Sell? Ha! They buy houses then rent them out for significantly more than they pay in mortgage (or than what the mortgage cost would be if they didn’t buy in cash). There’s no financial incentive for them to sell houses for a one-time payment when they’ll just be a lot of free money indefinitely.
If the loan costs less than what they could make on some other investment. They’ll have mortgages.
But if the loan with a dozen or more homes all together as collateral gives a better rate then they’ll pay cash and do that while using the income to pay that loan back.
They leverage tons of different equity to have higher working capital. More money means more profits.
Sell? Ha! They buy houses then rent them out for significantly more than they pay in mortgage (or than what the mortgage cost would be if they didn’t buy in cash). There’s no financial incentive for them to sell houses for a one-time payment when they’ll just be a lot of free money indefinitely.
If the loan costs less than what they could make on some other investment. They’ll have mortgages.
But if the loan with a dozen or more homes all together as collateral gives a better rate then they’ll pay cash and do that while using the income to pay that loan back.
They leverage tons of different equity to have higher working capital. More money means more profits.