This is a thing. I forget exactly what it's called. An individual can act in the role of a bank. You buy a piece of property and "sell" the deed. The people who can't get loans through banks can instead come to you and buy your deed. They mortgage it from you as if you were a bank. They do a down payment and then pay off the deed over time. You don't actually give over the deed until the entire thing is paid off. Here's the fun part, you charge them a higher interest rate on it because they can't get approved through normal channels. They might have bad or no credit. Therefore they end up paying you more for a property they're essentially renting. People in a precarious financial situation like that are likely to not be able to pay at some point in the 10-20 years they're on the hook for buying your deed. If they don't pay you can just evict them and do it all over again. You're not a landlord in that you don't have to pay for repairs. It's up to the person to maintain it.
So imagine a poor person after 2008 finds one of these deals and begins a 20 year journey to pay off a property they don't actually own. Then covid happens in 2020 and they can't pay. All that time lost and they lose the property too. The owner now can just sell it for a premium to Blackrock.
if being a landlord in those conditions such a burden I would simply let the tenants manage the property themselves
This is a thing. I forget exactly what it's called. An individual can act in the role of a bank. You buy a piece of property and "sell" the deed. The people who can't get loans through banks can instead come to you and buy your deed. They mortgage it from you as if you were a bank. They do a down payment and then pay off the deed over time. You don't actually give over the deed until the entire thing is paid off. Here's the fun part, you charge them a higher interest rate on it because they can't get approved through normal channels. They might have bad or no credit. Therefore they end up paying you more for a property they're essentially renting. People in a precarious financial situation like that are likely to not be able to pay at some point in the 10-20 years they're on the hook for buying your deed. If they don't pay you can just evict them and do it all over again. You're not a landlord in that you don't have to pay for repairs. It's up to the person to maintain it.
So imagine a poor person after 2008 finds one of these deals and begins a 20 year journey to pay off a property they don't actually own. Then covid happens in 2020 and they can't pay. All that time lost and they lose the property too. The owner now can just sell it for a premium to Blackrock.
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