[quote=briansd1]
In order to rent out the properties, you need agents to screen the tenants and manage the properties. The agents need to get paid and they don’t really care about damage since it doesn’t come out of their pockets. Then you need a maintenance crew to repair things. Then you need employees and software systems to keep track of the portfolio. All to make a few hundred bucks on each condo…. I’m afraid that the profits will get eaten up quickly.
Not sure if the investment funds will profit on residential properties. I think that market it best left to local operators.
[/quote]
Its not as if principals who put these funds together need to make profits.
They really only need to put funds together and then find other dumb individual/institutional investors to whom they will sell shares of these “can’t lose” funds. They (principals) will get paid to put these funds together and every time the next investor buys shares from them and also for running these funds.
If there are no profits here, it is really the problem of the next party who will own the paper. As long as there is demand for such “investments” fueled by articles in the media, someone on Wall Street will create this product…