Meet Wall Street: Your New Landlord

Tyler Durden's picture

Blackstone Group appears to be trying to oligopolize the business of renting single-family homes in the U.S.. As Bloomberg reports, after the housing crash left more than 7 million foreclosed homes in its wake, the investment firm has spent more than $7.8 billion purchasing about 41,000 single-family homes for rental conversion. The world's largest private equity firm has quickly become the largest landlord (of rental homes) in the U.S. and in October, Blackstone offered the first-ever "rental-home-backed" security on Wall Street. One has to wonder if this was the plan all along?


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Incubus's picture

Ah, Jesus christ.  When are we just going to drag these motherfuckers out onto the streets and just hang them by their nuts from the power lines?

Manthong's picture

Only 41,000?

Geez, I should think the brain trust there could have least gotten to six figures.

Wake up, kids...  

Beam Me Up Scotty's picture

Wrong. The biggest landlord is Uncle Sam. Ever hear of property taxes? You are renting from .gov. Try not paying them and see how fast you get evicted!!

Richard Chesler's picture

To Blackstone renters:

Trash that shit!

hedgeless_horseman's picture



Wall Street investors were not the only ones to see the wisdom of becoming landlords...


Thu, 05/06/2010 - 08:45 | Link to Comment hedgeless_horseman

I repeat, all of this funny business in the markets should drive thoughtful investors to disintermediation:

1. In finance, withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest them directly.

2. Generally, removing the middleman or intermediary.

Of course, disintermediation is bad for governments selling debt and all financial firms, but often very good for small businesses needing capital. I am suprised to not read more about disintermediation here, and on similiar blogs, apart from advice to buy gold and take posession. Micro lending in your own community, angel investing, and even certain types of municipal debt offerings are good topics for consideration.

Disintermediation, bitches!!!!!

How can you implement it in your portfolio, business, and life?


Thu, 05/06/2010 - 09:53 | Link to Comment hedgeless_horseman

Landlord/landlady + tenant - real estate agent = disintermediation



Sat, 08/14/2010 - 23:11 | Link to Comment hedgeless_horseman

I do not advocate inaction, only disintermediation, that is the removal
of banks as intermediaries to investment. As an example, one can buy a
property with cash, and without an agent, and be a landlord directly. 
It used to be the case that one needed to be very, very wealthy before
really needing the services of a bank.


Fri, 09/14/2012 - 12:12 | Link to Comment hedgeless_horseman

I agree.  Disintermediate.  Be a land lord.

DaveyJones's picture

"the 'services' of a bank"

I think I finally understand how an oxymoron works

eatthebanksters's picture

So, millions lose their bailout for them by the government/taxpayer....the big banks who made the loans didn't do workouts because of moral hazard - imagine that, TBTF banks being concerend about moral hazard....and in the end the TBTF banks get bailed out by the government/taxpayer and make HUGE FUCKING PROFITS from foreclosed property.  

While I'm a conservative I do have a big problem with this scenario...there never should have been a bailout of those corrupt motherfuckers and their big banks....if there was to be a bailout it would have been better to support the masses rather than a small number of Wall Street types.

Fuck Obama and his banker buddies.

Manthong's picture

"Try not paying them and see how fast you get evicted!!"

hmm.. but if everybody protested by just STOPPING paying everything..

they would be put in their places real fast.

 how do you spell "up-ended balance sheet"?

economicmorphine's picture

You still don't get it, do you Manthong.  I know 41,000 homes that taxes are going to be paid on.  In fact, the actual number is in the millions.  Close to 1 out of 3 US homes are owned free and clear.  Not everybody is a deadbeat.  Not everybody is a stupid fucking idiot who believes everything he is told.  Not everybody is a sheep.  The fact that you are doesn't change the fact that millions of us aren't.  

James_Cole's picture

If i had a nickel for everyone I've come across banking on rents skyrocketing.. invitation homes just seems like another on a long list of financial schemes we'll be hearing about collapsing in a few years. 

Manthong's picture

cool.. me too, but I still think the way to f' m is to just stop playing the game.

DaveyJones's picture

fuck them all

This is a long time coming, an incredibly corrupt system where, in the end it really doesn't matter just who is in control, the corrupt political leaders or the corrupt industry /financial leaders. It takes both to make it happen and it takes the punishment of both to correct. History bears this out - with currencies and debt but just about everything else. We are nearing a breaking point and this time it's a global, mathematical, and raw resource scale never experienced in human history. All I can think is that I owe my children more.  

ultraticum's picture

A 5% cap rate wouldn't work for you and I.  But it will work for the money jobber.  Why?  Because if this 5% carry trade goes south, they don't stand to lose a dime.  Pitchforks!

ajax's picture



"One has to wonder if this was the plan all along?"  It wasn't.  What a ridiculous postulation. Blackstone vampires are simple opportunists, end of fucking story.  They'll be renting tents to the poorest of the middle class soon enough, and port-a-cabins as well - anything for a buck.

akarc's picture

To Blackstone renters. Get a tent and let the motherfuckers beg people to rent.

Ban KKiller's picture

If you have time and are a true subversive or just a true "conservative" or wish to be a deadbeat...

Challenge your "servicer" of your mortgage to validate the debt under your state's laws. Where is the note? How was it acquired? With what consideration? Purchased from whom? When? Where? Who holds the note now? 

Learn your state's Uniform Commercial Code regarding: Enforcement of a note, rights of a note holder, transfer of a note, holder in due course, etc. Most of you know about securitization and how "they" never performed all of the assignments within those those PSAs. 

When servicer can not provide any true validation of a debt ( do you accept a letter saying "because we say so"?) get a set of balls and quit paying your mortgage. 

I did all this and am living in my house for free. Not my fault, can not find  any party with standing to foreclose on me. I do pay taxes and insurance of course. 

Fuck the banks over by making them prove chain of title, ownership and possession. I like being an enemy of the banks. 

patb's picture

Good for you.


I took the other side of the coin, I bought a house all up with the previous owner having inherited it from his father.

Title search was Farmer, developer, Owner, Son.  

But, I encourage people to challenge title.

patb's picture

Good for you.


I took the other side of the coin, I bought a house all up with the previous owner having inherited it from his father.

Title search was Farmer, developer, Owner, Son.  

But, I encourage people to challenge title.

akarc's picture

Unless you live in a state like Florida wghere the Supreme court said, oh no we will have no more of that. 

Seer's picture

One has to find a place to locate tents, which can be problematic.  But, yeah, I was going to suggest that parents invite their kids back home: expecting that it only need be for a short period of time, long enough to tank the likes of Blackstone.

economicmorphine's picture

You understand that they're securitizing it right?  You know what that means, right?  Chances are they've already offloaded the risk.  Hell, if you're playing EFTs, you're probably buying the very securities you are encouraging others to trash.  Idi-fuckin-its.

TBT or not TBT's picture

Yeah, go all, like, "securitize this, bitchez!"

Rukeysers Ghost's picture

There won't be any Blackstone renters. These clowns have scooped up properties for nothing at the auction, but they are not suitable for renting. These 3-4 bedroom single family homes come with big overhead like property taxes, heating/cooling bills and upkeep that will price them out of the market for the average shlub working 3 jobs to put food on the table. Also there is the added drag of maintaining unrented units.


Slumlording is a tough racket.

economicmorphine's picture

Slumlording is the easiest racket there is.  Don't improve it at all and the government will place trash in it and pay you top of the market.  My God, what the hell has happened to this site?

Promethus's picture

In one of the affluent neighborhoods in my area formerly $400K McMansions were turned into section 8 housing complete with marble tiles, swimming pool and three car garage. Park a family of scum bags in, let the taxpaying neighbors pay the rent and pay for the damages done by the FSA, watch the taxpaying neighbors houses lose value, buy more distressed properties, rent to more scum bag, rinse and repeat. Welcome to Mr. Obama's neighborhood.

Ghordius's picture

aren't property taxes local? or is Uncle Sam not the nick for the US federal gov anymore?

Beam Me Up Scotty's picture

You local .gov is nothing more than a suction cup on the tenticle of Uncle Sam.

Osmium's picture

Brilliant analogy, well done. +100

Seer's picture

Check out the Chamber of Commerce web (it's international).

TBT or not TBT's picture

Some local governments are like those dual automatic breast pump systems, not just the one lonely suction cup.

sleigher's picture


DUNS numbers.  They are all incorporated under the federal gov.  Local or not, they own it.  

SilverDOG's picture

Beam Me Up Scotty



Some states may still allow allodial tax/title payment; removing future tax upon property....

if their is -0-, zero debt.

VD's picture

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."


Jumbotron's picture

Of course this was the plan all along.  Securitize EVERYTHING !

And if you can't make money on MBS anymore......because everyone has to's a no-brainer now, isn't it ?

And soon enough......the Fed will be buying this shit asset as well as MBS's.

Fucking hang these bankers now !!!

MonsterBox's picture

maybe.   more likely the usual "Never let a crisis go to waste" meme

cynicalskeptic's picture

You're missing the larger picture.

'The Plan' is a revival of Feudalism - where the masses are serfs serving their 'betters', their lords and masters.  All the freedoms hard won since the Magna Carta are being reversed as peopel are loaded with debt and put into defacto indentured servitude.  

Even if earning 6 figures you're screwed - expected to work 60-80 hours a week, don't EVER take all your vacation and even when you do be available 24/7 and be perepared to get laid off at 50 and never again earn what you had been - replaced by a younger cheaper wageslave.

When 'money' no longer represents the stored value of labor, created through the expenditure of time and effort and creation/addition of 'value' but is an ethereal entity that can be created at will by bankers and government, the value of labor and work goes to zero (and is treated that way).   

Seer's picture

I don't buy the "it's the plan" angle so much as it's just the natural sequence of events given the reality of a lack of growth due to insufficient resources (all a foreseeable outcome from a "plan" of grow-or-die [perpetual growth on a finite planet]).

If one is not in total control (pretty hard to do) then one isn't the master, and, therefore, is the slave... (everyone has to serve somebody)

"Even if earning 6 figures you're screwed - expected to work 60-80 hours a week, don't EVER take all your vacation and even when you do be available 24/7 and be perepared to get laid off at 50 and never again earn what you had been - replaced by a younger cheaper wageslave."

Do you realize that the MAJORITY of humans on the planet can't even fathom any of this?  There are 750 million people in India living on $0.50/day: 2/3 of the world's population lives on $3/day or less (my wife grew up in such a place).

WE have the power to declare what is of value.  At any time we can totally up-end TPTB; BUT, know this: the outcome will only ever more closely resemble the norm, what it's like for the majority of humans on the planet (and as we contiued to deplete our stash of resources it can ONLY go in this direction, lest, of course, we have some large-scale die-off [and that doesn't sound like much of a plan either]).

SDShack's picture

Oh, it's THE plan alright. The only thing you have to realize is TPTB meet the textbook definition of a sociopath. Once you understand what a sociopath is, you understand what their plans are. Make no mistake about it. The NWO will be a New Feudal System. That was the sociopath world order throughout history because their very nature demands it. The only exception to this world history is the very brief period of real democracy that is rapidly ending now. History is rhyming. Plan accordingly.

economicmorphine's picture

It's not the plan.  The plan is simply to win the game using whatever tools are at one's disposal.  I imagine the bankers are having a good laugh at how incredibly fucking stupid some of you are.  You don't have to go into debt you know.  That's a personal decision.  Right now, there are tens of thousands of homes available from coast to coast for less than the cost of a mid sized sedan.  Here's a thought.  Stop paying top dollar for everything.  Stop trying to one up your neighbor.  PLAY THE  GAME TO WIN and you just might win.  You may win.  You may not.  Either way, it beats the hell out of sitting around whining about how unfair the evil banksters are.  If you think the banksters are evil, stop enriching them.  It's really that fucking simple.

MachoMan's picture

It's more complicated than that, but you've got the vast majority correct...  you can opt out, but the problem is that this is largely "defensive" in nature and you just end up in a mode of maintaining...  the ability to compete and take away their spoils through business endeavors is largely an impossible avenue.

akarc's picture

"When are we just going to drag these motherfuckers out onto the streets and just hang them by their nuts from the power lines?"

We won't.

Bangin7GramRocks's picture

Never! It didn't happen in the 30's and it won't happen now. And don't expect to see bankers in tattered suits begging for change either. They won and they have the resources to escape with all the money. Fucking assholes!

Seer's picture

Escape to where?

No, the majority (most likely ignorant of how the real world works) are just as vulnerable: really, their "wealth" is determined by otherse accepting what they have to "offer"- this can/will only last until the tide turns, and, the tide ALWAYS turns.

El Vaquero's picture

Actually, in the '30s, there were several instances where a bank would forclose on farms, and the locals would all show up to the auction armed, keep out any serious bidders, bid something low, like $5, and then give the deed back to the original farmer. 

Bangin7GramRocks's picture

But the monied class still escaped the depression with more assets than before. Your shotguns won't be able to resist Goldman's 60,000 man private Blackwater army equipped with tanks, artillery and drones.

El Vaquero's picture

If a bunch of guys living in caves can stand up to more than what Goldman could throw at us, what makes you think that 60,000 is enough to control 315,000,000 people?  Even one percent of the US populace is a huge fucking army.  And it takes real, tangible resources to keep an army going.  Where are they going to get those resources from? 

devo's picture

Never, because we'll whine about how someone else should do it, on ZH.

sgt_doom's picture

The best comment is by Incubus today!

As anyone who has read my comments over the years knows, I have always attacked the Blackstone Group at every opportunity, be it their closing of refineries to drive up the price of oil, their involvement in 9/11 attacks from following the money trail, and the cached data transmission emanating from the WTC on 9/11/01, and various and assorted perfidy (like they way the Spanish-language radio stations they owned, organized several national immigration marches, which successfully knocked warrantless wiretapping off the front pages on those two occasions), etc., etc., etc.

The Blackstone Group, founded by David Rockefeller's lackey, Peter G. Peterson and co-founder, Stephen Schwartzman (a Yale Skull & Bones guy, picked for that fraternity by upperclassman, George W. Bush).

This private equity/leveraged buyout firm was begun with seed money from Rockefeller, and not too many years afterwards, Peterson and Rockefeller would create the Peterson Institute (or Peterson Institute for International Economics) whose agenda was:  the ending of Medicare/Medicaid, Social Security, the offshoring of as many American jobs as possible, and bringing America into complete adherence with the WTO's Financial Services Agreement (which that Trans-Pacific Partnership will most certainly do).

The world's telecoms are pretty much, and most conveniently, owned by the top private equity firms, Blackstone Group among them.

The Blackstone Group was the mortgage holder of record of Building 7 of the World Trade Center when it was attacked, and the Blackstone Group would later be named the coordinator of the captive insurance fund, awarded by FEMA under the Bush Administration, ostensibly to payout to the families of the victims of the WTC attacks on 9/11 (with super-shyster, Feinberg the attorney overseer --- isn't he always?).  The Blackstone Group was also the broker of record of, at that time, the fastest and largest RE deal in NYC history, the deal between NY Port Authority and the Silverstein Properties and Westfield Enterprises, the exchange of the World Trade Center between those entities.

The Blackstone Group structured that captive insurance fund like a hedge fund, and at $1 billion, who knows how much they actually earned from it?

Peterson is the ultimate douchebagger, and he established an outfit pushing austerity, within the so-called nonpartisan New America Foundation (financed by the Peterson Foundation and Pew Charitible Trusts, of course).

The head of the New America Foundation is (assuming he still is, that is) Steve Coll, who wrote a book on ExxonMobil but somehow couldn't name who the majority owner is (can you spell Rockefeller?).

Just google my signon name and Blackstone Group, and you'll find out other interesting tidbits about them.