Cover Story :: Article :: Philadelphia City Paper
It was, demographically speaking, a brilliant business model. White, middle-class families who had been sustained for generations by factory jobs were leaving in droves; low- and middle-income Hispanics who needed affordable housing were moving in. Coyle bought houses from McBrides, Sloans and Myerses and sold them to Felicianos, Colons and Lopezes.For much of his career, these transactions were straightforward: Coyle bought for less and sold, or rented, for more.But in the mid-\’90s, his business model began to change in a profound way. This change coincided with the rise of the housing bubble, as banks came to see property not as actual houses with actual people paying actual mortgages, but as abstract commodities to be sliced and sold — commodities that, the thinking went, could only increase in value. In 1996, Coyle began taking out second mortgages on his properties and using them as collateral for cash loans. He began bundling his properties:
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