Loading...
You are here:  Home  >  Real Estate  >  Current Article

Companies on Wall Street are increasingly taking on real estate risks

Posted by   /  May 20, 2019  /  No Comments

    Print       Email

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.

READ ON:

    Print       Email
  • Published: 1 month ago on May 20, 2019
  • Posted by:
  • Last Modified: May 20, 2019 @ 10:34 am
  • Filed Under: Real Estate
  • Tagged With:

Leave a Reply

You might also like...

Avondale buying Gila River land after BLM deal, could open large swaths of land for potential development

Read More →