I was reading National Association of Realtors new today, when I came across an article titled...
Investors Jump in to Turn Foreclosures into Rentals
From the sound of this news... Investing into foreclosures to turn them into rentals is about to explode! Why do I say this? Because for this to be news, must mean that the reporting body is expecting a huge increase in this activity.
As a REALTOR, who once practised in Cleveland, Ohio, one of the hardest hit economies in the nation, I can tell you... Investors buying properties to turn them into rentals is nothing new.
If you are in a position to purchase distressed properties, and turn it/them into income properties for yourself, NOW IS THE TIME. Once the government puts their spin on this business, prices will probably start rising. Now is the time to buy!
If you would like to obtain a list of distressed properties in your local market, shoot me an email or give me a call directly!
Here is the article I read from NAR----------
Daily Real Estate News |
Wednesday, February 01, 2012
The government and private equity firms are gearing up to start
marketing foreclosed homes as rentals in an effort to help lessen the
downward impact foreclosures have on the price of nearby homes.Â
The Federal Housing Finance Agency plans to offer some of its 180,000
foreclosed homes through Fannie Mae and Freddie Mac to private operators
who will turn them into rental properties, Bloomberg News reports.Â
The Federal Housing Administration also plans to participate in a
rental program. In a November memo, it has suggested that its program
work with public-private partnerships to share the risk and profits, as
well as explore offering rent-to-own opportunities to tenants of the
Private equity firms are stepping up to acquire some single-family
homes to manage as rentals. GTIS Partners has already earmarked $1
billion by 2016 to acquire single-family homes to manage as rentals. GI
Partners also says it will invest $1 billion on rental housing.Â
â€œWeâ€™re starting to see this as a billion-dollar opportunity to buy
rental housing,â€ Thomas Shapiro, the founder of the GTIS Partners fund,
told Bloomberg News.Â
A few months ago, the White House solicited ideas from the public on
how to work a foreclosure rental program to get a better grip on the
governmentâ€™s foreclosure inventory. The White house says it hopes that
by turning some of the foreclosures that have dogged many markets into
rentals, it will be able to ward off any further drops to overall home
Source: â€œForeclosures Draw Private Equity as U.S. Sells Homes,â€ Bloomberg (Jan. 31, 2012)