'Turnkey model' for bulk REO sales a win-win for contractors, community

Tennessee firm manages rehab and renting for hundreds of homes

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In a number of cities, especially those hard hit by the recession, investor groups have swooped in, buying up hundreds of REO properties as quickly as they can be located. To some observers, this appears to be problematic, because the new owners won’t be living in those houses and renters can destabilize a neighborhood.

Then there is the issue of whether investors are simply being predatory, stealing away these busted residences before anyone else might consider a purchase because they have raised the capital and pretty much can call the shots.