Waypoint secures $65M to buy foreclosed properties

Foreclosed home
Foreclosed home

The Waypoint Group, a company that buys foreclosed homes and rents them out, has received a $65 million loan to expand in that sector, the Wall Street Journal reported.

The financing represents the first time a player in the foreclosure-to-rental industry has tapped debt markets, the Journal said. The deal should pave the way for Waypoint to expand its portfolio more quickly.

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Waypoint is in talks for additional financing with Citi that should close in the coming weeks.

Renting out foreclosed single-family homes is a relatively new area of investment that institutional investors have been clamoring to enter since its emergence, previous reports show. [WSJ] Guelda Voien