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scottjg | 4 years ago

given interest rates are at a historic low, i would be shocked if they are using actual cash to buy these houses. presumably they are buying with mortgages?

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vmception|4 years ago

or the corporate entity has borrowed funds at the super low interest rates for general purposes which it uses for this purpose

cursory google search shows $1.1bn in bonds issued that way

as well as a more recent $450bn which is actually collateralized by the properties they've already bought, already in their portfolio

not even 1:1 leverage, and a far cry from the 46:1 leverage seen on the institutional side in 2008

https://aimgroup.com/2019/09/05/zillow-issues-1-1b-in-debt-a...

https://www.bloomberg.com/news/articles/2021-08-03/zillow-45...