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A Closer Look At The Decrepit World Of Wall Street Rental Homes

Tyler Durden's picture




 

Submitted by Michael Krieger of Liberty Bitzkrieg blog,

This new incursion by hedge funds and private equity groups into the American single-family home rental market is unprecedented, and is proving disastrous for many of the tens of thousands of families who are moving into these newly converted rental homes. In recent weeks, HuffPost spoke with more than a dozen current tenants, along with former employees who recently left the real estate companies. Though it’s not uncommon for tenants to complain about their landlords, many who had rented before described their current experience as the worst they’ve ever had.

 

A former inspector for American Homes 4 Rent who worked in the Dallas office said he routinely examined homes just prior to rental that were not habitable. Though it wasn’t his job to answer complaints, he said he fielded “hundreds of calls” from irate tenants.

 

- From the Huffington Post’s excellent article: Here’s What Happens When Wall Street Builds A Rental Empire

This is a topic that I have been writing extensively on since the beginning of the year. In fact, I don’t think there’s another topic I have focused so intently on in the whole of 2013, with the exception of the NSA revelations. It all started back in January with my post titled, America Meet Your New Slumlord: Wall Street, which received a huge amount of attention in the alternative media world.

I knew from the start that this whole “buy-to-rent” thing would be a disaster. Over the last decade or so, everything that Wall Street touched has turned into a scheme primarily focused on parasitically funneling wealth and resources away from society at large to itself. This is no different. They call it a “new asset class.” I call it Wall Street serfdom.

What makes this article even more interesting is that it’s not simply greed, it is also obvious that these Wall Street firms have no idea what the fuck they are doing. For example:

Former employees of the companies, who spoke on condition of anonymity because they worry about jeopardizing their careers, said their former colleagues can’t keep up with the volume of complaints. The rush to buy up as many homes as possible has stretched resources to the point of breaking, these people said.

My advice to people out there in the rental market, is they should try to avoid Wall Street rentals. The three main companies highlighted in this article are: Invitation Homes (owned by Blackstone), Colony American and American Homes 4 Rent. Unfortunately, it appears these companies may try to hide their presence in certain markets so you may have to do additional digging. For example, WRI Property Management is the local agent of Colony American in Georgia.

More from the Huffington Post:

There’s no escaping the stench of raw sewage in Mindy Culpepper’s Atlanta-area rental home. The odor greets her before she turns into her driveway each evening as she returns from work. It’s there when she prepares dinner, and only diminishes when she and her husband hunker down in their bedroom, where they now eat their meals.

 

For the $1,225 a month she pays for the three-bedroom house in the quiet suburb of Lilburn, Culpepper thinks it isn’t too much to expect that her landlord, Colony American Homes, make the necessary plumbing repairs to eliminate the smell. But her complaints have gone unanswered, she said. Short of buying a plane ticket to visit the company’s office in Scottsdale, Ariz., she is out of ideas.

 

“You can not get in touch with them, you can’t get them on the phone, you can’t get them to respond to an email,” said Culpepper, whose family has lived with the problem since the day they moved in five months ago. “My certified letters, they don’t get answered.”

 

Most rental houses in the U.S. are owned by individuals, or small, local businesses. Culpepper’s landlord is part of a new breed: a Wall Street-backed investment company with billions of dollars at its disposal. Over the past two years, Colony American and its two biggest competitors, Invitation Homes and American Homes 4 Rent, have spent more than $12 billion buying and renovating at least 75,000 homes in order to rent them out.

 

Most who spoke with HuffPost said they moved into their rental homes only to find that renovations they were assured were comprehensive amounted to little more than a fresh coat of paint and new carpeting. Tenants said they immediately discovered major mechanical and plumbing problems: broken water heaters and air conditioners, broken toilets and in some cases even vermin infestations, including fleas, silverfish and rodents.

 

Several weeks after Rosemary moved into the Raleigh, N.C., house she’s renting from American Homes 4 Rent, her hot water tank exploded. Rosemary, who declined to use her last name for fear of losing her security deposit, said she couldn’t shower for days. It took constant calls and emails to the rental company before they sent someone to replace the tank.

 

Former employees of the companies, who spoke on condition of anonymity because they worry about jeopardizing their careers, said their former colleagues can’t keep up with the volume of complaints. The rush to buy up as many homes as possible has stretched resources to the point of breaking, these people said.

 

A former inspector for American Homes 4 Rent who worked in the Dallas office said he routinely examined homes just prior to rental that were not habitable. Though it wasn’t his job to answer complaints, he said he fielded “hundreds of calls” from irate tenants.

“It’s just a slumlord,” Culpepper said of Colony American. “A huge, billion-dollar slumlord.”

Indeed, and it shouldn’t be a surprise to anyone.

Full article here.

 

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Sat, 10/26/2013 - 20:49 | 4094164 TeamDepends
TeamDepends's picture

There is a house (for rent) on Wall Street

They call the rising sun

It's been the ruin of many a young man

And God I know I'm one

Sat, 10/26/2013 - 21:08 | 4094188 NOZZLE
NOZZLE's picture

As is routinely pointed out on these pages, absent Jamie's access to .00123 o/o Cash that he lends at 25.1675 apr. JP Moran's whales would have crushed that bank years ago.

Sat, 10/26/2013 - 21:10 | 4094191 Thomas
Thomas's picture

Wall Streets next investor scam is already loaded in the chamber and ready to be fired.

Sat, 10/26/2013 - 22:31 | 4094319 Peter Pan
Peter Pan's picture

We have gone from a capitalist system of value added to a system of syphoning off value. Predatory behaviour is not self sustaining particularly when the economy is struggling.

Sat, 10/26/2013 - 22:59 | 4094369 Diogenes
Diogenes's picture

Why do you think the economy is struggling? The big interests no longer consider the US a going concern to be milked for profits. They regard it as a worn out shell to be junked and stripped of assets. The first stage was sending manufacturing jobs overseas in the seventies. Then followed bubble after bubble. They have just about finished syphoning off the old peoples' savings and pension money. They have sold the young generation into debt slavery for the college degrees they need to get the good jobs that no longer exist. Now they are coming back and scavenging the scraps from the real estate bubble.

They may have over reached themselve with Obamacare, putting everyone in a hammerlock to extract every dime of disposable income for "insurance" that pays for nothing and that you can never collect on. But don't worry, next year they will do worse.

Sun, 10/27/2013 - 00:09 | 4094451 Bananamerican
Bananamerican's picture

yup.

locusts of Mammon

Sun, 10/27/2013 - 07:04 | 4094734 negative rates
negative rates's picture

I knew you would eventually get to texas, and their shotty designs and workmanship, exported all over the country now.

Sun, 10/27/2013 - 13:21 | 4095320 jbvtme
jbvtme's picture

this is what happens when the bottom of the gene pool rises to the top of the food chain

Sun, 10/27/2013 - 19:32 | 4096154 The Alarmist
The Alarmist's picture

Sorry, but for a moment you had me focused on the fact that it is the light-weight turds that float to the top of the bowl. And that had led me down the rabbit hole of who ends up in the Senate and the House and how they get there.

Sun, 10/27/2013 - 10:44 | 4095016 MarcusLCrassus
MarcusLCrassus's picture

Like termites, the banks have hollowed out the economy of the United States of America, leaving a dying, dried up husk, a mere shell of its former self. 

 

 

Sun, 10/27/2013 - 19:36 | 4096164 The Alarmist
The Alarmist's picture

Sorry, but having just torn into the walls of my US house, I realise that they are hollow and am not surprised when similar structures are blown down in hurricanes and tornados.  Speaks volumes for a society.  Hate to say it, but my home in socialist Europe has solid concrete walls.  BTW, a country with socialist medicine, e.g. Obamacare, is a socialist country ... welcome to the club.

Sat, 10/26/2013 - 21:19 | 4094189 NOZZLE
NOZZLE's picture

Dupe

Sat, 10/26/2013 - 22:21 | 4094296 max2205
max2205's picture

Obamaville's

Sat, 10/26/2013 - 21:23 | 4094196 Careless Whisper
Careless Whisper's picture

The hedge funds will securitize the rental income of their house portfolios and sell the future income stream as an asset backed security. The hedge funds will get their money back that way. Then, knowing that the rental stream will dry up when the tenants repairs aren't done, and the properties are completely mismanaged, they will short the securities they just sold. They may even short the case-shiller index knowing that the real estate market will be re-flooded with all those houses, for part deux of the housing crash.

Sat, 10/26/2013 - 21:41 | 4094239 El Vaquero
El Vaquero's picture

There was an article on here a few months ago alerting us to the fact that one of the wall street companies was securitizing the rental stream.  Given the whole squid MBS-CDS ordeal, I suspect you are spot on.  Everybody saw how it was done, and more importantly, everybody saw nobody go to jail. 

Sun, 10/27/2013 - 11:56 | 4094268 socalbeach
socalbeach's picture

This may be the article you were thinking of.

 

Step Aside RMBS, Rent-Backed Securities Are Here, And With Them The Beginning Of The End

Also, don't forget the possibility of selling synthetic rent-backed securities if the demand for real RBS outstrips supply.  Wall St could probably engineer a hundred billion dollar scam with just a few thousand actual rentals.  If you need a primer, see this.

"Synthetics thrived for a brief time because they were cheaper and easier to create than traditional CDOs, whose raw material, mortgages, was beginning to dry up... the counterparties providing the payment stream were primarily hedge funds or investment banks hedging, or often betting that certain debt the synthetic CDO referenced ... would default."

Sun, 10/27/2013 - 06:34 | 4094708 williambanzai7
williambanzai7's picture

BLACKSTONE TRAILER PARK

Sat, 10/26/2013 - 20:51 | 4094166 Seasmoke
Seasmoke's picture

Last one out, wreck the house. 

Sat, 10/26/2013 - 22:57 | 4094358 Real Estate Geek
Real Estate Geek's picture

It's "Last one out, turn on the gas." Insurance policies typically exclude casualty from earthquake.  But a fire after the earthquake would be covered.

Sun, 10/27/2013 - 08:54 | 4094841 shovelhead
shovelhead's picture

My thoughts exactly.

When whole neighborhoods of these rentals start burning down, people might start to notice.

Sat, 10/26/2013 - 20:54 | 4094170 ebworthen
ebworthen's picture

What?  Wall Street Witches and Warlocks fucking over the common person?

Hell, they get us coming and going.  Suck cash out of IRA's, 401K's, the government, fees and bullshit and deposit/withdrawal jiggering to increase fees, LIBOR rigging, MERS home stealing, etc., etc., etc. - all with the blessing of the Supine Court, bailouts from the CONgress, and zero jail time courtesy the spineless DOJ, other law enforcement, and may I say the military.

Jesus H. Christ we are lambs to the slaughter seemingly bleating aimlessly just letting the wolves cull us.

DISGUSTING.  We need a hanging, guillotine, blood in the streets revolution so bad it hurts.

Sat, 10/26/2013 - 21:50 | 4094251 Miffed Microbio...
Miffed Microbiologist's picture

Bedford Falls America is now morphing into Pottersville. Political and financial empire-building are subsumed into greed, ill will,blind destructiveness and a never ending lust for power. Prepare accordingly or be forever at the mercy of those blood sucking parasites.

Miffed;-)

Sun, 10/27/2013 - 02:17 | 4094577 geekgrrl
geekgrrl's picture

This seems like the perfect metaphor for what's going on.

Sun, 10/27/2013 - 02:19 | 4094578 g'kar
g'kar's picture

Clarence may be our only hope

 

Seriously

Sun, 10/27/2013 - 08:54 | 4094842 GMadScientist
GMadScientist's picture

At least they're playing the part of the arrogant ignorant feudal lord to a fault, insuring the riots will be plenty and violent.

Sun, 10/27/2013 - 11:19 | 4095069 ElvisDog
ElvisDog's picture

But, I don't understand why the woman who lives in the rental house smells like shit stays in that house. Something is missing from that story. Wall Street doesn't own all the rental housing or apartments in Georgia. Why doesn't she find a new house? Seems like losing your deposit would be worth not living in a house that smells like shit. I suspect the missing piece in that story is that the Wall Street rental is cheaper than comparable rentals and Ms Culpepper has chosen to stay in the house.

Mon, 10/28/2013 - 14:56 | 4098513 daveO
daveO's picture

Contract? That's how they (landlords) back their securities, my guess.

Sat, 10/26/2013 - 23:49 | 4094436 Wahooo
Wahooo's picture

$12 billion in real estate is a lot of property to be torched, but it can be done.

Sun, 10/27/2013 - 08:55 | 4094843 GMadScientist
GMadScientist's picture

You don't need to burn all $12B, they'd get the message after the first 3 or 4 complexes went up, but they're also heavily insured and would love to take the money instead.

Sun, 10/27/2013 - 10:52 | 4095025 RSloane
RSloane's picture

You just hit the ball, again, out of the park. Thanks, Ebworthen.

Sun, 10/27/2013 - 10:53 | 4095027 RSloane
RSloane's picture

Double post.

Sat, 10/26/2013 - 20:57 | 4094173 Bangin7GramRocks
Bangin7GramRocks's picture

Fuck you renter! if you would've worked harder, you'd be an owner.     Ayn Rand

Sat, 10/26/2013 - 21:04 | 4094182 LetThemEatRand
LetThemEatRand's picture

Another good Rand quote:  "sucks to be you."

Sat, 10/26/2013 - 22:33 | 4094309 Pike Bishop
Pike Bishop's picture

Fucking Ayn Rand.

It's always amazing to me how people half-assed quote Adam Smith's Wealth of Nations. They worship it but never read it. Otherwise they would know the Invisible Hand was mentioned once, and in the context of the surrounding paragraphs, it was about not letting the fruits of your labors get too far way from you. A great argument against globalization and off-shore labor arbitrage. Add in that he stated that it was also the Gov't's responsibilities to help provide eduation and fight poverty. Ask him. He was a Moralistic/Philopspher first, then an Economist.

Then there is this plague of Randroids. It must be the same people who wanted Iraq, because they completely forgot about Viet Nam.

There was no one in her immediate personal life who Rand didn't fuck up. Just because they were Svengalied and didn't have the bitch shot is incidental.

Rand and her starboy Nathanial Branden were fucking. They were doing it with the full knowledge of their spouses. Explained away as a requitment of their self-intertest. Rand's husband Frank O'Connor reacted normally and became a deadly drunk. Branden's wife had been sucking in too much retardant, and in some fucked-up way thought this was great. So great, that she was keeping from Rand the fact that Branden had started to sport fuck a sweety on the outer edges of The Collective.

In 1968 Rand found out and went nuclear. Under a thin veil, she disavowed anything Branden was teaching and anything Barbara was writing. It was like a teen-ager who got a dose of her own medicine. The Brandens went into arrested development and have spent the rest of their lives trying to validate the fucked-up thinking which went into that episode.

John Galt is Ayn Rand. Ayn Rand is John Galt.

A fictional character who has nothing to do with real people and the real world of human beings.

Ayn Rand was wrong. John Nash was right.

Sat, 10/26/2013 - 23:53 | 4094439 Wahooo
Wahooo's picture

Yep, fuck the mythologies. All of them.

Sun, 10/27/2013 - 00:25 | 4094473 yatikto
yatikto's picture

Philosophy should not be separated from the person that originated it.

Sun, 10/27/2013 - 03:51 | 4094628 MisterMousePotato
MisterMousePotato's picture

On the other hand, out of the mouths of babes ... (probably not referring to Ayn Rand).

Sun, 10/27/2013 - 12:45 | 4094937 Stanley Lord
Stanley Lord's picture

 

She wrote the whole book on a bet, not unlike L Ron Hubbard.

Sun, 10/27/2013 - 10:42 | 4095014 Freewheelin Franklin
Freewheelin Franklin's picture

That's about the dumbest thing I've read in the comments section here. Objectivism has its faults. Unfortunately, you touched on none of them, and instead, insisted on focusing one the personal behaviors which have nothing at all to do with Objectiviem.You sound like a clueless leftwing liberal that doesn't understand the non-aggression principle or the right of property and self-ownership. I suggest you go back to the DailyKos.

 

The quality of comments where at ZH have really gone in the crapper. Thank god the quality of the articles hasn't.

Sun, 10/27/2013 - 11:36 | 4095102 LetThemEatRand
LetThemEatRand's picture

It hurts when someone tells you that your religion is a big lie.  Might cause a guy to say something childish like "go back to the DailyKos!"

Sun, 10/27/2013 - 19:51 | 4096192 Ivan K
Ivan K's picture

Ad hominem much?

Sat, 10/26/2013 - 21:12 | 4094198 booboo
booboo's picture

"Obama gonna make my house payment."    Peggy Joseph 

http://www.youtube.com/watch?v=P36x8rTb3jI

Sat, 10/26/2013 - 21:50 | 4094249 LetThemEatRand
LetThemEatRand's picture

The ter'ists took down the towers 'cause they hate our freedums.  -W

We can find stupid people to quote all night.

Sun, 10/27/2013 - 08:59 | 4094852 GMadScientist
GMadScientist's picture

"Why we haven't made a mortgage payment in months." - White bitch from the suburbs who drove her golfcart straight to the 19th hole

Sat, 10/26/2013 - 21:03 | 4094179 LetThemEatRand
LetThemEatRand's picture

Another example of giant corporations fucking it up for small businesses and individual investors and their (former) customers.    

Sat, 10/26/2013 - 21:15 | 4094200 therevolutionwas
therevolutionwas's picture

And how do 'giant corporations'  get to fuck it up....?   Everone now,.....G O V E RN M E N T!!!  Yes!  Without government power corporations couldn't do diddlie-squat.

Sat, 10/26/2013 - 21:20 | 4094209 LetThemEatRand
LetThemEatRand's picture

The corporations control the government because they have grown powerful enough to be able to buy and sell it and convince the population to elect their shills.  Without the government, they would merely cut out the middle man.   The mob exists outside the government and without government keeping it in check, it would probably take over the world.  Mobsters don't play nice and they don't follow the rules, free market or otherwise.

Sat, 10/26/2013 - 21:29 | 4094221 booboo
booboo's picture

"without government keeping it in check, it would probably take over the world."

ha..haha... hahaha........

BWAAAAAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!

 

Sat, 10/26/2013 - 21:53 | 4094252 Fiat Burner
Fiat Burner's picture

Corporations only control the government because we the people have failed to hold the government accountable for suspending the rule of law. 

Government power is the problem.  If government followed the rule of law and was fearful of the consequences for not following it, then there would be nothing for corporations to lobby.

Sun, 10/27/2013 - 01:26 | 4094543 bunnyswanson
bunnyswanson's picture

http://storyofstuff.org/movies/story-of-citizens-united-v-fec/

http://www.youtube.com/watch?v=k5kHACjrdEY#t=33

Maximize profit for shareholders at any and all cost is the result of  Citizens Unites V FEC decision.

Sun, 10/27/2013 - 09:08 | 4094863 GMadScientist
GMadScientist's picture

In a sense, government exists to give multinational corporates coverfire and plausible deniability; the illusion of choice is an important element of the subjugation of the sheople.

Sat, 10/26/2013 - 21:23 | 4094215 booboo
booboo's picture

Correction, another example of a government colluding with giant corporations in order to benifit both the government and the giant corporation. They lobbied congress for this outcome and without government permission and they would not be doing this. Prior to 2012 there was a limit on how many FHA backed homes a giant corporation could buy with all of that 0% interest money funneled into their coffers.

If the government would have not bailed out the banks real estate prices would be around three times average income now and even less in 2008 and affordable housing would not be some empty promise from government officials but a private sector reality.

Sat, 10/26/2013 - 21:45 | 4094241 LetThemEatRand
LetThemEatRand's picture

Yes, corporations only do bad things when the government lets them.  If there were no government to corrupt that would then allow the corporations to do their evil deeds, the corporations would buy the world a Coke and they would shit unicorns and we'd all be on easy street eating unicorn shit (tastes like Rand, but more filling).

Sat, 10/26/2013 - 22:09 | 4094278 booboo
booboo's picture

Not sure if you get it or not so I will spell it out. Big Giant Scarey Corporations would not exist in a world free of abusive government that passes complicated laws that big giant scarey corporations actually write for the government for the sole purpose of crowding out the smaller competition. I am no fan of big giant scarey corporations, however you should understand that conglamerates would not exist in a marketplace that was free of opressive government that enforces by the end of the gun barrel the laws that protect the corporations. Without government, corporations would be big giant lumbering dinosaurs being picked off by faster, leaner, meaner, smaller operations, instead they are just big giant lumbering dinosaurs with fleets of armed government Humvees riding along side blasting anything that gets near them. When was the last time you heard of a three letter government agency raiding Coke, Pepsi, JP Morgan or Archer Daniels Midland? On the other hand little organic farming operations are being raided by armed government thugs daily. Are you by chance a government regulator?

Sat, 10/26/2013 - 23:39 | 4094419 LetThemEatRand
LetThemEatRand's picture

No, you don't get it.  The corporations are the government.  Take away one and you are left with the other.   The Founders of this country understood this and developed a system of checks and balances.  It failed, but it could be reformed.

Show me a time in humanity -- ever -- where your free market existed.  It sounds great in theory but it is unworkable as shown by all of human history.  Reality is that guys with wealth and power fuck over the little guy, whether they have a government to corrupt or they do it themselves with their own armies.  What you espouse are the theoretical wishings of a small mind fixated on ideas instead of reality.

Sat, 10/26/2013 - 23:48 | 4094433 Harry Dong
Harry Dong's picture

By flying under the radar some small businesses have succeeded. Only to end up being part of the matrix...cough, Starbucks, cough.

Sun, 10/27/2013 - 00:27 | 4094445 LetThemEatRand
LetThemEatRand's picture

And every internet startup that is now a household name.  Do no evil, right?  What all of these Rand cultists fail to understand is that greed and corruption go hand in hand.   You don't need elected government to rule by force.  Humans have been ruled by force before the concept of elected government was a twinkle in the eye of the Greeks.   The only power the people have is numbers, and that has been enough a few times in history to take over the reigns of control.   During those brief periods where ordinary people were able to keep the wolves at bay, great things were done.   But only because they kept the wolves at bay with greater force than the wolves could bring to bear.    It baffles me that people who have the entire history of the world at their fingertips want to give the reigns back to the sociopaths based on some sophomoric idea of free markets.

Sun, 10/27/2013 - 09:17 | 4094879 GMadScientist
GMadScientist's picture

It's slow and steady progress, difficult to see over the span of a single human lifetime, but yes, the constant pining for a yesteryear that never was gets tiresome.

Sun, 10/27/2013 - 15:26 | 4095612 RaceToTheBottom
RaceToTheBottom's picture

When greed is good, the only things that stops you is regulation.  So their goal becomes remove the regulation.  

Marketplace driven regulation only works when everyone is the same and there exists perfect communication of those greed based criminal decisions (which never occurs in a greed based society)

Mon, 10/28/2013 - 15:04 | 4098519 shiftless
shiftless's picture

If my ideas of free markets is sophomoric, yours are downright juvenile. You are an arrogant prick, the sort who is so wrong you even picked a nickname which reflects the level of your wrongness. I hope you starve to death in the streets, maggot. Go back to hell where you belong.

Sun, 10/27/2013 - 09:15 | 4094877 GMadScientist
GMadScientist's picture

Yep, everyone was racing along to pick off those "lumbering dinosaurs" like Jay Gould, JP Morgan, Carnegie, and Vanderbilt; how incredibly ignorant of even recent history does one have to be to believe the stupid shit that you do?

I sincerely hope you enjoy the cot the company let you rent with scrip for the night because you're employee of the month.

 

Sun, 10/27/2013 - 10:59 | 4095037 RSloane
RSloane's picture

It maybe my browser and how its laying out this thread, but it looks as if you are arguing with yourself GMad.

Sun, 10/27/2013 - 10:49 | 4095020 Freewheelin Franklin
Freewheelin Franklin's picture

Unfortunately, the rental business is no place for a small investor. It hasn't been for a while, now. The laws heavily favor the tenant. In some states it can take up to 6 months to evict someone for non-payment. No small investor with loan payments and property tax payments can afford that unless he/she has at least 20 rental properties. Everyone I know sold their rentals years ago.It just doesn't pay.

 

Sat, 10/26/2013 - 21:07 | 4094185 ILikeBoats
ILikeBoats's picture

A rather painful introduction to tenants law and small claims court, awaits the Wall Street scum.

Sat, 10/26/2013 - 22:00 | 4094263 El Vaquero
El Vaquero's picture

I bet they'll find ways to make that difficult too.  For instance, they may not have a physical office in many of the states that they own the property, and many states' small claims rules require that the defendant be served within the state.  Now, the person either needs to bump it up a level, where the rules get more complex, or, they need to know about registerd agents and be able to find the registered agent for the company.  They could also run a lot of the stuff out of a state that makes it very dificult to subpoena witnesses if you are not in that state.  MO is one such state.  If you need to subpoena a witness in MO for a non-MO state action, you need to file a miscellanious action with the MO court system and ask it to issue the subpoena.  (At least, I think that's the procedure, I've never had to actually do it.  There happens to be a large bank that has a shitload of affidavits that come out of MO that it uses when suing people all over the country.) 

 

Anybody reading this who is a tenant of a wall street slum lord who needs to sue in small claims, look up their registered agent in your state if you cannot figure out who to serve. 

Sun, 10/27/2013 - 00:29 | 4094463 LetThemEatRand
LetThemEatRand's picture

I'll bet a dollar that the leases written by Wall Street types have an arbitration clause, forcing the tenants to arbitrate any dispute in an industry run forum in New York or Delaware.  The cost of filing a suit in arbitration is usually several thousand dollars, not counting the lawyer that you need to pay by the hour, in the distant state.   There is no jury, and your case is decided by and large by people chosen by the company you are suing.  SCOTUS -- Scalia writing the opinion -- recently upheld the Constitutionality of such agreements as being part of the right to contract.   Doesn't matter if the tenant didn't read or understand the clause, buried in a 20 page lease.   SCOTUS even said, if Congress doesn't like it, it can write a law against it.  Which they don't, because the vast majority of their voters don't even know this exists.  But this is just pure contract law, folks.  You contract to have no rights, you have no rights.  The free market at work.  Rule of law, bitches.  Thank God elected government isn't coming in to save consumers from the predator corporations.

Sun, 10/27/2013 - 00:47 | 4094498 El Vaquero
El Vaquero's picture

The largest arbitration forums have different fee schedules for consumers.

 

In cases before a single arbitrator, a nonrefundable filing fee capped in the
amount of $200 is payable in full by the consumer when a claim is filed, unless the
parties’ agreement provides that the consumer pay less. A partially refundable
fee in the amount of $1,500 is payable in full by the business, unless the parties’
agreement provides that the business pay more. This fee is due from the
business once the consumer has met the filing requirements.

.

.

.

(iv) Hearing Fees
For telephonic hearings or in-person hearings held, an additional administrative
fee of $500 is payable by the business.

 

http://www.adr.org/cs/idcplg?IdcService=GET_FILE&dDocName=ADRSTAGE200999...

 

And AAA (the forum that has that schedule) will hear real estate disputes.  JAMS probably will too, and they have a different fee schedule for consumers as well.  You also do not need to hire a lawyer to initiate arbitration.  Seriously, I've been through the court system with banks, and while I won my case outright, I watched several others elect arbitration, pay the $200 dollar fee on a $4000 CC debt, and the banks were doing everything they could to squirm out of their own contract because arbitration did not cost the consumer very much, but it costs the banks a fuckton of money.  The banks would just dismiss the suit in the end unless it was a very high balance.

 

OTOH, should they have an arbitration clause in their rental agreement, and should a renter sue anyway, they still have to hire an attorney, because I am not aware of a single state that lets companies go at it pro se.  If they want to enforce the arbitration clause, they still have to get that attorney to draft a motion to stay the action and compel private contractual arbitration.  That costs them money. 

 

That being said, if the arbitration forum is NAF, yeah, the renter is probably fucked. 

Sun, 10/27/2013 - 00:50 | 4094505 LetThemEatRand
LetThemEatRand's picture

"unless the parties’ agreement provides that the business pay more."

Your words.


Sun, 10/27/2013 - 00:52 | 4094508 El Vaquero
El Vaquero's picture

Not my words.  AAA's fee schedule's words.  And they're saying that the business can pay more.  The consumer's fees are capped at $200. 

Sun, 10/27/2013 - 01:03 | 4094510 LetThemEatRand
LetThemEatRand's picture

You obviously had an experience as a consumer a few years (how long ago?) before the SCOTUS ruling.   And which case am I referring to?

Most of these companies now have in house counsel who will represent them on salary.  They don't need to hire anyone.

JAMS requires $1000 just to get started.  http://www.jamsadr.com/files/Uploads/Documents/JAMS-Rules/JAMS-International-Arbitration-Fees.pdf

And you pay for hearings as well.  Arbitrators charge several hundred dollars an hour.

Fromhttp://www.nolo.com/legal-encyclopedia/arbitration-pros-cons-29807.html 

"Questionable objectivity.  Another concern is that the process of choosing an arbitrator is not an objective one, particularly when the decision-maker is picked by an agency from a pool list, where those who become favorites may get assigned cases more often.

Adding possible complication: Many of the national arbitration groups actively market their services to companies that issue credit cards or sell goods to consumers, casting additional questions on the alleged neutral's objectivity. And an arbitrator chosen by a party within an industry may be less objective, more likely to be biased in favor of the appointing group.

Lack of transparency. As mentioned, the fact that arbitration hearings are generally held in private rather than in an open courtroom, and decisions are usually not publicly accessible, is considered a benefit by some people in some situations. Others, however, lament that this lack of transparency makes the process more likely to be tainted or biased, which is especially troublesome because arbitration decisions are so infrequently reviewed by the courts.

Rising costs. While most still claim that arbitration is less costly than litigation, its costs are increasing. According to a recent survey by Public Citizen, a consumer watchdog group, the cost of initiating an arbitration is significantly higher than the cost of filing a lawsuit: $6,650 to $11,625 to initiate a claim to arbitrate a consumer claim worth $80,000 versus $221 to file that action in a particular county court. Add to that the arbitrator's fees -- multiplied by three if a panel is involved -- in addition to administrative costs, and the process appears to be less of a bargain."

Sun, 10/27/2013 - 01:04 | 4094523 El Vaquero
El Vaquero's picture

Less than 2 years.  And that fee schedule that I quoted was the current AAA fee schedule.  While not all banks have removed their arbitration clauses from their card holder agreements, I do know that Capital One has because it was getting used against them in the way that I described.  The SCOTUS ruling cuts both ways. 

Sun, 10/27/2013 - 01:12 | 4094524 LetThemEatRand
LetThemEatRand's picture

American Express Co. v. Italian Colors Restaurant, No. 12–133 (June 20, 2013)

AAA charges the consumer for hearings in the amount of several hundred an hour.

Many companies now use in house lawyers who don't charge them by the hour.  The consumer has no choice but to hire a lawyer who does.

So you had a positive experience.  Great for you.   The average consumer has no idea even where to begin, and your experience is no longer relevant due to changes in the law.  What say you?  Give me specifics and don't just tell me that you had a bank back down once.

From my post above:  "While most still claim that arbitration is less costly than litigation, its costs are increasing. According to a recent survey by Public Citizen, a consumer watchdog group, the cost of initiating an arbitration is significantly higher than the cost of filing a lawsuit: $6,650 to $11,625 to initiate a claim to arbitrate a consumer claim worth $80,000 versus $221 to file that action in a particular county court. Add to that the arbitrator's fees -- multiplied by three if a panel is involved -- in addition to administrative costs, and the process appears to be less of a bargain."

Sun, 10/27/2013 - 01:13 | 4094535 El Vaquero
El Vaquero's picture

I say that those arbitration agreements were already being enforced by most courts anyway.  There is a ton of case law predating that SCOTUS decision that is consistent with it.  The rules haven't changed all that much.  And I didn't have the arbitration experience.  I just watched dozens of people use the arbitration strategy successfully.  And the one person that I watched use it unsuccessfully (near $30k debt, the bank ponied up) wasn't charged several hundered per hour.  With AAA, the consumer pays $200, period.  Go to page 14 of the link that I posted. 

Sun, 10/27/2013 - 01:20 | 4094542 El Vaquero
El Vaquero's picture

"Most of these companies now have in house counsel who will represent them on salary.  They don't need to hire anyone."

 

Only if that in house council has passed the bar in the state that the renter lives in.  I know the bank I delt with (and am still dealing with, but I'm the plaintiff now) does not have in house council in my state.  I'd bet it's the same for blackstone. 

Sun, 10/27/2013 - 11:29 | 4095081 LetThemEatRand
LetThemEatRand's picture

It's called a forum selection clause and they are becoming common.  The consumer is required to arbitrate in the state where the company is located, which closes the "they have to hire a lawyer in your state" loophole.   I get that you claim you've seen some examples where consumers beat the system (I note that you admit above that you are still litigating your own case, which tends to support my view that it's not easy to make these go away), and you can wipe your ass with the fact that the big boys are closing these loopholes, but they are.  I guarantee you millions of consumers are going to be fucked hard by these clauses.

Sun, 10/27/2013 - 12:03 | 4095157 El Vaquero
El Vaquero's picture

I've been through enough court records to know that most people will just roll over and take it in the ass, no matter what system they have. 

Sun, 10/27/2013 - 12:25 | 4095199 LetThemEatRand
LetThemEatRand's picture

No doubt that is part of their plan.  But plenty of people who stand up also get it in the ass.  Sometimes the bank or large company backs down to the savvy consumer for financial reasons, but other times they don't.  My point throughout this thread is that they are making it more and more difficult for the little guy to fight them.  Wouldn't you rather have a jury of your peers hear your case?   And doesn't it concern you that if you lose in arbitration that you could end up owing thousands of dollars in arbitration expenses?   It doesn't work that way in court.  The court does not charge for its time.  Some costs may be awarded to the losing party, but in arbitration those costs tend to be much, much higher.  I hope you beat the man.  Good luck in your fight.

Sun, 10/27/2013 - 14:21 | 4095488 El Vaquero
El Vaquero's picture

I would rather be in a court room.  While there are arbitration forums where you at least have a chance of a fair shake, there have already been examples of forums that are shills for the banks, hence my comment about NAF.  Besides, I get the rules of procedure to work with in a court.  FRCP 26-37 are very powerful, and most states' rules are modeled after the FRCP.

 

I have also watched people stand up and fight in court and lose their asses because court rules can be very complicated.  I watched one elderly woman get hosed because she thought that simply because she had tried to do the right thing, she would be OK.  She had suffered a loss in income and that left her overextended.  She had tried to get on hardship programs, she tried to negotiate with the bank and she even tried some of those debt negotiation companies.  It had worked her other cards, but not with Capital One.  They hard-assed her, then sued her.  The attorney for the bank acted like he was compassionate because he felt she had been taken advantage of by the debt negotiation company (most are a scam, IMO,) while he was twisting the knife he was sticking in her gut.  But, she admitted to the debt and the law was crystal clear on this.  The judge even looked disgusted with herself as she issued the ruling.  The attorney did not look disgusted in the least bit, however.

 

The point is, you can get a fair trial or justice in either the court system (that varies wildly state to state) or in arbitration, but you have to know the ground rules and you have to pursue it aggressively.  Simply "doing what is right" and showing up with a sob story will get you screwed six ways from Sunday.  If you cannot afford an attorney or get one to take your case pro bono, you have a lot of research to do, and you have to use what you learn with a ruthlessness that many simply cannot match.  You have to do things that are counter intuitive to the average bum on the street.  I looked at everything the bank was claiming, figured out what they would need to prove those claims and then used the discovery process to force them to give me every last shred of evidence that would prove their case.  A lot of people balk at that idea.  They don't want to face the evidence.  Once you get court procedures involved with this, they have to comply in a timely manner, or they will not be able to present the evidence, so long as you stick with the proper court procedures.  It also helped that no matter what they presented (they didn't comply with my requests,) I would have been able to present contradictory evidence.  Hell, I even went through documents they filed with the SEC and found evidence that they had changed their record keeping practices during relevant time frames.  There is a reason that I won when so many lose, and it has nothing to do with whether I am more or less deserving.  I geared up for all out war, and I made that very clear from the beginning. 

 

And then they came after me again.

 

As for any debts incurred, I still have the nuclear option.  Chapter 7.   I'd be willing to go that route solo.  Most, not so much. 

 

Sun, 10/27/2013 - 09:36 | 4094899 ronaldawg
ronaldawg's picture

Prove that there are arbitration agreements in residential home rental contracts.

Sun, 10/27/2013 - 10:57 | 4095035 Freewheelin Franklin
Freewheelin Franklin's picture

So, someone who doesn't pay their rent should be allowed to stay in the house? What do you want? Mommy and Daddy to hold your hand when you sign a lease agreement? And do you think government really gives a shit about you? Do you think they ever will or can? Where the fuck do you people come from? You sign something, you read it first. if you don't understand it, you ask someone to explain it. If that is too hard, I suggest you just off yourself now and save yourself a lot of misery.

Sun, 10/27/2013 - 11:44 | 4095113 LetThemEatRand
LetThemEatRand's picture

So someone who rents you a house with hidden problems should not have to fix them?  I think that's the point of the discussion, but way to be the Red Coat in the first line with the musket defending the giant corporation that is hiding safely in a castle somewhere else, and that is fucking the consumer and laughing that you are such a sucker to defend them.  

Sun, 10/27/2013 - 09:18 | 4094880 GMadScientist
GMadScientist's picture

"A rather painful introduction..."

What pain? They have insurance up the ass to pay for lawyers to defend them from "little people"; they're Leona Helmsley on steroids and crack.

Sat, 10/26/2013 - 21:08 | 4094187 MrVincent
MrVincent's picture

I used to be a real estate investor back in the old days. Being a landlord is a 24/7 job. You just cant buy a house and rent it out and be done with it.

People who think they can just buy homes and rent them out have no idea what they are getting themselves into.

Sat, 10/26/2013 - 21:20 | 4094210 Magnum
Magnum's picture

24/7 is a stretch but yeah the only successful landlords are those who live not too far away, know how to use tools, and have a lot of local contacts.

Sun, 10/27/2013 - 09:19 | 4094883 GMadScientist
GMadScientist's picture

Or....<drumroll>...a management company.

Sat, 10/26/2013 - 21:28 | 4094219 El Hosel
El Hosel's picture

These people are not people at all they are Wall Street. They are the Machine that can't lose even when they do. They win others lose, guaranteed by the Federal Reserve and our "Leadership". The Leadership with no Budget or Boundaries, the Regulators with no regulation, and the Laws that apply to "Others".

"Winning" on Wall Street, Bitchez. Late fees anyone?

Sat, 10/26/2013 - 21:32 | 4094223 ebworthen
ebworthen's picture

Helping a friend who is out of state rent her house.

Non-stop something or other.  Clogged kitchen drain because they are putting anything and everything down the disposal.

"Gee, the fireplace is letting smoke in..." (helps to get a draft going and crack a window kids).

"I see a spider, can you call an exterminator?"

Like they are at the Ritz paying $500/night.

Hope the banks get hosed over this.

Sat, 10/26/2013 - 23:42 | 4094420 RafterManFMJ
RafterManFMJ's picture

I'm confused by why you gave them your real phone number? Rookie mistake.

Sun, 10/27/2013 - 01:13 | 4094537 ebworthen
ebworthen's picture

lol...well...she is paying me to field the phone calls and do the work...but it's not a duplex or multi-plex...so...

Sun, 10/27/2013 - 07:36 | 4094749 GCT
GCT's picture

+1000 eb.  If you have ever owned and rented property it is a nightmare alot of times.

My home has roaches well duh lady you might want to clean out the home of all the potatoe chips on the floor and clean out all the syrup and sugar you spilled in the cabinets.  By the way cardboard boxes are not home storage devices. 

My air conditioner is not working as it runs all the time.  Hmmm not a tough one to figure out set the thermostat to 72 instead of 60 degrees and while your at it leave the fan switch on automatic and not fan. 

My air conditioner is not cooling good enough it is only 80 in the house.  Duh it is only 117 degrees outside, you should be happy it is getting that cold seeing how most HVAC systems will only cool the home + or - 20 to 25 degrees DEPENDING ON OUTSIDE TEMPERATURE.

My sink is clogged!  Well it is not meant for you to stuff your fishbones down.

My toilet is clogged.  Good use the plunger I provided.  Reply  I am not going to do that it is nasty!

You need to paint my children's bedroom I think it is mold only to arrive to check it and the children have thrown coke all over the walls.  Tell the mother to clean up the walls and she gets offended.  

I could go on and on about how we talk sheeple on this very site and well alot of renters are just that stupid shitheads that think your at their beck and call for their stupid shit because they are too lazy to lift a finger to do anything.  Oh and the best for last you go over there and they have their extended family now living there including their third cousin one removed and complain about damage they did to the home!

The best one I checked was a renter complaining about her refrigerator not working only to get there and she took a knife to it!  Or walk in on two rotweillers that chewed holes in all the interior doors and the renter wants them fixed.  My friend had a tenant call FHEO on her after she got drunk and ran through the garage doors and slammed into the interior wall and the owner told her she would have to pay for the repairs.   Your actually guilty until you can prove your innocent with that nutso bunch! 

 

 

Sun, 10/27/2013 - 09:12 | 4094871 shovelhead
shovelhead's picture

This is why you rent to guys who use the spare bedroom to illegally grow weed.

They fix anything that goes wrong and never want you to come over and look around.

Sun, 10/27/2013 - 11:15 | 4095059 RSloane
RSloane's picture

Negative. We had horrible mildew damage in two bedrooms, the basement, and first floor study. Two of the ceilings had to be ripped out and completely replaced. Interior irrigation and misting systems suck badly for the basic structure of the home as well. We fixed everything and sold the property. Never again.

Sun, 10/27/2013 - 15:32 | 4095632 RaceToTheBottom
RaceToTheBottom's picture

Probably are also cooking meth.  That will help your appreciation.....

Sun, 10/27/2013 - 10:31 | 4094995 Waterfallsparkles
Waterfallsparkles's picture

I have a property that I rent in a mostly Sec 8 neghborhood.  My Tenants are not Sec 8 and yes I get less rent.  But, I also get less damage.

One of the neighboring Landlords rents mostly to sec 8.  I was talking with her this week and she was telling me that Sec 8 wanted her to replace the carpet for her Tenant because the Tenant, who smokes burnt holes all over the carpet.  But, the most disgusting thing she told me is that this woman who is bi polar poops in her underpants and then takes them off and leaves them on the floor everywhere.  She has had someone go over and clean up after her.  She is getting pretty disgusted with the Sec 8 Tenants.

One of her classics was when her Tenant said that she could not pay her portion of the rent because a mouse ate her Money order.

Also, the neighborhood has become over run by rats, they will not put the lids on the trash cans and in many cases just throw it on the ground.

They call and want you to come over immediatly.  The Landlord that I was talking about above said she had a Tenant that would call every time her Daughter would have a bowel movement becauce it would not flush down the toilet.  She would go over and try to break it up with a stick.  She finnaly suggested to the Mother that she give her stool softeners.  I really laughed at that one because she was trying so hard to be diplomatic.

Sun, 10/27/2013 - 09:21 | 4094885 GMadScientist
GMadScientist's picture

Stop blaming the tenant for the fact that your friend did shitty maintenance on her home and can't pay her own fucking mortgage without renting the place out.

Sat, 10/26/2013 - 21:39 | 4094236 post turtle saver
post turtle saver's picture

cannot wait to see the trail of class action lawsuits from this... it'll be epic

Sat, 10/26/2013 - 21:10 | 4094193 cobra1650
cobra1650's picture

why the fuck would somebody agree to rent a house that was uninhabitable?

Sat, 10/26/2013 - 21:17 | 4094204 Haloween1
Haloween1's picture

How did the inspector sign off on the property if it wasn't inhabitable?  Was he not doing is job, or is this another HuffPost red herring?

Sat, 10/26/2013 - 23:37 | 4094423 Harry Dong
Harry Dong's picture

Inspector is for the landlord. They use his report to compare with move out. If there is a coffee stain in the carpeting and it wasn't in the inspection the tenant gets charged for replacing ALL the carpeting. Been there fought it and won.

Sun, 10/27/2013 - 01:27 | 4094541 Harbanger
Harbanger's picture

"Inspector is for the landlord."  Yes, the gov is only looking out for the 1% that pay property taxes.  That's why some people should never own property.  Btw, for mister halloween- inspectors sign off on their particular inspection. plumbing, electrical, construction, etc..  If the local gov agency didn't give them a certificate of occupancy, the premise is technically not habitable.

Sun, 10/27/2013 - 09:38 | 4094902 ronaldawg
ronaldawg's picture

City inspectors especially in Los Angeles are worthless.

Sat, 10/26/2013 - 22:45 | 4094344 bh2
bh2's picture

Yes, that's certainly the right question. The article makes it appear these folks rented sight-unseen and discovered these problems only at move-in.  Are they daft? I cannot imagine renting a place without first seeing what I get for my money -- good or bad.

If the landlord isn't fixing bad plumbing, my guess is a call to the local city inspector would do the trick. If a home is, in fact, uninhabitable, it cannot be inhabited and cannot be rented to anyone.

There's something about this story that does, indeed, smell a bit odd.

Sat, 10/26/2013 - 21:17 | 4094205 Magnum
Magnum's picture

As a landlord I can say that tenants have a great deal of clout in the transaction that occurs every month. Technically a tenant can refuse to pay rent if the home needs repair.

Sat, 10/26/2013 - 21:32 | 4094224 joego1
joego1's picture

In California you can make the repairs yourself and deduct it from the rent.

Sat, 10/26/2013 - 22:05 | 4094274 Yen Cross
Yen Cross's picture

 NOT exactly. I still own some property in Calif-lib-ya.  The renter/tenant can make repairs. (You can deduct it from the deposit)

 Additionally, if the tenant finds the landlord (lacking upkeep), things get really nasty.

Sun, 10/27/2013 - 09:40 | 4094908 ronaldawg
ronaldawg's picture

Yes exactly tenants have right to deduct repairs from rent. You may be a sleezeball and TRY to take the money from the deposit which eventually will cause you a trip to small claims court.

Sat, 10/26/2013 - 21:35 | 4094228 Haloween1
Haloween1's picture

Agreed, don't pay the rent and the move out if necessary.  That's the beauty of being a renter.  They could also call in the county health department if there's leaking sewer pipes.  That would force the issue, or it might turn out to be one of the City's pipes, who would then be responsible for fixing the problem.

This is looking more and more like a BS HuffPost handwringer whine session.

Sun, 10/27/2013 - 01:07 | 4094527 sethstorm
sethstorm's picture

That makes the assumption that the next property is not in same/worse conditions and can otherwise fit the requirements of the party looking to rent from someone.

In all practicality, your defense of the slumlord has no basis in logic.

Sat, 10/26/2013 - 23:06 | 4094384 Diogenes
Diogenes's picture

"Technically a tenant can refuse to pay rent if the home needs repair."

 

Technically no he can't. They are 2 separate issues. If you don't pay you can be evicted.

Sat, 10/26/2013 - 23:30 | 4094410 Magnum
Magnum's picture

I believe an eviction may not occur if a tenant demonstrates that there are needed repairs.  

Sun, 10/27/2013 - 00:43 | 4094496 LetThemEatRand
LetThemEatRand's picture

Not true.  The tenant needs to bring a court action, which means hiring a lawyer by the hour.  Lawyers by and large don't take these cases on contingency.  A landlord with legal knowledge can fuck the tenant, hard.  

Sun, 10/27/2013 - 09:42 | 4094914 ronaldawg
ronaldawg's picture

Not in California.

Sat, 10/26/2013 - 23:32 | 4094413 Harry Dong
Harry Dong's picture

Michigan here. You must pay the rent but you can pay it into an escrow account until remedy.

Sun, 10/27/2013 - 00:46 | 4094493 LetThemEatRand
LetThemEatRand's picture

"Technically a tenant can refuse to pay rent if the home needs repair."

Not really.  They need to pay the full rent into the court to hold in escrow, find a lawyer and pay him (usually several thousand up front), and sue.  If they win, they keep the difference.  If they lose, the landlord gets what is in escrow.  If they don't pay the full rent into escrow and let it sit there for months on end, they can't sue.  Court wll throw it out for failure to pay the disputed amount into escrow.  What you say is how it should be.  It isn't the law.

Sun, 10/27/2013 - 01:03 | 4094520 Harbanger
Harbanger's picture

Something tells me you never owned property.  You need to move out of Florida.

Sat, 10/26/2013 - 21:36 | 4094231 post turtle saver
post turtle saver's picture

Scottsdale AZ, it is _the_ place for shady building/rental/property schemes... why am I not surprised

Sat, 10/26/2013 - 22:10 | 4094279 MedicalQuack
MedicalQuack's picture

Don't think it's just Wall Street, look at Health Insurer, United Healthcare, they are getting in to this market too..here's their activity in Ohio..and they are in business with a bank...and don't forget United Healthcare also has their own bank with over a bllion on depsoit...

http://ducknetweb.blogspot.com/2013/10/unitedhealthcare-doesnt-want-to-l...

Here's another project in New Mexico with United Healthcare...

http://ducknetweb.blogspot.com/2013/06/blackstone-is-not-only-corporatio...

Sat, 10/26/2013 - 22:21 | 4094297 Flagit
Flagit's picture

ok, im trying to locate a video clip i watched on google video about 6 years ago.

the setting was a  small conference in which a man wearing a form of a robe, one piece button down front, took to the podium and gave a slide presentation. the man was caucasian, with a robe, bald top with a wooly willy type beard, and glasses, that spoke fluent english with a slight accent that was not western.

the speech and slide started with ancient tribal customs of trading goods. he attempted to define the parallels between value/currency/money, and how the way services are traded began to evolve.

i cant even begin to say where or when it was filmed, but would be nice to see it again.

Sun, 10/27/2013 - 14:55 | 4095563 Flagit
Flagit's picture

6 downs?

seriously?

Sat, 10/26/2013 - 22:24 | 4094301 max2205
max2205's picture

Can't wait for the price controls to set in....there is no free market...just FSA

Sat, 10/26/2013 - 22:25 | 4094305 q99x2
q99x2's picture

They should quit paying rent and take the copper wiring with them when they leave.

Sun, 10/27/2013 - 11:03 | 4095040 I Write Code
I Write Code's picture

Yeah, but they really wouldn't care.  In fact if you burned the house to the ground, the companies would say thank you.  The properties that such speculators buy are going to generally be where the LAND carries most of the value, and some period of negative cash-flow is figured in for the holding period until Bernanke monetizes the debt and mirable dictu the economy recovers (as if).  So that might be the next step: buy distressed properties, bulldoze, and plant arugula and heirloom tomatoes.

Sat, 10/26/2013 - 22:35 | 4094327 Never One Roach
Never One Roach's picture

Wait until renters wise up and simply stop poaying rent like home owners stop paying their mortgage and remain in the house, living rent-free for years without eviction.

Sat, 10/26/2013 - 22:37 | 4094331 sangell
sangell's picture

I knew this would be a problem. Its a big enough problem with apartments that have in house maintenance staff but with single family homes spread out over miles it becomes impossible. An inhouse maintenance department for a garden apartment complex has parts because the appliances are of a single make. They can even take parts from a vacant unit to repair an occupied one if they are short. They know where disconnects and valves are. None of that applies to single family homes built by a myriad of builders over a period of years. Its a three trip process. Drive out and trouble shoot, go and fetch parts, return and make repair. With travel time even a good maintenance mechanic will not get much more than a single property per day, if that.

Sat, 10/26/2013 - 22:50 | 4094353 Seize Mars
Seize Mars's picture

Very good point. Wall street has no idea how to run an actual business. All they know how to do is lie and steal (i.e. make deals, and engage in repo lending).

Sat, 10/26/2013 - 22:49 | 4094348 Yen Cross
Yen Cross's picture

 I can hear a (pin) drop ~  Splash~~~~  Moment marked 7:47 P.M. gmt-8

Sat, 10/26/2013 - 22:59 | 4094350 Arthur
Arthur's picture

Many cities such a s Chicago have landlord tenant ordinances that are lawyer and tenant friendly.  Landlords must pay attorneys when a violation is proven, which is usually easy to do, only need a violation to pay the lawyer, scope and severity do not matter.

For those w/o protection of a good ordinance a small claim action under the lease will get people relief quickly, either a quick fix or out of the lease on favorable terms.

Real estate is inherently local.  You need on site managers or you will get taken to the cleaners.

That or the plan is to rent, fix, dump as the market improves.  Risky as the economy slows moves along.

 

 

 

Sat, 10/26/2013 - 23:26 | 4094406 Yen Cross
Yen Cross's picture

 Arthur like myself has owned and rented property!

  Thank You Arthur. Fuck off you poser NoDebt!

Sun, 10/27/2013 - 09:45 | 4094920 ronaldawg
ronaldawg's picture

So it sounds like the management companies are the problem.

Sun, 10/27/2013 - 00:23 | 4094411 evernewecon
evernewecon's picture

 

To explain my wherefrom while still seeing

serfdom in Obamacare, I call myself "market progressive,"

which is not being into privatizing the profits while 

passing on the costs, or enjoying privatized

profit boxes, or monopoly, etc., then only to

profit from concomitant adversity, then 

blaming the vulnerable and the government

while profiting from the adversity created

and justifying more privatization.

 

Perfect entry/information is an esoteric

construct never attainable; and if it were,

no one would make a profit.

 

Directed sectors are the other extreme.

 

Process informed markets, including where

universal access is one of the items 

being selected from an economic smorgasbord,

make sense.  That allows for anti-fragility

still, as I see it.  How can some people

think in terms of social Darwinism while,

among some of those, still rejecting 

a basic Darwinism, though that can be 

interceded as much as any economic or 

biologic system?

 

I don't consider ObamaCare that because

it also creates serfdom.

 

Risk driving eligibility with profit boxes

built into the scheme is different from

single payer without immunity from anti-trust,

and the latter does not define privatizing

the profits without socializing the costs.

 

But actively applying risk equalization 

risk equalization beyond that does that,

and with subsidy funneled through it, 

service classing ("tiering") is also avoided

while achieving universality, if based on

a simple prior year income test.

 

ObamaCare also does not resemble the last 

part of that.

Subsidy is based on present year 

guesstimates of income, and is subject

to an overriding kill switch as to the

subsidy.

 

(There're more democratic means of cost

braking, such as mimimum cross-the-board

accountable care percentages in health care.)

 

When the scream "entitlements" on MSM financial

TV, they're pretending they never heard of

privatizing the profits and socializing the

cost.

 

So they might as well be emergency managers

or LBO investors shafting pensions.

 

It's pre-texted privatization and Simpson Bowles-

equivalent.

 

Making a buck of less well off people, with

the government subsidizing that, instead 

of fair markets and education and enabling

mechanisms defines most major sectors.

 

But more silly, the kids get locked-in

debt for life and grow up with frozen

yogurt shops selling GMO-HFCS, fat, 

artificial color and artificial flavor.

 

The latter three are not all that big a

deal, but the GMO-HFCS going to the kids

and before them the toddlers includes 

these potential concerns.

 

http://www.dw.de/pesticide-illness-triggers-anti-monsanto-protest-in-arg...

 

https://duckduckgo.com/?q=Weill+and+leaky+gut+syndrome+for+you+to+correl...

 

http://pages.citebite.com/x2u2b3s3a7qyi

 

http://www.centerforfoodsafety.org/video/2519/cfs-videos/ge-food

 

 

Fructose per se:

http://pages.citebite.com/x1s8h0n0e8ksr

 

 

These are as to the health care points above.

They include venues more conservative.

The subject issues are not so much left vs. right based.

Each would agree, for instance, that in the case of

a bakery story, the primary people being served are

the owner-baker, and the person coming in to buy 

bread, not the people insuring the premises.

 

http://blogs.investors.com/capitalhill/index.php/home/35-politicsinvesti...

 

Defines a profit box:

http://pages.citebite.com/i1y4m1t7o7pxu

 

http://financialpress.com/2011/12/09/obamacares-mlr-bomb-will-create-pri...

 

http://financialpress.com/2011/12/09/obamacares-mlr-bomb-will-create-pri...

 

http://blogs.wsj.com/corporate-intelligence/2013/07/12/union-letter-obam...

 

 

The left today has brought forth very much as to inequities

 

 

http://www.washingtonpost.com/politics/health-co-ops-created-to-foster-c...

 

http://www.pnhp.org/news/2012/may/cant-hold-tongues-on-obamas-health-law

 

(I hope the links are interesting.)

 

 

Sun, 10/27/2013 - 06:38 | 4094710 Non Passaran
Non Passaran's picture

What a load of off topic garbage!

Sat, 10/26/2013 - 23:51 | 4094435 rustymason
rustymason's picture

How many peasant revolts began from our situation? Absentee landlords, millions in poverty while the rich become obscenely so; one set of laws for the people, another set of priviledges for the law makers; massive government regulations and bloodthirsty tax collectors and police roaming the land unchecked. Holy shit this is getting serious.

Sun, 10/27/2013 - 00:04 | 4094454 Yen Cross
Yen Cross's picture

   Ok Rusty I'll bite.  I'm the giant Marlin off the Northern Baha Peninsula.

Sun, 10/27/2013 - 00:07 | 4094457 Harry Dong
Harry Dong's picture

 From the WSJ:

LAS VEGAS—In a city dotted with tens of thousands of vacant houses, Jericho Guarin figured it would be easy to buy his first home. But nearly a year after beginning a search late last summer, he has come up dry.

 

“It has been a nightmare,” says the 37-year-old U.S. Air Force officer. “There are plenty of empty houses, but they’re just not for sale.”

Thank you for your service Mr. Guarin, now go rent from Blackstone.

Sun, 10/27/2013 - 15:40 | 4095651 RaceToTheBottom
RaceToTheBottom's picture

And they won't come on the market until the accounting rules are reinstated.....

Sun, 10/27/2013 - 00:13 | 4094461 Too Big 2
Too Big 2's picture

The real estate rental market is more efficient than the stock market as the properties that are most competitive (kept in good repair and priced accordingly) will outperform those that are not kept up or priced accordingly.  If the hedge funds plan is to be slum lords then perhaps the hedge funds will lose their ass this time. 

Sun, 10/27/2013 - 00:14 | 4094464 rustymason
rustymason's picture

Who will cleanse the temple of the money-changers this time?

Sun, 10/27/2013 - 00:19 | 4094468 Yen Cross
Yen Cross's picture

  You're so lost Rusty. You've not the slightest inkling of what is headed your way>

Sun, 10/27/2013 - 00:31 | 4094483 Mentalic
Mentalic's picture

Slumdog billionaire !!!

Sun, 10/27/2013 - 00:32 | 4094484 Vooter
Vooter's picture

Pack your shit up, leave, and make sure to accidentally knock over a candle on your way out...

Sun, 10/27/2013 - 00:41 | 4094494 yogibear
yogibear's picture

Everywhere you look it's banks, medical facilities or schools. All based on cheap money and financialization of the US.

 

Sun, 10/27/2013 - 00:59 | 4094513 Atomizer
Atomizer's picture

The Jefferson’s Theme Song for Obama’s Affordable Housing Project[s].

Sun, 10/27/2013 - 02:24 | 4094581 Downtoolong
Downtoolong's picture

Come one, be reasonable, the title of “Slum Lord” is a step up for these Wall Street folks.

Baby steps.

Of course what I’d really like to see is a U-Tube video of each and every one of these new slumlords trying to replace the ring seal in a toilet. You could make a hilarious effing reality series out of them trying to decide whether to use a box wrench or Phillips head screw driver to remove the anchor bolts.

Sun, 10/27/2013 - 02:44 | 4094588 El Vaquero
El Vaquero's picture

I fucking hate setting toilets.  Then again, I don't know anybody who likes it.  It's a shitty job.  I think you're onto something here.  Can we get a youtube of Jamie Dimon setting a toilet thrown in too?

Sun, 10/27/2013 - 02:53 | 4094597 are we there yet
are we there yet's picture

The economy is in the toilet, And Obama is a slum lord.

Sun, 10/27/2013 - 08:41 | 4094815 MilwaukeeMark
MilwaukeeMark's picture

The mob was taken down in Vegas because the entire gambling franchise had simply become too lucrative to permit them to own. Wall Street and the government wanted to move in to pillage it for themselves. A recent trip to Vegas, after a 40 year absence, confirmed the changes from mob to Wall Street. From the $6 bottles of water placed in your room, to the crappy steaks @$60 each and overpriced bar drinks, it isn't about value, it's about Wall Street fleecing the sheep. This is the template for the Wall Street/government cabal going forward. Wall Street will pillage and the politicans will get their tribute, either as taxes or in political contributions or free jet rides and comped booty.
By the way, in Casino, the Tom Smother's political character was based on Harry Reid.

Sun, 10/27/2013 - 08:58 | 4094850 theprofromdover
theprofromdover's picture

Go to the local county or state office and tell them to enforce the building codes if the house is uninhabitable or a health hazard.

You have to use the system. The system will eat itself.

Sun, 10/27/2013 - 09:19 | 4094882 whoopsing
whoopsing's picture

Pro, this does not always work, at times its in the interest of the larger municipality to look the other way at these places because they need a rental to place DSS recipients. and they dont want them in their neighborhoods

Sun, 10/27/2013 - 09:49 | 4094924 ronaldawg
ronaldawg's picture

Getting the City of Los Angeles to respond to a complaint is impossible.

Sun, 10/27/2013 - 10:11 | 4094962 ToNYC
ToNYC's picture

Blackstone is an intermediary providing new paper to fill 401-Ks and pension plans. When the foundations and walls collapse in their ghost-maintained housing, the people can sue each other.

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