A small group of landlords who own hundreds of rental properties across the province have run out of money, owe over $144 million in unpaid loans and face dozens of lawsuits from creditors, according to documents filed with the Ontario Superior Court of Justice.
Dylan Suitor, Ryan Molony and Aruba Butt are behind 11 now-insolvent corporations that face a “liquidity crisis” with only $100,000 in the bank, the documents say.
The landlords and their corporations are based in the Hamilton area, but specialize in buying, renovating and in some cases relisting “distressed residential real estate in undervalued markets,” said a court factum.
Those markets are in Timmins, Sault Ste. Marie and Sudbury, as well as smaller communities, including Kirkland Lake, Temiskaming Shores and Val Caron.
Thank you for the deeper explanation. I’ve seen a lot of “landlords are all evil” being dropped around on various platforms, I think here you capture the difference pretty well (oligopolistic tendencies, limited liabilities, maximizing profit, major companies with leverage vs micro-landlords with 1-2 rented apartments).
Only thing on top of this would be how REIT is a way to make rentals more like an investment even though there’s not a central investor but managed centrally like a business.