[Retric]

Not nessisarily relevant if the same management companies are running these rentals for large numbers of investors.

“25 money laundry clients, all with about $3 million (after you & your washing cut) they need to invest. $75 mil? Let’s buy 6 dingbats and put them in an REIT. Which hires a management team” This means that specific team is managing property for a hypothetical group of 25 people.

The second part “If the REIT buys a building for an inflated price, and they’re getting clean money monthly? They can just sit on it until someone legit comes along, having convinced a bank to make them a very large mortgage on an inflated price.” In other words they don’t care that much about cash flows the way somone leveraged to the hilt would.

That said these numbers completely ignore leverage, that 75 million investment could easily own 200+ million in property.