Tuesday, July 24, 2012
Home price increases & Wall Street is buying single family homes now too
Fortune magazine also reports today that Wall Street is investing in single family homes. "In the past six months or so, a number of investment firms, hedge funds, private equity partnerships and real estate investors have turned into voracious buyers of single-family homes. And not just any homes, but foreclosures. Investment banks, who also want in on the action, are lining up financing options to keep the purchases going.
Take for instance private equity mega-firm Blackstone Group (BX). About a year ago, when the NY Observer profiled the firm's head of real estate Jonathan Gray, there was no mention of single-family homes or even that the firm was looking to profit from a rebound in the residential real estate market. Last week, Gray said Blackstone now owns 2,000 single-family homes." Link to full article