RIVERSIDE, Calif. — At least 20 times a day, Alan Hladik walks into a fixer-upper and tries to figure out if it is worth buying.
Monica Almeida/The New York Times
Alan Hladik, inspecting a home in California, uses an iPad to calculate the cost to renovate homes for rentals.
As an inspector for the Waypoint Real Estate Group, Mr. Hladik takes about 20 minutes to walk through each home, noting worn kitchen cabinets or missing roof tiles. The blistering pace is necessary to keep up with Waypoint’s appetite: the company, which has bought about 1,200 homes since 2008 — and is now buying five to seven a day — is an early entrant in a business that some deep-pocketed investors are betting is poised to explode.
With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.
But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.
To Read the article in it's entirety click:
Thanks for the opportunity to win your business, I intend to earn it!
Property Executives Realty
900 Crestview Drive Suite 120
Hudson, WI 54016
Cell: (612) 703-2833
Office: (715) 381-8297
Fax: (715) 808-0619
"Providing Exceptional Service That Will MOVE You"