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this is an interesting distinction but I don't know enough to totally wrap my head around it. Can you expand a bit on how a home would have no mortgage but that

this is an interesting distinction but I don't know enough to totally wrap my head around it. Can you expand a bit on how a home would have no mortgage but that same homeowner would?

kelipso 3y ago
One person owning multiple homes..
- pavlov 3y ago
  Or a company owning hundreds of homes.
hanman999 3y ago
A home owner might own multiple homes
- deleted 3y ago
  [deleted]
Pigalowda 3y ago
Blackrock and other funds buy thousands of homes and rent them out. Those are mortgage free homes.
- deleted 3y ago
  [deleted]
- hondo77 3y ago
  Why would they pay cash instead of getting big loans for multiple properties at a favorable rate?
  - k1t 3y ago
    You can still finance the properties with debt, without it being a mortgage. For example, taking out a single large loan, then using that to purchase many properties with "cash".
- c22 3y ago
  You're probably thinking of Blackstone which spunoff from Blackrock in the 1980s. Further reading: https://www.blackrock.com/us/individual/insights/buying-houses-facts https://www.blackrock.com/us/individual/insights/buying-hous... https://www.blackstone.com/housing/our-track-record-in-housing/ https://www.blackstone.com/housing/our-track-record-in-housi... https://www.helpadvisor.com/retirement/blackrock-vs-the-blackstone-group-where-should-you-invest https://www.helpadvisor.com/retirement/blackrock-vs-the-blac... https://fintel.io/news/blackrock-now-owns-490-of-blackstone-bx-406 https://fintel.io/news/blackrock-now-owns-490-of-blackstone-...
  - Pigalowda 3y ago
    If it’s such an infinitesimally small portion then why defend the position instead of just shedding the assets? I don’t trust their whitewashing at all. Blackfund should sell but they won’t until they’ve extracted the blood they think they deserve.
  - r00fus 3y ago
    A distinction without a difference - they're both in the same rent-seeking model.
    - c22 3y ago
      I guess, except Blackrock literally does not buy houses whereas Blackstone owns "0.03% of single-family homes in the US" and rents them out. A distinction that seems entirely relevant to the claim "Blackrock [...] buy thousands of homes and rent them out."
      - r00fus 3y ago
        This article claims otherwise [1] "BlackRock, Vanguard, and State Street have notably been making substantial investments in single-family homes across America. Their housing acquisitions are primarily conducted through real estate investment trusts (REITs), including home-rental companies. BlackRock, for example, is heavily invested in Invitation Homes. A company that owns and operates over 80,000 rental homes in the U.S. " [1] https://businessandfinances.com/2023/09/investment-giants-buying-americas-homes-blackrock-vanguard-state-street/ https://businessandfinances.com/2023/09/investment-giants-bu...
IKantRead 3y ago
I have a few friends who had major liquidity events happen to them and they each own 3-5 homes as investment homes. I believe these properties were paid full in full and in cash, so no mortgage. This small proportion of my friends is mortgage free, but they own multiple houses so a fairly large proportion of my friends houses are mortgage free.

this is an interesting distinction but I don't know enough to totally wrap my head around it. Can you expand a bit on how a home would have no mortgage but that same homeowner would?

kelipso 3y ago

One person owning multiple homes..

pavlov 3y ago
Or a company owning hundreds of homes.

hanman999 3y ago

A home owner might own multiple homes

deleted 3y ago
[deleted]

Pigalowda 3y ago

Blackrock and other funds buy thousands of homes and rent them out. Those are mortgage free homes.

deleted 3y ago
[deleted]
hondo77 3y ago
Why would they pay cash instead of getting big loans for multiple properties at a favorable rate?
- k1t 3y ago
  You can still finance the properties with debt, without it being a mortgage. For example, taking out a single large loan, then using that to purchase many properties with "cash".
c22 3y ago
You're probably thinking of Blackstone which spunoff from Blackrock in the 1980s. Further reading: https://www.blackrock.com/us/individual/insights/buying-houses-facts https://www.blackrock.com/us/individual/insights/buying-hous... https://www.blackstone.com/housing/our-track-record-in-housing/ https://www.blackstone.com/housing/our-track-record-in-housi... https://www.helpadvisor.com/retirement/blackrock-vs-the-blackstone-group-where-should-you-invest https://www.helpadvisor.com/retirement/blackrock-vs-the-blac... https://fintel.io/news/blackrock-now-owns-490-of-blackstone-bx-406 https://fintel.io/news/blackrock-now-owns-490-of-blackstone-...
- Pigalowda 3y ago
  If it’s such an infinitesimally small portion then why defend the position instead of just shedding the assets? I don’t trust their whitewashing at all. Blackfund should sell but they won’t until they’ve extracted the blood they think they deserve.
- r00fus 3y ago
  A distinction without a difference - they're both in the same rent-seeking model.
  - c22 3y ago
    I guess, except Blackrock literally does not buy houses whereas Blackstone owns "0.03% of single-family homes in the US" and rents them out. A distinction that seems entirely relevant to the claim "Blackrock [...] buy thousands of homes and rent them out."
    - r00fus 3y ago
      This article claims otherwise [1] "BlackRock, Vanguard, and State Street have notably been making substantial investments in single-family homes across America. Their housing acquisitions are primarily conducted through real estate investment trusts (REITs), including home-rental companies. BlackRock, for example, is heavily invested in Invitation Homes. A company that owns and operates over 80,000 rental homes in the U.S. " [1] https://businessandfinances.com/2023/09/investment-giants-buying-americas-homes-blackrock-vanguard-state-street/ https://businessandfinances.com/2023/09/investment-giants-bu...

IKantRead 3y ago

I have a few friends who had major liquidity events happen to them and they each own 3-5 homes as investment homes. I believe these properties were paid full in full and in cash, so no mortgage. This small proportion of my friends is mortgage free, but they own multiple houses so a fairly large proportion of my friends houses are mortgage free.