The situation at a Las Vegas condo complex has reached a fever pitch as one man attempts to buy every unit and rent them out as apartments.
"The plan is to take over the whole complex," Daniel Wright, who owns a vast majority of the units at Bonanza Park, told 8 News Now in a story published March 5. "They've known about the plan for years. This is not a secret."
Wright says he and his companies began their purchase spree over a decade ago and currently own more than 100 of the complex's 132 units. He now has a near-total hold on the community, which has left some of the few remaining owners clinging to their units feeling the heat.
One owner, Robert Rice, says he used his life savings to purchase his unit in 2019, but was pressured to sell shortly afterward.
"I'm stressed out," he told the 8 News Now. "I don't know what to do."
Rice isn't alone in his feelings.
"We are being bullied," Kammie Thomaseec, who owns one unit as an investment along with her husband, told 8 News Now.
Another owner, Dan Tschetter, was more blunt when describing the situation with the majority owner.
"It's been pure hell since the day I met this guy," he told the local broadcaster.
Power of the majority
With every unit he purchases, Wright gains more voting power within the community, such as with the homeowners association. Wright says he's done nothing wrong.
"I have nothing to hide down here," Wright said. "Some people don't like the big landlord or whatever like that. I have a business plan. I'm trying to prove myself."
Some unit owners claim Wright isn't offering them enough for their units, but he insists they're being offered fair market value. Wright has little sympathy for other owners who feel pushed around.
"There's certain rules and regulations and sometimes they're in favor of the little guy, sometimes they're in favor of the big guy," he said. "If they don't like the rules, it's a free country, they can move somewhere else, they could buy more units, they could band together, they could do a lot of things."
When an investor buys up large portions of housing in an area, it can reshape the local housing market. The last few individual owners at Bonanza Park are willing to fight to keep their homes, but they're simply outnumbered.
When companies buy up homes as investments, it makes it harder for regular folk to enter the housing market. There are some strategies, however, you can implement to make yourself more competitive during the homebuying process.
Offer a larger down payment
A higher down payment shows buyers you're serious and can make your offer more attractive, especially in markets where cash offers are common. As a bonus, a higher down payment can mean a lower monthly mortgage payment.
Consider less competitive areas
Don't be afraid to look outside of your ideal location. Expanding your search to up-and-coming neighborhoods can improve your odds of finding a home that fits your situation. It may also save you a considerable amount of money.
Be more flexible with features
Make a priority list of what you must have — and what you're willing to forgo. Don't forget that you may be able to add the features you want at a later time. For example, if you need an office, consider whether the garage or basement could work, or whether an addition is an option.
Stay engaged with your HOA
If you're buying a condo or entering a housing community, stay informed about HOA changes. Attending meetings and letting your voice be heard may lead to positive changes. The alternative is allowing others to make decisions without your input.
Large investors will likely continue to reshape the housing market, making it more difficult for single buyers to buy a home. But being financially prepared, flexible and staying informed can improve your chances of finding a place you can truly call home.
Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
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