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WSHazel

(692 posts)

39. THEY are not the ones messing up the housing market

Tue Feb 24, 2026, 02:35 PM

Feb 24

Trump‘s 2017 tax bill effectively eliminated the tax deduction for mortgage interest for individual homeowners by increasing the standard deduction. Investor owners still have a tax deduction for mortgage interest, because it’s a business expense. As a result, an investor owner has advantage on buying a house over a resident homeowner. This is why private equity and a lot of mom and Pop investors own so many homes.

The government should not give investors an advantage over residents in the housing market.

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Farmer-Rick

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Highlight:

Kraft Heinz cut expenses too deeply under private equity management, its new CEO says [View all] BumRushDaShow Feb 24 OP

That is not how private equity works WSHazel Feb 24 #1

I have watched "private equity" groups Miguelito Loveless Feb 24 #4

Yep, they buy the companies with loans under the companies names. Loans that pay the "Private Equity" owners. Then LiberalArkie Feb 24 #8

one of the things i learned is the loans are often variable rate loans. uncle ray Feb 24 #11

Exactly Miguelito Loveless Feb 24 #25

The investment you described would lose money for pe firm WSHazel Feb 24 #35

I have seen it happen many times Miguelito Loveless Feb 24 #38

Companies are too expensive now WSHazel Feb 24 #40

We get offers monthly, so Miguelito Loveless Feb 24 #41

You probably are getting inbound calls from analysts WSHazel Feb 24 #47

the "good" PE does is akin to an abusive husband buying his wife flowers. uncle ray Feb 24 #7

"That is not how private equity works" BumRushDaShow Feb 24 #9

That was a thorough documentation Farmer-Rick Feb 24 #20

Wikipedia actually has some other examples that fell on the sword (or are in process of such) of PE firms BumRushDaShow Feb 24 #27

Good info Farmer-Rick Feb 24 #32

By this logic, no one should provide capital to troubled companies WSHazel Feb 24 #36

It needs to be regulated BumRushDaShow Feb 24 #42

And how does the current system help anyone? Farmer-Rick Feb 25 #48

How does a PE firm make money on a bankruptcy? WSHazel Feb 25 #50

Who would you rather have owning the hospitals? WSHazel Feb 24 #37

NON-PROFITS BumRushDaShow Feb 24 #45

Yes, yes, yes Farmer-Rick Feb 25 #49

That is exactly how private equity firms work. Mr. Mustard 2023 Feb 24 #13

The Private Equity Firms popsdenver Feb 24 #21

Well they are fucking up the housing market for both renters and would be owners. LuvLoogie Feb 24 #18

THEY are not the ones messing up the housing market WSHazel Feb 24 #39

Yes, it is Cirsium Feb 24 #24

OP was conflaiting Leveraged Buyouts with Venture Capital IbogaProject Feb 24 #33

Have you taken a look at all the medical practices pef's have bought, niyad Feb 24 #34

The term "buzz-word world" is so perfect to describe the madness in both private and the business world. walkingman Feb 24 #2

Weird Al Yankovic wrote a song about it (one of my recent faves from him) BumRushDaShow Feb 24 #10

I'm sending that to my spouse progressoid Feb 24 #19

I have had to write up a many justifications for stuff BumRushDaShow Feb 24 #28

She has to review progressoid Feb 24 #30

Serious CSNY/Dylan vibes BaronChocula Feb 24 #44

He excels at doing song parodies BumRushDaShow Feb 24 #46

Any company that is bought by Miguelito Loveless Feb 24 #3

I have, for some time, popsdenver Feb 24 #22

In other news lonely bird Feb 24 #5

Does that mean they're going to rehire all the employees in Pittsburgh that got laid off? FakeNoose Feb 24 #6

Some quick googling showed the company started putting a lot of emphasis on AI a couple of highplainsdem Feb 24 #12

It's ALWAYS private equity that fucks things up! sakabatou Feb 24 #14

I had hot dogs and Mac & Cheese growing up. Jacson6 Feb 24 #15

When someone says private equity, I think of Romney. Zackzzzz Feb 24 #16

This is what private equity does xuplate Feb 24 #17

"The whole end goal of "private equity" is to suck the life out of the companies they buy, discard what is left..." C Moon Feb 24 #23

Yup, private equity is a virus. Initech Feb 24 #31

So in order to save the company they need to increase costs bucolic_frolic Feb 24 #26

The other problem in this case, that is unspoken BumRushDaShow Feb 24 #29

Wait; you mean those private equity frat boys don't know how to run businesses? I'm shocked! Aristus Feb 24 #43