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Some Links

September 11th, 2012 at 06:09 am

I was catching up on my e-mail the other day, and lots of interesting articles in my inbox.

Big-money funds buy foreclosures -- to rent


"No condos wanted, and no "McMansions", either. The objective: Bank-owned "family'' homes, with, say, 1,800 square feet and 3 bedrooms, in stable neighborhoods where prices are expected to rise.

That's the sweet spot for Carrington Capital Management LLC, a private equity fund with Orange County ties in an increasingly competitive field -- big-money players going after foreclosures."

I share because I have kind of watched in awe as the flippers have moved back in (& have been surprisingly successful). Most the houses in our neighborhood have been foreclosed, bought by flippers, and then bought by investors to rent out. I have also mentioned that most buyers are not even from the area; many not from the U.S.

So, what has changed??? The market almost feels more speculative now than it did in 2005. {I know a few individuals buying homes, but no one who is buying anything within the realm of reason, or with more than a 3% down payment. ???? So, what has changed?}


An Ethics Test Your Adviser Might Not Pass


New research suggests most assets are managed by firms with regulatory violations or conflicts of interest.

Man, I see this *so much* in my line of work. So, I didn't find this surprising in the least.

& ha, my favorite investment advisor, Merrill Lynch, made the list for felony, misdemeanor, SEC violation - they got a giant red x in every single category. Surprise surprise!!

Even Vanguard had commodities trade violations (on the red list!)

Critics also say that what Diligence perceives as potential conflicts are commonly accepted practices throughout the industry -- for example, the hybrid model of firms that both sell products and provide advice

But that's the problem - it's a HUGE conflict of interest! Just because it is a commonly accepted practice doesn't negate that.

P.S. I am skeptical how squeaky clean all those green companies really are - yes. Wink I've seen it over and over with small asset management firms. A lot of them are squeaky clean until they run off with your life savings. So, you just have to be careful. Take this list for what it's worth - a list of companies that have already been caught red handed. Others yet to be caught.

2 Responses to “Some Links”

  1. Joan.of.the.Arch Says:

    I skimmed through your first link. I saw an article this morning about a big company buying up Florida foreclosures en masse. Wouldn't it be horrible if large quantities of the US rental housing stock wound up owned by big business? Can you imagine getting an included kitchen appliance fixed if it had to go through customer service, then regional intake desk, then keyed into the normed evaluative prioritization schemata, then okayed by a supervisor, then emailed to the local rent-a-super business, which then called the part-time, week days only employee who must come verify in person that there is a refrigerator problem, and who then phones it in to authorize a repair or replacement, and then..... Oh my gosh. You might be able to cook dinner again in a month or two.

    Shocking to hear about speculation as high as 2005! Insanity.

  2. Looking Forward Says:

    Both links were interesting.
    No real suprises with #2. Rolleyes
    Thanks for posting them. Smile

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