What kind of cap rate for blackstone and the like?

[Pat Martin]

Just curious what kind of cap rate would one of these big investment companies make on their single family rentals? I am only getting about 8% after all expenses, capex and property manager. I feel I'm buying close to the best deals in town getting about the cheapest labor for repairs and getting market rent. It seems to me that with all their overhead they can't be getting that great of a cap. Thoughts?

[Walt Payne]

They are also going big into the areas they are going after, so economy of scale will apply.

Plus, think about where their money is coming from, and why. The thinking is get massive properties at whatever cost necessary because the bond market will soon go down the tubes. With all cash deals they will likely continue to cash flow. Not great returns, but safe. That is my take on it. It doesn't make sense otherwise.