Posted on 10/04/2012 10:38:03 AM PDT by ruralvoter
Blackstone Group LP BX +2.42% has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed houses in eight metropolitan areas, according to people briefed by Blackstone.
The firm also is finalizing a loan for at least $300 million from Deutsche Bank to support this business, these people said. (SNIP) But Blackstone, one of the biggest buyout firms in the world, has been able to muscle its way to the front of the pack by taking advantage of the $13.3 billion property fund it closed last month, the largest of its kind ever raised, and has already spent about one-third of it, say people who have spoken with Blackstone. It has paid an average of about $140,000 for each home in Phoenix, southern and northern California, Atlanta, Miami, Tampa and Chicago. Like other investors in this market, the firm is planning to fix up the homes, rent them and eventually sell them after the market rebounds.
(Excerpt) Read more at online.wsj.com ...
Related FR thread: http://www.freerepublic.com/focus/f-news/2934874/posts
Here is an article from July 2012 about this bundled sell off of real estate around the country:
Obama Administration to Sell Foreclosed Homes To ‘Vulture Capitalists’
Political payolla to big time politically connected investment conglomerates ... I’d love to know who they donate to.
Meanwhile, individual small time investors are cut out of the market from acquiring a small portfolio of rental homes ... can’t even get close.
Thanks!
I’ve been looking into this issue for almost 2 years now.
I wish Romney would hit Obama with this ... catering to “the rich” with government owned properties.
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