Seeking Alpha

Your new landlord: Wall Street

  • "It's gone from being good to being disturbing," says former Fannie Mae economist Thomas Lawler, of Wall Street's rush into the single-family landlord business as described by Bloomberg's Heather Perlberg and John Gittelsohn in a great read.
  • Blackstone (BX +0.1%) is clearly at the vanguard of the move, but it's joined by American Homes 4 Rent (AMH +0.5%), American Residential Properties (ARPI +0.1%), Silver Bay Realty Trust (SBY +0.2%), and a unit Colony Financial (CLNY +0.8%).
  • With easy and cheap access to capital, the Wall Street firms have become the gorillas in the single-family market, outbidding first-time homebuyers and maybe driving up prices towards another property bubble. And capital may be about to get even cheaper and easier thanks to Blackstone's recent raising of $479M through the securitization of rental payments on homes it owns. American Homes 4 Rent and Colony have their own securitizations in the works.
Comments (4)
  • Uncle Pie
    , contributor
    Comments (2661) | Send Message
     
    So much for the myth that the Fed's QE programs have benefitted ordinary citizens. The hedge and LBO fund tycoons are pretty much the only beneficiaries of Prof. Bernanke's experiment.
    20 Dec 2013, 06:56 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3311) | Send Message
     
    Wealth transfer.

     

    Mission accomplished.
    20 Dec 2013, 08:04 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3311) | Send Message
     
    How we have forgotten. (excess capital directed to housing)

     

    Housing is an expense, not a speculative asset class.

     

    Junior now has to subsidize the boomer's healthcare,
    (via Obamacare) and live in
    Mom's basement a bit longer it seems.

     

    Don't worry, Junior found a $9 per hr job at $TGT, to pay a $75K college debt over his lifetime. (all non dischargeable in bankruptcy)

     

    This is what recovery looks like. ($18T)

     

    Somebody needs to go to jail.

     

    Enjoy the ride while it lasts, because it will not end well.

     

    If you like your plan, you can keep it.

     

    PERIOD.
    20 Dec 2013, 08:15 PM Reply Like
  • txrehablady
    , contributor
    Comments (2) | Send Message
     
    We are watching the Rental marketplace here in Dallas/Fort worth for private investors. In a small zipcode there are 115 vacant rental homes $1200-2400 a month sitting idle. The investors out here are very anxious about what is happening. The REIT are dropping their rents and making rental concessions in order to get them rented but to no avail. There are also 600 homes for sales in the same zipcode and many of those homes that are rent are now also for sale. The bubble may have come to this area. One investor bought 70 homes in the area and they are ALL SITTING VACANT. Can someone tell me what is wrong here?
    21 Dec 2013, 11:12 PM Reply Like
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