will require tens of billions in additional revenues if lawmakers don't undertake fiscal reforms.

With no GOP restraint, liberals can now raise taxes to pay for all this. [$200 billion in unfunded liabilities, the California State Teachers' Retirement System in need of $10 billion annually for the next 30 years to amortize its debt, $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds, etc.]

They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring. Then they'll try to make it easier for cities to raise taxes.

The greens want an oil severance tax. Other Democrats want to extend the sales tax to services, supposedly in return for a lower rate, but don't expect any "reform" to be revenue neutral. Look for huge union pay raises and higher pension benefits.

The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence. As a political experiment it all should be instructive, and at least Californians can still escape to Nevada or Idaho.

Read more at http://globaleconomicanalysis.blogspot.com/2012/11/prepare-for-demise-of-california.html#BsjRBvYpevuwE4Zh.99

Good catch, Cali is gonna suffer a severe brain drain over the next 5-10 years. I guess some people in Cali will look at Florida as a decent alternative. I know many people from Britain, and other parts of Europe have been moving here too. I talked to a well traveled lady this week (she's been to over 100 countries) and she upset over the election of Obama again. I asked why not live in another country, I mentioned Switzerland. I got a good laugh from her. She said this is the best to place live when you weigh all the pros and cons. I meet another dude from Italy last week, he moved to Florida about 6 years ago. I asked him why he's in the US, and why not Italy? He said, "obviously, you haven't been to Italy have you?" Nope... Those two people I talked to are multi-millionaires, and can live anywhere they want.

[hoarder]

Possibly anticipation of some government program that will cause an increase in the demand for homes in that area.

[sunshine05]

Where can I read more about the Blackstone group? My family recently visited Seaworld and I thought it was odd when we went to the Orca show ...it had a globalist theme, very odd so I came home and looked up who owned Seaworld and it is the Blackstone group.

[Half Sense]

Is it possible they are just propping up the local RE markets with these purchases? The buys don't make much sense on their own, but what if this support keeps every home value in those counties from falling another 10%? Perhaps they bought 3/2 homes because that is the configuration most used for calculation of home prices.

[Ponce]

They are buying home in the south in order to get ready for the big freeze that is coming down the road...like I said before, those people think in the order of 50-100 years in the future and not just two or five years.

[learn2swim]

Where can I read more about the Blackstone group? My family recently visited Seaworld and I thought it was odd when we went to the Orca show ...it had a globalist theme, very odd so I came home and looked up who owned Seaworld and it is the Blackstone group.

http://en.wikipedia.org/wiki/Blackstone_Group

[learn2swim]

They are buying home in the south in order to get ready for the big freeze that is coming down the road...like I said before, those people think in the order of 50-100 years in the future and not just two or five years.

But, if we're gonna suffer an economic collapse, why not wait to buy those homes for pennies on the dollar since they got 50-100 years? The money they are spending now could be invested into commodities without a tax liability. Never mind, the exposure to Hurricanes that can wipe out your real estate portfolio real quick in this area.

[learn2swim]

Is it possible they are just propping up the local RE markets with these purchases? The buys don't make much sense on their own, but what if this support keeps every home value in those counties from falling another 10%? Perhaps they bought 3/2 homes because that is the configuration most used for calculation of home prices.

Yeah, but 10% isn't really a big deal. If they were getting bank or government loans, then I would agree, but they are paying with their own cash. Not only that, they're willing to pay above market valve. Didn't Porter Stansberry say that we're heading for an economic boom, oil, and natural gas?

[learn2swim]

Possibly anticipation of some government program that will cause an increase in the demand for homes in that area.

Yeah, a Fannie Mae/ Freddie Mac government program on steroids...Maybe they plan on moving the section 8 minorities into the white communities, fuck me...

[Ponce]

But, if we're gonna suffer an economic collapse, why not wait to buy those homes for pennies on the dollar since they got 50-100 years? The money they are spending now could be invested into commodities without a tax liability. Never mind, the exposure to Hurricanes that can wipe out your real estate portfolio real quick in this area.

The rich will always be rich so that all those rich people from the north will want to move to the south, no matter the price.

[Golden]

Yeah, a Fannie Mae/ Freddie Mac government program on steroids...Maybe they plan on moving the section 8 minorities into the white communities, fuck me...

Maybe? What do you project 10, 20, 30yrs out?

[Half Sense]

Yeah, but 10% isn't really a big deal. If they were getting bank or government loans, then I would agree, but they are paying with their own cash. Not only that, they're willing to pay above market valve. Didn't Porter Stansberry say that we're heading for an economic boom, oil, and natural gas?

I'm thinking of in terms of the number of additional underwater loans and foreclosures even a 10% drop in home prices would trigger. The banks have kept a lot of properties off the market to keep prices from tanking, but at some point, actual homes need to be bought for high prices so a housing rebound can be reported in these markets. So, in steps Blackstone with newly printed money from the Fed. Next year, maybe the average price of an existing 3/2 in Sarasota is reported as rebounding from $220k to $300k, and the people who owe $200k on their 3/2 will suddenly feel "rich" enough to take out a home equity loan. Instead of the RE market tanking, there's a magical new housing boom, and all because this one company overpayed for some houses with free money.

[FreeEnergy]

Blackstone is buying of 3/2 homes in my area like it's going out of style.

http://www.heraldtribune.com/article/20121108/ARTICLE/121109615/0/FRONTPAGE


Blackstone Group on property buying spree

Giant real estate investment firm Blackstone Group has launched an ambitious campaign to buy distressed properties in Southwest Florida, so far doing it all with cash.
Facts


Last month, the New York firm paid $4.4 million for 37 homes in Sarasota and Manatee counties, property records show, part of an $80 million buying spree in 11 Florida counties.

"If it fits their model, they are not afraid to pay more than the asking price to get it," Corbridge said.


Back in Sept..... Group to buy up to 15,000 houses in Tampa Bay area

Blackstone Group says they are buying them up to rent them out, but some of the houses are to expensive to be renting them out. They bought a home about 5 miles from me for $350,000. That's way too much for renting. Something is up, maybe an economic boom is ahead in a couple of years?

Good catch. From the same article:



Blackstone intends to convert the single-family homes it acquires into income-producing rentals, then reportedly package them into real estate investment trusts to sell to investors.


I tell you what it probably is. Insider information, of course.

Freedie Mac and Fannie Mae are stuck with millions of homes they can't get rid of and can't foreclose on. The gov wants these out, so freddie/fannie is creating hundreds of small "real estate investor" companies with pools of these mortgages. Then they are selling it though secondary markets to small investors for smaller amounts. The fraud there is huge because according to my source chain of title gets broken, and also small investors end up with crap etc. Typically these sell for 20 cents on the $1 but these aren't investments, they are again, crap. The deal is here between banksters and the gov and they will keep it under radar and will squash any legal plays.

My source is not from freddie/fannie.

The fact that Blackstone is buying only certain types of properties tells me that there's another possibility: someone holds a portfolio of paper with these properties that is absolute shit and that they are trying to rebuild so that it looks good to sell. Because it is blackstone, it is probably gov. printed money so they can buy at any price.

[Neuro]

I smell a rent subsidy coming for low income families. Black stone rents them out for $1500 a month. Obama will pay somewhere between $500-1000/month in subsidy depending on income x 10 million houses it will cost around $100 Billion/year, and it will create a profitable business buying and renting out foreclosed properties, take out the inventory of real estate, and create a steady increase in price of houses. Obama housing is here! Government will not need to bail out banks as much. House owners can start taking out third mortgages, to pay for their children's university, home improvement. Low income people will demand a third term for Obama. IT IS GOOD FOR EVERYONE! ;D

[PlatinumBlonde]

I smell a rent subsidy coming for low income families. Black stone rents them out for $1500 a month. Obama will pay somewhere between $500-1000/month in subsidy depending on income x 10 million houses it will cost around $100 Billion/year, and it will create a profitable business buying and renting out foreclosed properties, take out the inventory of real estate, and create a steady increase in price of houses. Obama housing is here! Government will not need to bail out banks as much. House owners can start taking out third mortgages, to pay for their children's university, home improvement. Low income people will demand a third term for Obama. IT IS GOOD FOR EVERYONE! ;D

It's either this scenario OR Blackstone over insured them...

[Neuro]

I smell a rent subsidy coming for low income families. Black stone rents them out for $1500 a month. Obama will pay somewhere between $500-1000/month in subsidy depending on income x 10 million houses it will cost around $100 Billion/year, and it will create a profitable business buying and renting out foreclosed properties, take out the inventory of real estate, and create a steady increase in price of houses. Obama housing is here! Government will not need to bail out banks as much. House owners can start taking out third mortgages, to pay for their children's university, home improvement. Low income people will demand a third term for Obama. IT IS GOOD FOR EVERYONE! ;D
Apparently it is old news, Obama housing started in February 2012...
http://www.bloomberg.com/news/2012-02-01/obama-said-to-plan-assistance-for-home-mortgage-refinancing.html

The proposal includes a pilot program to sell foreclosed properties in bulk to investors who maintain the homes as rentals, according to the White House.

[osoab]

Looks JPM is in on the game.







http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Guest Post: It’s About Time - JP Morgan To Enter The Housing Slumlord Trade (http://www.zerohedge.com/news/2013-02-04/guest-post-it%E2%80%99s-about-time-jp-morgan-enter-housing-slumlord-trade)Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 02/04/2013 - 18:02

[Cebu_4_2]

You guys kid me, they buy them on the short, drop a couple grand and sell at at lest 4x the price with made up titles. This is to comfore the middle class that gets booted and needs somewhere to go. They will buy cities like detroit and build walls and sell them for 100K properties.. watch... Yeah I have no clue right?

[Neuro]

Bama housing welfare for JPM! Business idea bankrupt the people, give the banks free money to buy up the real estate, subsidize rents with newly printed cash to get a good return on investment, create a new real estate bubble, employing people renovating and maintaining the properties, so that they get back on their feet and can buy a house again, crash the market again. Not so free market crapitalism is good for the aristocracy. If you can do it, buy up a few houses, renovate them, rent them out, and sell them a couple of years later...

[JDRock]

rental housing for blackwater -like private soldiers??

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Landlord Blackstone Rushes To Capitalize On Housing Bubble By Launching First Ever REO-To-Rent Securitization (http://www.zerohedge.com/news/2013-03-14/landlord-blackstone-rushes-capitalize-housing-bubble-launching-first-ever-reo-rent-s)Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 03/14/2013 - 13:03