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NAR News (National Association of Realtors / 전미 부동산 중개인 협회)

Money-making strategy: Buy up homes, rent them out? – Florida Realtors News * coral springs real estate jennyforhome *

* coral springs real estate jennyforhome *

NEW YORK – July 25, 2012 – Investment firms, hedge funds, private equity partnerships and others are turning to a new real estate investment strategy that they believe makes money: Buy up single-family homes in bulk and rent them out for profit.

Their main focus has been buying up foreclosures, snagging them at big discounts, fixing them up, and then taking advantage of the hot rental market.

For example, the private equity firm Blackstone Group in the past year has bought up 2,000 single-family homes at about $300 million. Fortune Magazine calls it “one of the biggest piles of homes ever intentionally put together by an institutional investor.” But, Fortune says, it’s likely not even the largest one nowadays.

The number of homes that these firms are buying all at once differs from most smaller landlord operations in previous years. For example, Kenneth Rosen, a UC Berkeley professor, told Fortune that he’s aware of about two dozen investment funds who are buying up single-family homes and hoping to own up to 10,000 homes across the country.

These investors aren’t buying up in bulk and waiting for home prices to rise either, but their wealth-building plan relies on renting the homes out for a profit. They plan to sell only when the economy fully recovers.

According to a report from Goldman Sachs, investors may stand to generate 8 percent investment returns by purchasing and fixing up, and then renting out homes.

However, Matthew Desmond, a Harvard professor, says he’s concerned these investment firms will drive up rental prices on homes. Others are also concerned that the investment firms won’t be able to adequately maintain all the properties they own.

Source: “Wall Street’s Hottest Investment Idea: Your House,” Fortune (July 24, 2012)

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* coral springs real estate jennyforhome *

About jennyformiamihome

성심껏 도와드리겠습니다. 연락주시면 바로 상세히 답변드립니다. Jenny Shin / 신정미 부동산 (Broker's Real Estate) 남부 플로리다 마이애미 지역 한인 부동산 주택매매 렌트 싱글하우스 타운하우스 콘도 브라워드 카운티 마이애미 데이드 카운티 포트로더데일 웨스턴 코랄스프링 도랄 Rent or Buy single house, town house and Condo Miami Dade County / Broward County, fort lauderdale, coral springs, copper city, weston, doral 1398 SW 160TH AVE. SUITE 105 Weston, FL. 33326 Direct : 954-551-0236 Office : 954-384-1616 Fax : 954-697-0447 E-mail :


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Jenny Shin / 신정미 부동산
(Broker's Real Estate)
1398 SW 160TH AVE. SUITE 105
Weston FL 33326
Direct : 954-551-0236
Office : 954-384-1616
Fax : 954-697-0447
E-mail :


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