Single-family rentals, traditionally the domain of mom-and-pop investors, are increasingly being snapped up by real estate investment trusts, CNBC reported.
Investors are scouring the market for single family homes to buy, and sometimes turn their ballooning holdings into real estate investment trusts. These trusts employ teams to acquire, market and rent homes. Two REITs, Silver Bay Realty Trust and Altisource, recently went public.
“This is a generational opportunity to really institutionalize a business that’s been around for a very long time,” said Aaron Edelheit, CEO of American Home Real Estate Investment Trust, which has more than 2,000 single family rentals in its portfolio.
Before the foreclosure crisis, roughly 60 million single family rentals were on the market. A KPW report states that between $6 billion and $9 billion has been raised or committed to purchase assets, which would account for between 40,000 to 90,000 properties, or 15 percent of the total number of foreclosed homes. [CNBC] – Hiten Samtani