Snowytrail

Downey's Aversion to Home Equity, Construction Lending: Key to Its Survival

Kurt, you have it exactly right. Downey's current "business model", if you can call it that, is that of landlord for approx 15,000 tenants with below market month to month leases. The tenants have little to no equity and in many cases put nothing down. The tenants can stop paying for 4-5 months before they can be evicted and when they do leave, the owner(Downey) has great difficulty reselling the lower value assets and will now have to pay for any maintenance and property taxes while holding the REO. Not a business I want to invest in.