Right as housing prices bottomed out around January 2012, large institutional investors began buying distressed properties in regions hit hard by the foreclosure crisis; they’ve purchased at least 200,000 to date.
In only a year, private equity giant Blackstone Group went from owning no single-family rental properties (SFRs) to being the U.S.’ single largest landlord.
Now, several companies, including Blackstone, are packaging their SFRs into bonds similar to the mortgage backed securities that fueled the financial crisis.
Like those securities, SFR bonds are backed by homes; but this time rental payments, rather than mortgage payments, pay the interest. Securitisation frees up money, allowing big buyers to purchase more properties with less capital by increasing their leverage – and risk.
via Wall Street Sets Its Sights on Renters | Inter Press Service.




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