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Illustration: Rebecca Zisser/Axios

There's a lot of risk in real estate. Just owning it, of course, is the main risk. It can work out well for people lucky enough to be able to put a small down payment on a house before it soars in value.

Why it matters: Real estate can also cause a global financial crisis, should millions of Americans find themselves underwater on their mortgages.

Driving the news: Wall Street is increasingly looking for ways to take on these risks. Companies like Point will buy an equity stake in your home, while Zillow and Opendoor will take on the risk of finding a buyer, giving you an up-front cash payment for your house, no staging or repainting necessary. Often, the houses they buy end up getting rented out by giant Wall Street landlords, rather than being sold to individuals.

  • Redfin is trying out a similar approach for buyers, moving toward a future where house hunters can buy entirely online.
  • The entrenched system of 6% brokerage commissions is being taken to court, with Redfin's CEO describing the existing MLS cartel as a dinosaur about to be hit by an asteroid.

What we’re seeing: WeWork was designed to be asset-light, renting out office space and then subleasing it to smaller tenants. Now, seeing demand for real estate risk, it has created a sister company, ARK, to buy up the buildings it's renting in. Investors get to choose exactly which risk they're interested in.

  • The government is also in the business of reallocating real estate risk to revitalize depressed urban areas. University of Georgia law professor Mehrsa Baradaran has proposed a "Homestead Act for the 21st Century" that would give abandoned properties to local residents without needing to create financier-friendlyOpportunity Zones.

The big picture: De-risking homeownership has always made sense. That's why the government created Fannie Mae and Freddie Mac. If Silicon Valley financiers lose money by taking on these risks, well, they can afford to. And if they can find a way to efficiently renovate homes at scale, that could save more than money, it could save marriages.

Go deeper

Brazil begins distributing AstraZeneca coronavirus vaccine

Containers carrying doses of the Oxford/AstraZeneca vaccine arrive in Brazil. Photo: Maurio Pimentel/AFP via Getty Images

Brazil on Saturday began distributing the 2 million doses of the AstraZeneca coronavirus vaccine that arrived from India Friday, Reuters reports.

Why it matters: Brazil has the third highest COVID-19 case-count in the world, according to Johns Hopkins University data. The 2 million doses "only scratch the surface of the shortfall," Brazilian public health experts told the AP.

Sullivan speaks with Israel's national security adviser for the first time

Israeli national security adviser Meir Ben Shabbat U.S. Photo: Mazen Mahdi/Getty Images. U.S. national security adviser Jake Sullivan. Photo: Chandan Khanna/Getty Images

U.S. national security adviser Jake Sullivan spoke on the phone Saturday with his Israeli counterpart Meir Ben Shabbat, Israeli officials tell Axios.

Why it matters: This is the first contact between the Biden White House and Israeli prime minister's office. During the transition, the Biden team refrained from speaking to foreign governments.

Biden speaks to Mexican president about reversing Trump's "draconian immigration policies"

Mexican President Andrés Manuel López Obrador. Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

President Biden told his Mexican counterpart, Andrés Manuel López Obrador, on a phone call Friday that he plans to reverse former President Trump’s “draconian immigration policies.”

The big picture: The Biden administration has already started repealing several of Trump’s immigration policies, including ordering a 100-day freeze on deporting many unauthorized immigrants, halting work on the southern border wall, and reversing plans to exclude undocumented people from being included in the 2020 census.