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Old 06-03-2013, 11:35 AM
 
2,729 posts, read 5,200,367 times
Reputation: 2357

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Quote:
Originally Posted by chi_tino View Post
The residential real estate market is far, far too large for any fund (or even group of funds) to control. These funds have put a few billion dollars to work. The US housing market is approximately $17 trillion in size. It's simple math to see that they may, at some point, own as much as one-tenth of one percent of the market. It's literally a drop in a bucket.

If you are buying a fund, you are legally required to read the prospectus, which explains every fee you will be charged. Every investor in that fund is there willingly, so there should be absolutely zero complaining about the fees or other restrictions (for example, how long your money is locked up).

If the fees are too large, someone else will create a fund with lower fees and steal their business (see: the history of S&P 500 index ETFs). It's truly a free market.

I retired thanks to those fees, so I can't complain too loudly, either.
Good for you but most so called fund managers can't even beat market index AFTER their fee. I have seen staggering statistics on that. Only suckers fall for them.
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Old 06-03-2013, 12:18 PM
 
5,687 posts, read 7,177,253 times
Reputation: 4327
Quote:
Originally Posted by MeInDenudinFL View Post
Good for you but most so called fund managers can't even beat market index AFTER their fee. I have seen staggering statistics on that. Only suckers fall for them.
Yeah, but they're WEALTHY suckers!
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Old 06-03-2013, 01:04 PM
 
3,826 posts, read 5,802,401 times
Reputation: 2401
As someone who live in HOA community, I have investors because good 90% of them are not paying their HOA on time. Investors knew about such a high HOA fees, and purchased these properties and now are forcing our HOA management company to spend time, mone and resources for all this lien things.

As someone who is looking to buy a house, I don't consider investors houses. Most of these houses were purchased after being vacant for years -> mold issues because we are in FL and no AC is not a good thing for a house. While investors are trying to rent and have their properties vacant they don't run AC either. I saw few houses in "move in ready condition", all they did were covering major issues.
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