Large volume property investors

5-22-2014: Large investors are reaping greater rental returns than rising prices – for now…Estimated large investors bought >$500 million of properties per month in 2013 and bought $400 million per month this year. WSJ, 5-21-2014,C9.

Ever wonder who’s buying up all those foreclosures?

It’s not the little fish, but the big ones.

Get in line because your about 200,000 homes behind per this article.

Blackstone Group has purchase about 32,000 homes for $5.5 Billion; American Homes 4 Rent bought about 19,000 homes for about $3.3 Billion; Colony American Homes bought about 14,000 homes for $2.2 Billion; Silver Bay Realty bought about 5,500 homes for $580 million; and Waypoint Homes bought about 4,500 homes for $730 million.

Why? For securitization of the buy to rent portfolio (pool of assets)…to sever into other layers/bonds that are then sold to other investors – but at what return rates?

Unknown at this time, but I imagine it will be profitable…Duh!

Update 8-29-2013: Blackstone Group is buying 80 apartment complexes (about 30,000 units) in Atlanta, Dallas, Houston and other markets for about $2.7 Billion banking on the slowdown of first time home buyer market due to tighter mortgage qualification requirements and lower FICO scores that first time buyers usually have. Source: WSJ,8-13-2013, C1

Source:  Wall Street Journal, 7-31-2013, Page C6.



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