Korva rescues the ideas worth keeping from podcasts. Each one becomes a Card.
A cheap house can become collateral for a huge mortgage when an associate buys it at an inflated price backed by an inflated appraisal.
The landlords often paid two or three times recent sale prices for homes that showed no comparable renovations.
DSCR loans have no borrower loan limit, letting conspirators theoretically repeat inflated valuations hundreds of times, extract millions, then abandon the debt and properties.
Two previously unknown investors quietly amassed more than 700 Baltimore homes, creating one of the city’s largest private portfolios.
Two investors borrowed about $100 million in only a few years, using Baltimore homes as collateral.
Wall Street money transformed private lending from short-term fix-and-flip loans into 30-year landlord mortgages called DSCR loans.
Eluzer Gold and his LLCs bought more than 500 Baltimore homes, yet contacted residents said they had never heard of him.
Starting in late 2024, companies tied to one landlord entered foreclosure and bankruptcy after building the portfolio for years.
Eluzer Gold's LLC bought 20 red-brick row houses on Baltimore's 2400 block of Etting Street. They later went into foreclosure and were effectively abandoned.
Pension funds, insurance companies, and sovereign wealth funds poured capital into fix-and-flip lending, vastly expanding its scale.
The US housing shortage makes continued Wall Street lending for construction and repairs necessary, even when some loans fail.
Despite individual failures, most DSCR loans across the country still appear to be performing well in current data.
Bring your next episode to Korva.
Turn podcast episodes into Cards you can save, explore, and find again.