Welcome to 2024
New Year, Same Problems
This is where I would like to tell you that I have set a New Year’s Resolution to be more positive, to Stay Positive, and always look at the bright side of things. I’d LIKE to tell you that, but then I would be lying to you, and I hate liars. I wanted to get up this morning and blow rainbows and unicorn burps your way, but it’s just not in me. In fact, last night my husband decided we should watch Chinatown with Jack Nicholson and Faye Dunaway from 1974. Let me just say, that did NOT put me in a more festive mood or make me want to write positive fluff pieces. In fact, that movie was filled with land grabbers, liars, cheats, crooked politicians, and dirty cops. There really is nothing new under the sun. With that in mind, and knowing that I’m not going to go full Positive Polly, let’s get into why I brought you here today.
This is Concord Springs.
For those of you on the Sumner County side of town, here is the map of Concord Springs.
For reference, Walmart is underlined in red, the park is circled in yellow, and Concord Springs is circled in red. This subdivision was started before The Parks, and is almost complete. There are 152 houses in this subdivision. Here is where is starts to get interesting. Out of those 152, 13 are currently owned by an LLC or another type of company. None of these property owners are the original builder, NVR(Ryan Homes)
SFR JV-HD TL Borrowers LLC C/O Tricon Residential,
SFR JV-HD TL Borrowers LLC C/O Tricon Residential- Ontario
FKH SFR N LP (C/O First Key Homes)- Marietta GA
SFR JV-2 NTL Borrowers LLC (A Delaware LLC)-Santa Ana CA
AH4R Tennessee Properties Two LLC-Las Vegas NV, Calabasas CA
SFR JV-HD Borrower B LLC (C/O Tricon Residential)-Ontario, Santa Ana
SFR JV-HD Borrower B LLC (C/O Tricon Residential)-Ontario, Santa Ana
TAH Holding LP- Tustin CA
SN Tennessee II LLC (A Delaware LLC)-Scottsdale AZ
SFR JV- HD TL Borrower B LLC (C/O Tricon Residential) (address not in Been Verified)Ontario
USCMF SN TNA LLC-Scottsdale AZ
SFR JV-HD Property LLC (A Delaware LLC)-(address not in Been Verified) Tustin CA
TAH Holding LP-Tustin and Santa Ana
The addresses are not included because there are renters living in these properties. However, don’t just believe what I write. Here is an example of where I found the information. (and yes, I clicked on each property in Concord Springs)
These are screen shots from the county’s property assessment page and a report from the LexisNexis. Let’s walk through what this is. SFR JV-HD TL is an LLC that purchased this home in Concord Springs. The first photo shows the current ownership that the county has in their records. It shows SFR owns the home, and Tricon manages the home. In the second photo we see the property transfers of this home. At the bottom is where Ryan Homes had it inspected and ready for sale. The second from the bottom shows when the home was sold to J. A. the first owner of the home in 2021. The next line coming up shows where SFR purchased the home from J.A. in 2022. Interesting things to note, the final line in the center photo, or the top line, shows where the house was quitclaimed. That is the property was simply signed over to someone else. This might be completely normal for big business. An LLC purchases 5-10 homes and then quitclaims them to the parent company or a bank so they are all held in one place. (sound like 2008 yet?) The real wrench is in the third photo. All of these are foreign LLCs. Does that mean China and Russia? Not necessarily. What it means is that these companies are foreign to Tennessee. If you have a business in Ohio and you want to also do business in TN, you have to register your LLC in TN as foreign since your office is in OH. (that is my layman way of explaining this) SFR JV owns 100 properties and has 48 business names.
They are based out of California. Another one of the LLCs that owns in Concord Springs is based out of Maricopa County AZ. Many of these originate in Delaware, but that is not surprising given their banking laws. My understanding is that it is easy to operate out of DE. Maine must have easy registration laws because many of the trucks or trailers you see on the road have ME plates, but their LLC is registered in DE. Make sense? (clear as mud?)
Let’s sum up what we have going on here in town, at least in one subdivision. An investment firm of some sort with an LLC out of CA, AZ, or DE is buying homes for cash. They are paying above what the average American can afford right now. You really want to tell me that a 1440 square foot house with vinyl siding is worth $329k? These firms are inflating prices with their cash payments, and then charging a stupid amount in rent in an area that should not see $2000/month rent prices. Then they are handing the deed over to a complete unknown. Who holds the deed to this home? How many others have been deeded over? Well, here’s at least one more. you will need to click on these photos to see the entire picture. (photos are not my thing)
What do we do? Excellent question. I for one, am tired of waiting for the morons in DC to fix my problems. Those idiots can’t even tell you what a woman is. In Arkansas they passed a law which prohibits foreign land ownership.
Do I know if these LLCs are linked to China or Russia. Nope. There is information I am not privy to, but there are people above my pay grade that are. Those are the people you need to talk to. There is no reason an LLC should own 13 properties in Concord Springs, charge stupid amounts of rent, and then hand the deed over to God knows whom.
Share this with your public officials. Share this with your state reps. Bring this to the attention of your HOA. Start talking about it. My children and yours should be able to purchase a starter home for under $200k. $329k is NOT a starter home price.
It’s a new year and time for a new fight. Are you with me???
Nikki, I’ve been screaming this for years. Some people DO NOT understand the implications of this. My son and daughter in law purchased a home off of Bethlehem road after playing the game of chase and offer all summer and they finally purchased a home that had to literally be gutted and redone. Some of the houses they were missing putting offers on were $250-290 and they were losing out on every single contract. Gone in hours! Cash sales. Finance companies began to offer them two loans, one to enlarge their down payment and the other to cover the mortgage, all I could think about was 2006. So my husband and I were pounding our fists on the table hollering NO! You. Never go in to a new home owner as a first time buyer with two loans.
I digress...We busted out bottoms on that house for 4 months trying to get it livable. He works retail (manager) and she is a teacher. If they do not stop this nonsense they are going to chase all of the teachers out of these areas and push them south of the city where they can find a smaller commute and still afford housing and earn more.
When I started saying ESPECIALLY about the 2006 issue, we were in Alabama (it’s where my husbands family lives, NASA people) we were in a town called Pinson, just SE of Birmingham in the county and we purchased our second at a reasonable price, ($150-ish), this was they year 2000. They decided to build a neighborhood behind us and offer those purchasing not only balloon payments, but second mortgages going in as first time buyers. Within three years, almost every single one of those homes (2 and 3 story bricks) had gone belly up and these poor people had lost their homes!
We need to stop this from happening. You never want a majority of your citizens to be rental properties, not saying there isn’t a need for it, but not at an inflated price. The danger there is that they aren’t rooted deep enough in the town. Not to say just because they are rentals but because they are renters in an inflated priced area, and when something better comes along they’re gone.
Add to that there are people like us, my husband and I had tried to downsize for the last three years and cannot. We can’t find anything we can afford, everything around us is priced higher than we have right now and we’re sitting on 3/4 acre with 2400 sq. Ft. Let that sink in! On top of we have kids that like to come over (2-3) and a camper. We have NO PLACE to have gatherings or even park the camper which would lend me to renting space at a storage facility for upwards of $125 a month on top of an overpriced new mortgage. So we stay. BUT the minute we can find something close that is one level and priced closer to our need we will probably jump on it.
So not only is the area not lending to those truly in need of housing, but they are forcing out the older people of which have some cash (sometimes) that could be spent on fundraisers and events.
Anyway, yes, I’ll be calling whoever I can find. Thanks for the information, makes me just a little sick to my stomach.
I've been saying this forever!! We shouldn't be selling SFR to investors period!!! They have been doing this shit forever. Housing shortages cause property values to increase so real estate agents fuel the paranoia and love to sell to cash buyers. Everyone of those real estate brokers are making bank and it's just "capitalism" - I say bullshit and we should get rid of the real estate agents that profit from the bullshit... especially the local RE peeps who should give a shit about the town but don't as long as they're making $$