By Felix Salmon | Axios
There’s a lot of risk in real estate. Just owning it, of course, is the main risk. It can work out well for people lucky enough to be able to put a small down payment on a house before it soars in value.
Why it matters: Real estate can also cause a global financial crisis, should millions of Americans find themselves underwater on their mortgages.
Driving the news: Wall Street is increasingly looking for ways to take on these risks. Companies like Point will buy an equity stake in your home, while Zillow and Opendoor will take on the risk of finding a buyer, giving you an up-front cash payment for your house, no staging or repainting necessary. Often, the houses they buy end up getting rented out by giant Wall Street landlords, rather than being sold to individuals.
