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Updated almost 6 years ago,

User Stats

723
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680
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Jonathan Taylor Smith
Agent
  • Rental Property Investor
  • Durham / Raleigh (Triangle), NC
680
Votes |
723
Posts

Did Invitation Homes and other institutionals get long term debt?

Jonathan Taylor Smith
Agent
  • Rental Property Investor
  • Durham / Raleigh (Triangle), NC
Posted

The article "When Wall Street Is Your Landlord" discusses how the institutional investors like Invitation Homes and others now owning many tens of thousands of single-family homes are trying to increase profits by squeezing tenants on repairs and all around lack of maintenance. They seem to be discovering that at scale, "Landlording is hard..." for thousands of spread-out and distinct houses.

So, did these Wall Street house buyers have the forethought to secure long-term debt? I know it was low-interest debt due to billions in loan guarantees from Fannie Mae, but was it also short-term? Will these loans start to come due over the coming few years - or were they smart enough to lock these homes up for 30 years? And if not long-term debt, what will happen when they must refi and rates are much higher? Will these homes start to hit the market again?

  • Jonathan Taylor Smith
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Blue Chariot Realty & Management
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