Two REITS Getting Buy on Single-Families Rehabs

I have been pretty open with my thoughts about the residential real estate markets. The bounce in prices has been sparked by heavy institutional buying of single family homes by REITs and hedge funds as rental property. Large funds like Blackstone and other private equity funds have been large buyers of property and several REITs have debuted this year. It is estimated that $18 billion was raised to buy single family properties and investors flocked to take advantage of the real estate collapse. So far they have been disappointed.

It seems that the managers and investors alike misjudged the time it would take to get the homes fixed up and rented. They were rebuying these houses in bulk usually from banks and mortgages companies and they were considered distressed properties. Many had been vacant for an extended period of time and were far from move-in condition. The anticipated flood of rental income and dividends has yet to emerge and investors have been dumping the housing REITs at a pretty rapid clip of late. Many of them are close to being a bargain for long term investors....581 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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