Big boys entering Residential Foreclosure market via Hedge funds (again)

[Jerry K.]

Thought this was interesting to see in "Institutional Investor" Magazine. The banks and big asset managers are creating new private placement (Hedge) funds to enter the Foreclosure market. They want to acquire and rent out foreclosed homes.

http://www.institutionalinvestor.com/Article/3042037/Hedge-Funds-and-Alternatives-Hedge-Funds/Big-Asset-Managers-Eye-Opportunities-in-Foreclosure.html?ArticleId=3042037&LS=EMS665995

[Bill Gulley]

I guess you'd need to believe first that there are only limited things in this world to own and that it's the game of owning all you can get, the ultimate goal of owning it all, while no one will, it's a goal. I don't want to get into politics, so I won't, but there is only so much wealth to be had. :)

[Chris Martin]

See also other BP threads that are similar. AH4R (American Homes for Rent) has announced their IPO as was discussed in the current topic. See #6 in the link I provided above.

Keep in mind their expenses are over 100% of rent revenue from the S-11 registrations I've seen. And that's with $0 debt. The "plan" is to get a 6%-8% return as a tax-advantaged REIT. Compare (apples to apples) that to 50% that the average BPer looks for in rentals.... My take: It's a new ball game based on appreciation. Says so in their S-11s.