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- In Lansing along with many of the South Side communities, there is a company out of Tinley Park that is buying 40 homes a month. They pull the permits, rehab the homes from top to bottom, bringing them up to 2013 codes as required by the Village of Lansing. Then they turn them into single family rental units. They are now paying around $50K for three bedroom, 1.5 to 2 bath homes. Their own "in house" subcontractors do approximately $25K to $40K. of work into the houses, then either 'sell' them to their 'pre-qualified buyers' on a rent to own type of contract or rent them out. These are not 20% down buyers, but government assisted buyers. Along with the rent to own contracts, this company also rents their homes out to pre-qualified government assisted renters. Additionally, after the company has amassed bundles of homes, then they bundle the homes and "sell" them to Real Estate Investment Trusts (REITs). Does any of this sound familiar? They have already done this in Arizona. Yes, construction/investment companies may be stimulating the market at the immediate time, and we sure need positive movement in the local real estate markets, but within a few years we could be right back where we started due to government programs that allowed mortgage companies to allow unqualified buyers to purchase real estate and then other government regulations that allowed investment firms to bundle the loans and sell them off. Haven't we learned anything? They will be making a "quick buck" at the eventual expense of homeowners in our communities. The Village of Lansing is already aware of the work being done by this company. It is Federally mandated, and there is not much anyone can do about it. So when building departments talk about trying to manage landlords to keep out the undesirables out of these communities, just be aware of what is happening right now and figure what may happen in the next year or two. This is where the cheap homes are now, and in years to come, they will remain cheap because of this company's philosophy. Ask yourself how a REIT is San Francisco, Seattle, New York, etc. is going to handle problems from tenants, problems in the home, or problems in the community. They are only concerned about the return on investment and not about the quality of life we may or may not have in the future.
- February 11, 2013 4:51 pm on Cal City, Lansing considering alterations to landlord registration programs
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