Tag Archives: rent

U.S./Canadian Housing Hooliganism: Drug lords, foreign speculators & LLC monopolizing!

05 June 2022  (14:49-UTC-07 Tango 06) 15 Khordad 1401/05 Dhu l-Qa’da 1443/07 Bing-Wu 4720

Traditional home buyers, families wanting to have a place of their own, have been overwhelmingly outbid by Limited Liability Companies (LLC), speculators and even criminal money launderers, for at least a decade. It is these profit seeking/money laundering operations that have driven-up housing costs, not traditional market forces. It seems that local, state and federal politicians are fine with that.  Especially local politicians because a top source of tax & fee revenues for local governments is real estate.

U.S. tax schemes benefit LLCs:

Traditional investors, like Warren Buffet, do not like the idea of putting their money into real estate, yet there is a new game in town involving LLCs that are buying-up homes across the U.S., turning those homes into high dollar rentals:

A 05JUN2022 report lists more than 55 real estate transactions involving LLCs in Northwest Arkansas!

In California, the City of Berkeley itself is using tax dollars to get into to the rental game by buying-up properties, under the guise of lowering housing costs!

In Pennsylvania, for the week of 05JUN2022, more than 20 real estate transaction in the Pittsburgh Eastern Suburbs involved LLCs!

At least 7 real estate transactions involving LLCs in the Boise metro area, Idaho, were reported on 04JUN2022!

In Nebraska, a 04JUN2022 report revealed that multi-million dollar LLC real estate purchases caused property values to double for Lincoln County, in just one day!

On 01JUN2022, the U. S. President Joseph R. Biden Junior began an “initiative” that will likely drive up the cost of building new homes!

In May 2022, it was reported that Canada’s government is so concerned over foreign speculation driving-up prices in local real estate markets that a ban on home purchases by foreigners is being considered!

Iredell County, North Carolina, reported that for 22-26MAY2022 the top three real estate transactions involved LLCs!

Single family homes in Massachusetts are being bought-up by ‘anonymous’ Limited Liability Companies, more than 6-thousand homes in 2021: “It’s becoming more prevalent in Massachusetts and everywhere. More and more rental properties are coming to be owned not by individuals, but by companies, by business entities.”-Adam Travis, Harvard doctoral candidate studying rental housing and the private market

U.S. Home Owners Associations (HOA), and traditional homeowners, want to ban real estate speculators (‘investors’) from buying housing: “It feels like we are being preyed upon.”-Deborah Smith-Gregory, homeowner in New Jersey

Canada’s The Globe and Mail blames rising real estate interest rates on speculation and investing.

September 2020, investment analyst gives advice to foreigners on how to buy U.S. real estate, it’s all about money:

Associated Press, May 2022: Drug gangs from Latin America, Europe and Asia take advantage of Oregon’s lax drug laws and buy-up properties to create massive illegal drug-farm operations!

In the drugged out state of Oregon (don’t deny it you Beaver Staters) people expressed shock that there was an illegal drug store in their neighborhood, 12 people arrested! It was part of a massive Mexican drug lord operation which also included money laundering by buying up properties with cashMarch 2022, KPTV report about the multi-state (California, Nevada, Oregon, Washington) drug bust that also included real estate:

In November 2021, Oregon State Police warned state politicians that drug dealers from south of the border had set-up numerous illegal marijuana farms using illegal immigrants as the workers!  Migrant workers describe the drug dealers as operating like an army!

It is not just drug lords setting-up shop to manufacture and distribute drugs, but according to a 2021 Global Financial Integrity survey, in the past five years U.S. real estate has become the number one way for drug lords, and other international criminals, to ‘launder’ their dirty money!  According to the authors of the survey, this massive international money laundering scheme is being facilitated by U.S. attorneys, real estate agents, investment advisers, and employees of U.S. financial institutions who know full-well what is transpiring.

Using U.S. real estate is so prolific that a company called CRES Real Estate Errors and Omissions Insurance has published a guide explaining how to identify and report real estate transactions that are possibly foreign money laundering schemes.

It is not just the U.S. that is suffering Housing Hooliganism, Canada news outlet Global News shows you the detailed global money laundering web created by organized criminals from Communist China, who are snatching up homes in British Colombia:

Miami Herald, October 2021: Money laundering remains prevalent through U.S. real estate

United States Department of Justice, April 2021: Court Orders Forfeiture of Real Estate Purchased by Mexican Cartel Leader

Global Witness, 2020: How anonymous companies are used “to stash cash, launder money, and buy-up homes in a tight market.”

May 2019, Canada’s state funded CBC News reveals how money laundering is driving up housing costs:

This is not new; from Housing Wire, 2016: Texas real estate agent takes down Mexican drug gang

Wall Street Journal, July 2016: The U.S. government adds new counties and cities to its list of real estate money laundering hot spots:

2014: The top buyers of U.S. real estate are from China, followed by British empire (Commonwealth of Nations) members!

From the Baltimore Sun, February 1999: When a drug lord is your landlord 

U.S. Wildfires, 2022: BLAME HOUSING DEVELOPMENT SPECULATION GAME!

U.S. Housing Crisis, 2021: IDAHO’s HOUSING COSTS “LITERALLY MATHEMATICALLY IMPOSSIBLE”! KILLING IDAHO’S ECONOMY! GET READY FOR THE CRASH-N-BURN!

What Housing Market Recovery? 2015: IDAHO HOUSING MARKET LIES!

“I KNOW…A MANAGER…WHO SAID THEY LOSE $200-THOUSAND A YEAR!”

U.S. Housing Implosion, 2014: “EVERYBODY WANTS A BETTER OUTCOME, EVERYBODY BUT THE LANDLORDS.”

Government Incompetence, 2011: CONSTRUCTION COMPANIES SAY IDAHO CITY DRIVING DOWN THE ECONOMY WITH THEIR OUTRAGEOUS CONSTRUCTION FEES. IS City of POCATELLO VIOLATING STATE LAW?

“market conditions” blamed on population Death Spiral! : U.S. Industrial/Mining/Logistics layoffs, January 2018

Incomplete list of U.S. Mining/Industrial/Logistics job loss/shutdown announcements made in January 2018.

Trulia reports that overall housing rents across the United States jumped an average of 19.6% since the end of 2012, even though the majority of working class people saw no increase in pay.

Alabama: Warren Buffet owned clothing maker Fruit of the Loom laid off 72 people at its Russell Brand’s factory in Alexander City.  Local news media reported that ever since Warren Buffet bought the operation (in 2006) there have been continuous layoffs, at one time there were more than 1-thousand people working at the factory, now there’s less than 5-hundred.

 California: Menasha Packaging shutting down its Bloomington location, 25 jobs gone in February.  Zodiac Pool Systems issued a shutdown WARN for its Vista location, 67 jobs gone in October.  Brinderson-Tesoro Martinez Refinery eliminating 94 jobs on March.  Brinderson also eliminating 256 jobs in Wilmington!

Colorado:  Boulder based Star Wars/robot toy maker Sphero eliminating 45 jobs, and shifting to educational products, due to lack of holiday sales of its robot toys.

Connecticut: Southport based Sturm-Ruger laid off 50 gun-making employees at undisclosed locations across the U.S.  It was blamed on a combination of low sales and “employee performance”.

Florida: Texas based ‘outdoor products’ maker Plano Synergy eliminating 104 jobs in Tarpon Springs, by the end of May!

Idaho: In Lewiston, Clearwater Paper announced it will layoff 1-hundred people in May, due to “market conditions”!

Illinois: The Plastics Group issued a shutdown WARN for its factory in Willowbrook, 105 jobs gone starting in March!   Box maker Pactiv issued a shutdown WARN for its Bolingbrook factory, 101 jobs gone in March!  What automotive industry recovery? Germany based Daimler issued a shutdown WARN for its truck parts distribution center in Chicago, 52 jobs gone by the end of March.

Indiana: What automotive industry recovery?  Truck maker Autocar suddenly laid off 70 employees due to crashing sales.   MV Transportation issued a shutdown WARN, 142 jobs gone by the end of March!  Trump’s buddy Carrier continues killing jobs, this time 215!  Supposedly it’s the last round of layoffs connected to Carrier moving some production to Mexico.

Iowa: In Nevada, DuPont eliminating 28 jobs in March.  Germany based Siemens eliminating 202 jobs in Fort Madison, by the end of March!

Kentucky: Kentucky Electric Steel shutting down its factory in Ashland, 113 jobs gone in March!

Louisiana: State Department of Revenue accusing three companies of tax evasion; Elliott Roofing Services, Antunez Painting and Extreme Cars and Trucks.  The companies allegedly avoided payroll taxes by calling their in-house employees ‘independent contractors’.  Nuclear power plant pipe maker CB&I eliminating 163 jobs due to Entergy’s plan to eliminate 123 jobs at the Riverbend nuclear power plant!

Minnesota: Sweden based home appliance maker Electrolux shutting down its factory in Saint Cloud, about 9-hundred jobs gone in 2019, due to consolidation ops!

Mississippi: What construction industry recovery?  Nucor-Kirby Building Systems eliminating 1-hundred jobs due to consolidation of some production to Tennessee!

Missouri: What automotive industry recovery?  Harley Davidson shutting down its factory in Kansas City, 8-hundred jobs gone in Spring 2019!

Nevada: What construction industry recovery? Finished steel products maker Nucor shutting down its American Buildings factory, at least 1-hundred jobs lost to operations in Utah!

New Jersey: Japan owner shipping company MOL eliminating 32 jobs in Woodbridge.  What automotive industry recovery?  Japan owned Toyota-NYK eliminating 75 jobs in Secaucus.

New York:  General Electric (GE) laid off 130 people as part of the larger plan to kill 12-thousand jobs globally!

North Carolina: After getting $475-thousand local tax dollars in incentives Absolute Plastics issued a layoff WARN eliminating 1-hundred of its 150 jobs due to crashing sales!  PRC Industries issued a layoff WARN for its Spruce Pine location, 1-hundred jobs gone by March!  In Indian Trail, RSC Chemical Solutions eliminating 65 jobs between March and the end of June.

Ohio:  Deutschland (Germany) based delivery service DHL outsourcing 229 jobs in Lima, by March!  Fremont Plastic Products shutting down its factory, 185 jobs gone starting in March! What automotive industry recovery?  Chrysler-Fiat-Jeep parts maker Toledo Molding & Die shutting down its North Toledo factory, 120 jobs gone by Spring 2019, due to the shutdown of Jeep Wrangler production!  Korea based Hyundai-Mobis eliminating 572 jobs at its Toledo/Lucas factory, between April 2018 and April 2019!

Oklahoma: More layoffs from oil company Chesapeake Energy, in a surprise announcement 4-hundred employees learned they are soon to be jobless!  Company administrators also revealed they’ve sold-off 25% of its oil wells in an attempt to pay-down debt.

Oregon: General Distributors shutting down its ops in Oregon City, 165 jobs gone!

Pennsylvania: MEPCO issued shutdown WARNs for its coal mines in Green County, 370 jobs gone starting in March!  The largest east coast refinery, Philadelphia Energy Solutions, now bankrupt busted due to federal government imposed Renewable Energy Credit (RIN) which cost the refinery $217-million USD in 2017.  Dover Corporation-Pump Solutions Group issued a shutdown WARN for its North Wales ops, 63 jobs gone between April and December.  Denmark based climate control parts maker Danfoss shutting down its factory in Chambersburg, 70 jobs gone right before Xmas 2018!  Johnson & Johnson issued a ‘phase 2’ shutdown WARN, 34 jobs gone in March.  Pittsburgh Glass Works issued a shutdown WARN for its Creighton location, 61 jobs gone by the end of June.  John Middleton Company issued a shutdown WARN for its tobacco factory in Limerick, 118 jobs gone in April!  Ryder Integrated Logistics eliminating 136 jobs in February!

Texas: Irving based toilet paper and disposable diaper maker Kimberly Clark announced plans to shutdown ten factories worldwide, killing-off 5-thousand jobs over the next year-and-a-half!  Kimberly Clark administrators blame their efforts to reduce costs by $550-million USD, by 2022, on the U.S. population Death Spiral (not enough babies being born).  Offshore rig operator Maersk Drilling laying off 84 people in March, due to loss of contract.  Oil transporter First River Energy now chapter 11 bankrupt busted.  New York based petroleum company Hess eliminating 3-hundred jobs in Texas, in an attempt to make a profit for the first time since 2014!

Virginia:  Railroad company Norfolk Southern shutting down its Roanoke dispatch center, 56 jobs affected by consolidation ops.

Washington:   Paper and wood construction products maker Georgia Pacific shutting down its ops in Camas, 243 jobs gone by May!  Tacoma experienced the highest rent increases of any U.S. city in 2017, by 8.8%.  

Wisconsin: Texas based toilet paper and disposable diaper maker Kimberly Clark shutting down two factories, 610 jobs gone by Spring 2019!  Family run Flambeau River Papers suddenly laid off 82 people saying “Paper prices in the commodity grades have really gone down while pulp prices have gone up.”  Bankrupt busted Real Alloy Recycling shutting down its aluminum melting factory in Mount Pleasant, 40 jobs gone.  Illinois based ACCO Brands shutting down its Pleasant Prairie distribution center, 26 jobs gone by the end of May due to a 35% crash in net income.

WARN=Worker Adjustment & Retraining Notification

Mining/Industrial/Logistics layoffs, December 2017:NEVERENDING “BUSINESS SLOWDOWN”

Corporate Incompetence: WalMart refuses to pay rent in China, since 2002, gets shut down for selling bad meat. Think your U.S. WalMart stores are bad?

WalMart is in trouble in China, because it hasn’t paid rent since 2002, and it lies about what it sells.

According to Chinese media, in 2002 WalMart signed a 15 year lease contract with the Wanguo Shopping Plaza in the northeastern coastal city of Dalian.  Problems occurred with the timely development of the property, and WalMart decided to move across the street.  The problem is that they signed a 15 year contract.

Wanguo Shopping Plaza has sued WalMart for back due rent.  Chinese courts have ruled that the lease contract is still binding.

WalMart had claimed that Wanguo Shopping Plaza lost its business license, and that the contract was terminated in 2007.  WalMart also claimed they paid about two years worth of rent.  The courts found that Wanguo Shopping Plaza never lost its license, there is no evidence the contract was terminated, and that WalMart paid a little more than one year of rent.

This is just the latest in bad things happening to WalMart in China.  In October, 13 Wal-Mart stores were shut down for 15 days for selling incorrectly labelled pork products.  WalMart had previously been penalized 21 times since 2006 for false advertising and selling expired food!

What Economic Recovery? East Idaho home sales suck, so sellers are turning vacant homes into temp rentals, boom for Home Tenders

“People don’t build a 5,000 square foot home to turn it into a rental, but we have a number of those in the community right now.”-Clint Collins, Idaho Falls Rentals

The home sales market is so bad in eastern Idaho that many sellers are turning to temporarily renting out their vacant houses.  To give you an idea of how bad; in October, 2010, Idaho Falls Rentals took on four houses for rent.  Then in July, 2011, eighteen homes, then in August another seventeen.  That’s just one east Idaho property management company!

The plus side for “Home Tender” renters is that they can get a big home for less than the usual rent, but the down side is they have to move out as soon as it sells.