Many have been Canadian, some from the east coast and a few from out west.
Most were buying individual parcels in the City to rehab and flip or rent out section 8 for a year or so and then flip. A couple only wanted to buy in the burbs because of horror stories they heard about dealing with the City.
I ran into an outfit about 3 years ago that was gobbling up distressed properties on the near west side to hold and then flip. Can't remember their name though.
Other than that I haven't encountered any mass purchases.
Warren Buffett on CNBC: I'd Buy Up 'A Couple Hundred Thousand' Single-Family Homes If I Could.
Thus, Investors are good for all of us assuming it does not create another bubble which I do not forsee in the near future.
Need I say more?
It is not just the hedge funds. Companies like the FLATS re-branding from Estate Properties is pooling investor money and buying up lots of building through out Chicago Land. Real Estate is on the rebound now is the time to buy and catch the steady wave up. This waive will be more realistic.
So if you are renting, go and buy if you can.
We get inquiries all the time from people who say they represent a fund with $10 mil or $20 mil to spend in the Chicago market, and yet you do not see any large bulk purchases once they get a look at the areas where there is the opportunity for this.
I work in Garfield Park and can tell you there is a ton of inventory there and no buyers in sight for foreclosures or finished product. I do wish there was, but these people are coming out of Florida, Nevada, California and Arizona, where the housing stock was newer and the market has had a more robust rebound that ours.
when they see the west and south side of the city, they are not motivated nor do they see the same returns based on income and re-sale.