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The new hot items - securitizations of U.S. single-family rental properties - may be unable to...

The new hot items - securitizations of U.S. single-family rental properties - may be unable to get top credit ratings from Fitch, the agency identifying a number of performance/data issues (mostly relating to short operating histories). A number of firms - KKR, BX, TWO, OZM among them - have joined the rush to get into the residential landlord business.
Comments (4)
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    So the next bubble continues to form: residential real estate. Eventually, a glut of supply will erode profits which will lead to the inevitable collapse. Tricky to get out of rental assets very quickly. This sure thing will play out like all previous sure things.
    8 Aug 2012, 12:53 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    LOL - really, securitization of rental properties; because MBS worked so well
    8 Aug 2012, 12:59 PM Reply Like
  • casca123
    , contributor
    Comments (227) | Send Message
     
    I was in the single family rental business for many years in Houston TX. The banks there tried renting single family property in the eighties and got their clocks cleaned. Single family doesn’t lend itself to being run by a large corporation. These companies better hope that price inflation happens cause that’s the only real way to make money on single family.
    8 Aug 2012, 01:17 PM Reply Like
  • don_b
    , contributor
    Comments (35) | Send Message
     
    Thankfully I'm out of house rentals and only rent land now. I haven't seen anything on how TWO is handling their rentals but I would guess the day-to-day is farmed out to property management companies local to the properties.
    8 Aug 2012, 02:50 PM Reply Like
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