Real Estate Investing Market- How Wall Street Control On The House Price

Real Estate Investing Market- How Wall Street Control On The House Price

For centuries, people have made money in real estate. Corporations owning real estate is not a new phenomenon. To truly comprehend Wall Street's impact on the housing market, you must first understand the different real estate types.

There are different kinds of properties in the real estate market. We have an office leased to businesses so their employees can work there. In addition, we have industrial properties such as warehouses and distribution centers. There are also multifamily apartment complexes. Corporations and large investors have historically dominated these various types of real estate. However, there was one type of real estate that these large investors tended to avoid. Houses with only one family. Most people envision this type of property when they hear the word house. A single-family home with one owner, no shared walls, and its own land. One primary reason is that large investors have historically avoided investing in single-family homes. It has to do with the concept of scalability. Please allow me to explain. The majority of prominent real estate investors are organized in a structure known as a fund. This means that these investment firms pool funds from a variety of sources. Insurance companies, university endowments, pension funds, governments, and wealthy individuals. That person goes out and buys real estate with the intention of profiting. The profit is then divided among the individuals and groups who contributed the funds. As well as the investment firm that did the work of locating and purchasing the real estate. Every dollar of profit the fund makes may go to the people who put the money up, with the remaining 30% going to the fund's managers. This profit-sharing arrangement encourages the fund to grow as large as possible, even if it means lower investment returns.

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00:00 Introduction
00:46 Real Estate Investing Market- How Wall Street Control On The House Price
01:55 fund investors
02:41 exsample of 2 fund
05:40 wall street investing in single family home
07:58 reat astate area
10:15 us bonds
11:28 cap rate