Single family rentals, an asset as old as the hills but only recently recognized as an asset class, are attracting attention from private equity investors who want to go beyond owning large rental portfolios.
The space got crowded, but now we are entering a more healthy market, and there just isn’t room for everyone in the new normal. I spoke to a great audience of REO brokers this morning at the National REO Brokers Association conference and was very enthused about their response to the information I am about to share.
America’s No. 1 homeowner is not an owner-occupant, but one of the world’s largest and most successful private equity companies — Blackstone Group. In the past couple of years, as the pace of Blackstone’s acquisitions has slowed, some have speculated that the trend is winding down, but it’s not. It’s just shifting form.
There is a class of homeowner in America that is neglected by our industry. They own a type of property that has a very particular benefit to a specific kind of buyer, but most of the practitioners in our business don’t know what to do with it. We were able to attract and capture these sellers’ listings under circumstances that break all the “rules” of what is supposed to be possible.
When you hear the word “investors” in the context of real estate, what image do you conjure up in your mind? Chances are, you envision a bottom-feeding foreclosure vulture who just finished attending a seminar on getting rich quick and wants to use the two nickels he has to become a millionaire by midday.
In the last three years, a new class of homeowner entered our business. They are the largest in history, and they represent the beginning of something much more important to come.
If you owned a restaurant and you wanted to double your business, but you were only open for dinner, what would you do? If you are a real estate professional who only lists and sells houses for owner-occupants and you wanted to double your business, what could you do?