Home Flipping Declines and Investor Profits Stumble Across U.S. During Third Quarter

 ATTOM, a leading curator of land, property data, and real estate analytics, today released its third-quarter 2024 U.S. Home Flipping Report showing that 74,618 single-family homes and condominiums in the United States were flipped in the third quarter. Those transactions represented 7.2 percent, or one of every 14 home sales, nationwide during the months running from July through September of 2024.

The latest portion of flipped properties was down from 7.6 percent of all sales in the U.S. during the second quarter of 2024, extending a common pattern seen during annual Spring and Summer buying seasons when other types of home sales spike. The flipping rate returned to the 7.2 percent level recorded in the third quarter of last year.

However, while the flipping rate followed historical trends, profits turned back downward for investors who buy, renovate and quickly resell homes following a period when their fortunes had been improving.

The latest data showed that home flipping nationwide typically generated just a 28.7 percent return on investment before expenses on homes re-sold during the third quarter of this year. That was down from 31.2 percent in the second quarter of 2024 after six straight quarterly increases that had signaled a marked improvement for the flipping industry.

The typical profit margin on homes flipped during the third quarter of 2024 – based on the difference between the median purchase and median resale price for home flips – slid down to only half of the mid-50 percent peak hit in 2016. It also stayed withing a range that could easily be wiped out by carrying costs that include renovation expenses, mortgage payments and property taxes, exposing again the struggles U.S. home flippers are having in turning healthy profits.

Gross profits on typical flips around the country, meanwhile, decreased to about $70,000 . That was down roughly $5,000 from the prior quarter and $10,000 from highs reached two years ago, although still up slightly from the third quarter of 2023.

“Home flippers just can’t seem to shake the doldrums. After more than a year when things were getting better, they turned notably worse again over the Summer,” said Rob Barber, CEO for ATTOM. “One quarter’s worth of numbers isn’t enough to make any grand statements about another downturn. The next six months should speak more to that, especially amid an ongoing tight housing market that should work in their favor. But as interest rates remain double what they were a few years ago and inflation keeps raising renovation costs, investors continue to have a tough time making the kind of profits that would lure more into the game.”

Home-flipping rates drop quarterly in two-thirds of U.S.

Home flips as a portion of all home sales decreased from the second quarter to the third quarter of 2024 in 115 of the 183 metropolitan statistical areas around the U.S. with enough data to analyze (62.8 percent), although they were still up annually in 95, or 51.9 percent of those markets. Measured against the same period of 2023, a majority of flipping rates changed by less than one percentage point. (Metro areas were included if they had a population of 200,000 or more and at least 50 home flips in the third quarter of 2024).

Among the metro areas analyzed, the largest flipping rates during the third quarter of 2024 were in Warner Robins, GA (flips comprised 22.7 percent of all home sales); Macon, GA (16.8 percent); Atlanta, GA (13.6 percent); Columbus, GA (12.8 percent) and Memphis, TN (12.7 percent).

Aside from Atlanta and Memphis, the highest third-quarter flipping rates among metro areas with a population of at least 1 million were in Birmingham, AL (11 percent), Phoenix, AZ (10.7 percent) and Tampa, FL (10 percent).

The smallest home-flipping rates were in Seattle, WA (3.5 percent); Des Moines, IA (3.7 percent); Honolulu, HI (3.8 percent); Portland, ME (3.9 percent) and Madison, WI (4 percent).

Typical home-flipping returns down in more than half of U.S.

The median $315,250 resale price of homes flipped nationwide in the third quarter of 2024 generated a gross profit of $70,250 above the median investor purchase price of $245,000. That resulted in a typical 28.7 percent gross profit margin before expenses in the third quarter of 2024, down more than two points from 31.2 percent in the second quarter of 2024. It also was down from 29.7 percent in the third quarter of last year.

The latest nationwide figure remained only about half the 56.3 percent level reached in mid-2016 and well below a more recent peak of 48.8 percent in 2020.

Profit margins decreased from the second to the third quarter of this year in 106 of the 183 metro areas analyzed (57.9 percent) and were down annually in 105 of those markets (57.4 percent).

Metro areas with the biggest quarterly declines in typical profit margins during the third quarter of 2024 included Salisbury, MD (ROI down from 129.8 percent in the second quarter of 2024 to 61.8 percent in the third quarter of 2024); South Bend, IN (down from 89.4 percent to 36.4 percent); Gainesville, FL (down from 64 percent to 20 percent); Peoria, IL (down from 78.2 percent to 36.4 percent) and Youngstown, OH (down from 54.1 percent to 20 percent).

Metro areas with a population of at least 1 million and the largest quarterly profit-margin drop-offs were Buffalo, NY (ROI down from 100 percent in the second quarter of 2024 to 73.5 percent in the third quarter of 2024); Honolulu, HI (down from 24.4 percent to 5.9 percent); Tulsa, OK (down from 59.1 percent to 40.8 percent); San Jose, CA (down from 26.8 percent to 12.1 percent) and Pittsburgh, PA (down from 115.3 percent to 101.8 percent).

Profit margins below 30 percent in nearly half of nation

The recent fallback resulted in typical gross profit margins of less than 30 percent in 80, or four of every 10 metros with enough data to analyze in the third quarter of 2024. That was up from 73 of the same group of metro areas in the second quarter and 69 a year earlier. Typical profit margins surpassed 50 percent in the third quarter of this year in only about one-third of the areas reviewed.

Markets with the largest gross returns on investment for typical home flips completed during the third quarter of 2024 again were concentrated in lower-priced areas, especially in the Northeast and South. They were led by Ocala, FL (141.5 percent return); Pittsburgh, PA (101.8 percent); Scranton, PA (100 percent); Flint, MI (98.9 percent) and Columbus, GA (93.8 percent).

Aside from Pittsburgh, the largest investment returns in the third quarter among metro areas with a population of at least 1 million were in Cleveland, OH (78.3 percent); Rochester, NY (78.2 percent); Baltimore, MD (78 percent) and Richmond, VA (75 percent).

Metro areas with a population of at least 1 million and the lowest returns on typical home flips in the third quarter of 2024 were Austin, TX (4.5 percent); Honolulu, HI (5.9 percent); Houston, TX (6.2 percent); San Antonio, TX (6.6 percent) and Dallas, TX (6.9 percent).

Higher-end markets still have best raw profit numbers

The largest raw profits on median-priced home flips in the third quarter of 2024, measured in dollars, were concentrated in areas of the West, South and Northeast regions where typical resale prices mostly topped $400,000. Eight of the top 10 fell into that category, led by San Francisco, CA (typical gross profit of $234,000 on a median resale value of $1.1 million); New York, NY ($170,000 profit on a median resale value of $600,000); Washington, DC ($170,000 profit on a median resale value of $545,000); Salisbury, MD ($168,016 profit on a median resale value of $440,000) and Boston, MA ($160,000 profit on a median resale value of $625,000).

The South also continued to dominate the low end of the spectrum, with 13 of the 15 lowest raw profits on median-priced transactions during the third quarter. Most came in areas with median resale prices below $300,000. The smallest were in Warner Robins, GA (typical 3,500 profit on a median resale value of $268,500); Killeen, TX ($5,302 profit on a median resale value of $240,627); Boise, ID ($7,936 profit on a median resale value of $439,469); Lubbock, TX ($12,372 profit on a median resale value of $200,688) and Amarillo, TX (14,852 profit on a median resale value of $170,852).

All-cash financing still comprises two-thirds of home flips

Nationwide, 64.1 percent of homes flipped in the third quarter of 2024 had been purchased by investors with cash only. That was up slightly from 63.1 percent in the second quarter of 2024, and up from the 61.6 percent portion in the third quarter of 2023. Meanwhile, 35.9 percent of homes flipped in the third quarter of 2024 had been bought with financing. That was down from 36.9 percent in the prior quarter and 38.4 percent a year earlier.

Among metropolitan areas with a population of 1 million or more and sufficient data to analyze, those with the highest percentage of homes flipped in the third quarter of 2024 that had been purchased with cash included Buffalo, NY (81.7 percent); Cleveland, OH (80 percent); Birmingham, AL (79.9 percent); Detroit, MI (76.4 percent) and Orlando, FL (74.1 percent).

Average time to flip nationwide decreases by a week

The average time it took from purchase to resale on home flips went down from 166 days in the second quarter of 2024 to 159 days in the third quarter. It also was down from 162 days in the third quarter of 2023.

Smaller portion of home flips going to buyers using FHA loans

Of the 74,618 U.S. homes flipped in the third quarter of 2024, 10.4 percent were sold to buyers using mortgages backed by the Federal Housing Administration (FHA). That was down from 11 percent in the second quarter of 2024, although still up from 10 percent in the third quarter of 2023.

Among metro areas with a population of 200,000 or more and at least 50 home flips in the third quarter of 2024, the highest percentages of flipped properties sold to FHA buyers — typically first-time home purchasers — were in Shreveport, LA (28.9 percent; Lakeland, FL (28.9 percent); Greeley, CO (25.9 percent); Visalia, CA (25.3 percent) and McAllen, TX (24.8 percent).

One of every six counties has home-flipping rates of at least 10 percent

Home flips accounted for at least 10 percent of all home sales in 155, or 15.7 percent, of the 989 counties around the U.S. with at least 10 flips in the third quarter of 2024. That was down from the 19.5 percent portion of all counties with enough data to measure in the second quarter of 2024. The leaders in the third quarter of this year were all in Georgia: Houston County (Warner Robins) (24.1 percent flipping rate); Cobb County (Marietta) (23.9 percent); Haralson County (west of Atlanta) (20.9 percent); Peach County (outside Macon) (20.1 percent) and Rockdale County (east of Atlanta) (19.7 percent).

Report methodology

ATTOM analyzed sales deed data for this report. A single-family home or condo flip was any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months. The average gross flipping profit is the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans estimate typically run between 20 percent and 33 percent of the property’s after-repair value). Gross flipping return on investment was calculated by dividing the gross flipping profit by the original purchase price.

https://www.attomdata.com/news/most-recent/q3-2024-home-flipping-report/

Exxon Plans Large Nat Gas Plants To Supply Electricity To Data Centers

 It isn't just nuclear projects getting in on the "selling power to data centers" trend - now oil supermajor Exxon is joining the trend. 

In fact, Exxon is planning a large natural gas-powered plant to supply electricity directly to data centers, incorporating technology to capture over 90% of its carbon emissions, according to the New York Times.

This would be Exxon’s first power plant not dedicated to its own operations. Carbon capture systems remain rare and costly, despite federal subsidies, limiting their broader adoption.

CEO Darren Woods said this week: “There are very few opportunities in the short term to power those data centers and do it in a way that at the same time minimizes, if not completely eliminates, the emissions."

Exxon exec Dan Ammann added: “We’re being driven by the market demand here. It’s low carbon, it’s available on an accelerated timeline and it avoids all the grid interconnection challenges.”

Tech giants are increasingly willing to pay extra for reliable clean energy, including nuclear power. Here are Zero Hedge we spent most of 2024 documenting numerous tech giants like Google, Meta and Microsoft all inking deals with nuclear power generators to secure data center power in the future.

The New York Times adds that Exxon, having secured land and engaged potential customers, plans to launch its gas-powered plant within five years—faster than building new nuclear reactors.

Uniquely, the plant would operate off-grid, avoiding lengthy grid connection delays. This move highlights how the growth of data centers and AI is transforming the energy sector, pushing Exxon into a business it once avoided.

Chevron could be next, too. Its CEO Mike Wirth predicts off-grid power projects will become more common, and Exxon is exploring similar ventures, aiming to launch a gas-powered plant with carbon capture technology.

Exxon plans to spend $30 billion over six years on emission reduction and alternative energy while expanding oil and gas production. The company sees growing electricity demand from data centers as an opportunity to enter the power business, leveraging its expertise in carbon management and pipeline networks.

https://www.zerohedge.com/markets/exxon-plans-large-nat-gas-plants-supply-electricity-data-centers

'UK deputy PM eyes "sweeping planning overhaul" to fast-track new homes'

 The UK government will deliver a "sweeping overhaul" of council planning committees aimed at "unblocking the clogged-up" system, Angela Rayner is expected to announce.

Reforms proposed by the deputy prime minister would see planning applications which meet local development plan requirements bypass council committees.

This would be aimed at ending delays to new homes, cutting the time and resources spent on individual schemes and providing more certainty to housebuilders.

Rayner, who is also the housing secretary, said: "Building more homes and infrastructure across the country means unblocking the clogged-up planning system that serves as a chokehold on growth.

"The government will deliver a sweeping overhaul of the creaking local planning committee system.

"Streamlining the approvals process by modernising local planning committees means tackling the chronic uncertainty and damaging delays that act as a drag anchor on building the homes people desperately need."

The deputy PM said the government was "tackling the housing crisis we inherited head-on with bold action" as it worked towards building 1.5 million homes over five years.

The housebuilding commitment was one of the six "milestones" the prime minister set out in a wide-ranging speech on Thursday, against which the public can measure the government's performance.

Under Rayner's proposals, council officials would have a strengthened role in decision-making about planning while the councillors who sit on the committees will get new mandatory training.

Alongside the reforms, the government is this week expected to confirm sweeping changes to the national planning policy framework – the document which sets out national priorities for building – following a consultation.

This is expected to see increased housing targets which will be mandatory for the first time, with the aim of reaching the government's pledge to build 1.5 million homes this Parliament.

Rayner said: "Through our planning & infrastructure bill, alongside new national planning policy Framework and mandatory housing targets, we are taking decisive steps to accelerate building, get spades in the ground and deliver the change communities need."

The Conservatives said Labour had set a house-building target that the Office for Budget Responsibility "has already said they can't achieve — because of their own budget".

A Tory spokesman added: "Following the Labour Mayor of London's lead they will almost certainly fail to meet their house-building commitments.

"These measures are nothing more than a list of empty promises which will do nothing to ensure that Britain has the housing it needs where it needs it."

https://www.marketscreener.com/news/latest/UK-deputy-PM-eyes-sweeping-planning-overhaul-to-fast-track-new-homes-48546757/

The Commercial Mortgage Crisis Deepens

 by Peter Earle via the American Institute for Economic Research (AIER),

The delinquency rate for commercial mortgage-backed securities (CMBS) tied to office properties reached 10.4 percent in November 2024, approaching the 10.7 percent peak reached during the 2008 financial crisis. The ascent is the fastest two-year increase on record, with rates climbing 8.8 percentage points since late 2022, significantly outrunning the 6.3-point rise seen during the financial crisis nearly 15 years ago.

The office real estate sector has been grappling with a severe downturn for several years now, but are accelerating recently as they are driven by persistently high vacancy rates and declining rents. Property values, particularly for older office buildings, have plummeted, with many losing 50 to 70 percent of their market value and in some cases becoming effectively worthless. Those conditions have left real estate portfolio managers and building owners unable to borrow, refinance or sell properties, contributing to rising delinquencies and foreclosures. (Mortgages become effectively delinquent when payments are missed beyond a standard 30-day grace period.)

Three key factors contributed to the widespread impairment of office properties and, in turn, securitized mortgage products: 

1. malinvestment due to artificially low interest rates and excessive credit expansion,

2. zoning restrictions hampering property repurposing,

3. and the widespread adoption of remote work following COVID-19 lockdowns.

During the 2020–2022 period of near-zero benchmark rates (and in real terms, negative interest rates), lenders underwrote commercial real estate loans with minimal debt service coverage ratios, frequently projecting property income to just cover interest payments. Those assumptions faltered as rates rose, exposing the speculative nature of many of the core suppositions undergirding those loans. Adding to that, rigid zoning and building regulations (in addition to obstinance among owners, in some cases) have slowed the transition of obsolete office spaces to other uses, such as residential conversions. Lastly, the COVID-19 pandemic accelerated a long-term shift toward remote work, reducing demand for traditional office spaces.

Loans can be removed from delinquency lists through resumed payments, foreclosure sales (typically at steep losses to investors), or loan restructuring under the so-called “extend-and-pretend“ strategy, which defers foreclosures into future years. This approach has been widely employed, pushing questions about the financial health of some real estate investment entities to 2025 and beyond.

Among commercial real estate (CRE) segments, office properties are the most troubled, with delinquency rates significantly outpacing lodging (6.9 percent), retail (6.6 percent), and multifamily housing (4.2 percent). Of particular note, the industrial sector remains robust with a delinquency rate of just 0.3 percent. However, the distress is not confined to office properties. CRE-CLO (commercial real estate collateralized loan obligation) bonds, which include short-term floating-rate loans across various property types, are seeing distress rates hit record highs. Office loans account for nearly one in five distressed CRE-CLO loans, but multifamily loans are also at risk, with distress rates reaching 16.4 percent in Q3 2024. The weakness stems from the collision of soaring financing costs and underperforming properties. Indeed, as Austrian Business Cycle Theory (ABCT) predicts, artificially low interest rates stimulated aggressive underwriting during the pandemic, a large portion of which has proven wholly unsustainable.

Efforts to convert office buildings into residential spaces are increasing but remain limited by structural and economic constraints. Many office towers are unsuitable for conversion due to their large floor plates or prohibitively high retrofitting costs which often exceed the cost of demolition and rebuilding. In 2024, 73 office-to-residential conversions were completed, with an additional 30 underway. Despite plans to increase the pace in 2025, the cumulative impact remains minimal, addressing just 7.9 percent of the 902 million square feet of vacant office space nationwide.

The “survive till 2025” mindset dominates market sentiment, with landlords hoping for substantial Federal Reserve rate cuts to alleviate financial pressures. However, while the Fed has reduced rates, they remain between 4.5 percent and 4.75 percent, with the Secured Overnight Financing Rate (SOFR) at 4.57 percent. Moreover, concerns regarding $36 trillion in U.S. government debt, tariff threats, and signs of slowing disinflation have pushed long-term Treasury yields back to pre-cut levels, undermining hopes for refinancing relief. Those conditions have left many properties — especially those tied to bridge loans — on the brink of financial distress.

The financial risks associated with office mortgage losses are widely dispersed among global investors, thus diminishing the potential threat to the U.S. banking system. Office mortgages are held by a vast array of investors, including CMBS and CRE-CLO investors, insurance firms, Real Estate Investment Trusts (REITs), private equity firms, and international financial institutions. While U.S. banks have some exposure and have already recognized significant losses, no major collapses have occurred. Smaller banks with geographically and/or commercially concentrated mortgage portfolios remain at heightened risk, and escalating stress could precipitate systemic consequences.

The commercial real estate market’s troubles are not a temporary phenomenon but a structural crisis rooted in monetary policy-induced overbuilding, regulatory barriers, and a permanent shift in work patterns vastly accelerated by pandemic lockdowns. Vulture investors have emerged, but sparingly. The sector faces profound challenges which will unfold both against and in response to the forward trajectory of monetary policy, the consequent shape of the U.S. Treasury yield curve, and broad macroeconomic developments. Hopefully the stage is not being set for the next in an increasingly annualized procession of crises.

https://www.zerohedge.com/markets/commercial-mortgage-crisis-deepens

GIC-Backed Manufactured-Housing Operator Yes! Explores 2025 IPO

 Yes! Communities, one of the largest operators of manufactured-housing communities in the US, is exploring an initial public offering, according to people with knowledge of the matter.

The Denver-based company, which is backed by Singaporean sovereign wealth fund GIC Pte, is discussing a 2025 listing in which it could raise $1 billion or more, said the people, who asked not to be identified discussing confidential information. Yes! is working with Goldman Sachs Group Inc. and is set to add other underwriters in coming months, the people said. No final decisions have been made and the company could opt to remain closely held.

https://www.bloomberg.com/news/articles/2024-12-06/gic-backed-manufactured-housing-operator-yes-explores-2025-ipo

Fannie Mae CEO reveals what's really behind rising mortgage rates

 Homeowners shouldn't count on lower rates; they should build strong credit so they can qualify for the most affordable loan

A common misconception is that Fed rate cuts automatically mean lower mortgage rates.

The U.S. Federal Reserve cut a key interest rate for the second time in two months. So, interest rates on mortgages should come down along with it, right? Guess again.

After the first cut in September, mortgage rates moved up nearly 50 basis points (or half a percentage point). Moreover, few expect mortgage rates to fall after the most recent cut, once again disappointing those looking to buy a home and prompting questions about what really drives mortgage rates.

A common misconception is that Fed rate cuts automatically mean lower mortgage rates. However, the Fed does not set mortgage rates. Instead, mortgage rates are influenced far more by longer-term Treasury bond yields, which, in turn, are driven by investor expectations of broader economic and financial conditions.

Two primary factors drive mortgage rates:

1. The "base rate": This rate is tied to yields on medium-term U.S. Treasury bonds, ordinarily 10-year bonds. The 10-year Treasury BX:TMUBMUSD10Y is the risk-free alternative for investors when deciding how much return they want when they buy a typical mortgage - usually in the form of a mortgage-backed security, or MBS.

Unlike the short-term fed funds rate, the 10-year Treasury yield is set by the market, not the Federal Reserve. Private investors determine Treasury yields based on all kinds of factors, including expectations for economic growth, inflation, and future policy changes. Ten-year Treasury yields can and do move independently of short-term rates, as they have in the last month.

2. The mortgage "spread": This is the premium that investors require to cover the extra risks associated with buying MBS, as well as lenders' costs to underwrite, originate, and securitize mortgages. Investors, for example, focus on prepayment risk, or the risk that homeowners exercise their right to pay off their 30-year fixed-rate mortgage earlier than the mortgage term, typically via either a refinance or sale of the home. When bond market volatility rises (as it has), prepayment risk rises. Spreads can also widen or narrow based on changes in lenders' costs.

The spread plus the base rate equals the mortgage rate. Changes to either of these can influence whether mortgage rates rise or fall.

The Fed's September and November rate cuts had been signaled long in advance, causing investors to plan and act accordingly. So the actual event was already largely priced into 10-year Treasury yields. Then, shortly after the first Fed action in September, strong economic data and labor-market data pointed to a better-than-expected outlook. When paired with market expectations that Treasury issuance may increase in the years ahead, Treasury bond prices dropped, pushing the yield higher. The resulting 0.70% boost in 10-year Treasury yields pushed up mortgage rates rather significantly in a short period of time.

Mortgage rate increases might be better viewed as simply a return to historical norms.

Mortgage rates currently are at roughly 7%. The increase in the 10-year Treasury bond yield was the main reason mortgage rates moved higher. Notably, the spread - the other component of mortgage interest rates - held relatively stable during the same period.

It's important for mortgage investors, the housing market, and consumers to understand that it is unlikely we will again see the low mortgage rates we had during the COVID-19 pandemic, when a unique combination of monetary and fiscal policy sent rates to near all-time lows.

In fact, current mortgage rates and Fannie Mae's forecast for 2025 rates are well in line with rates over the past several decades. Since 1990, the 30-year fixed-rate mortgage has averaged 6%. Consequently, recent rate increases might be better viewed as simply a return to historical norms after a relatively brief period of abnormal lows, spurred by a once-in-several-generations pandemic.

The implications are wide-ranging. Mortgage investors favor certainty - but today's market carries a lot of uncertainty. In addition to the normal uncertainty around Fed rate moves, there is the effect - or lack of effect - of the Fed reducing its large mortgage-backed securities (MBS) portfolio (initially created during the Great Financial Crisis). Also, future regulation changes could provide incentives or disincentives for banks and other investors to hold MBS on their books, moves that could affect MBS prices and attractiveness as investments.

Higher mortgage rates for longer may continue to weigh down demand and home sales.

For home buyers, higher rates for longer may continue to weigh down demand and home sales. The Mortgage Bankers Association recently reported that mortgage demand has fallen 41% since rates started rising again in September. As supply continues to be constrained and if rates continue to be in line with historical norms (but higher than during COVID), Fannie Mae economists do not predict any large uptick in home sales in 2025.

For potential homebuyers, the takeaway is that they shouldn't count on Fed rate cuts to lower mortgage rates. Instead, they should focus on building the strongest possible credit record to qualify for the lowest rate lenders offer. And, as always, first-time buyers should get as smart as possible about the home-buying process so that when the opportunity arises, they can get into a home and mortgage that sets them up for long-term success.

https://www.morningstar.com/news/marketwatch/20241205336/fannie-mae-ceo-reveals-whats-really-behind-rising-mortgage-rates

"This Is Nuts": NYC Pays Pakistani-Owned Roosevelt Hotel $220 M To House Illegal Aliens

 Americans should be outraged by New York City's $220 million sweetheart deal with Pakistan to lease the prestigious Roosevelt Hotel in Midtown Manhattan as a luxury shelter for illegal aliens. The most alarming issue is that NYC paid a foreign government to help house the migrants.

X user John LeFevre resurfaced a 2023 news story, first published by The Economic Times, regarding Pakistan's decision to lease the iconic Roosevelt Hotel to the local government, sympathetic to globalist policies, such as open borders. 

For some context, Pakistan has owned the Roosevelt Hotel since 1979. State-owned Pakistan International Airlines acquired the trophy property through its investment arm, PIA Investments Limited. 

According to the 2023 report, the lease agreement spans three years, during which NYC stuffed thousands of illegal aliens into the 1,250-room hotel like cattle—funded entirely by taxpayers. This arrangement has sparked outrage about how NYC paid a foreign gov't to help support the invasion of the third world into a first-world city.

"The hotel is owned by the government of Pakistan, and the deal was part of a $1.1 billion IMF bailout package to help Pakistan avoid defaulting on their international debt," LeFevre wrote on X. 

According to the public records website The Org, Najeeb Samie is a director at Roosevelt Hotel Corporation, as well as a director at Habib Bank and board member and managing director at PIA Investments.

Samie's connection with Habib Bank is alarming, given that in 2017, the New York State Department of Financial Services fined the Pakistani bank $225 million and surrendered its license to operate in the US over compliance failures in its New York branch, such as weaknesses in monitoring transactions for potential links to terrorism financing and sanctions evasion. 

Meanwhile, the Department of Government Efficiency, aka DOGE's Vivek Ramaswamy (also led by Elon Musk), is livid over NYC funding a foreign gov't entity with taxpayer dollars in supporting the migrant invasion. He called the migrant housing scheme totally "nuts":

"A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts.

Musk also chimed in, calling it "Crazy."

Here's what X users had to say: 

What in the actual!

https://www.zerohedge.com/political/nuts-nyc-pays-pakistani-owned-roosevelt-hotel-220-million-house-illegal-aliens