Stephen Schwartzman, CEO and Chairman of Blackstone Group, tells CNBC that they aren’t steering away from the residential rental market. Their $3 Billion portfolio of residential property makes them the largest owner of homes in the country.
Of course their strategy like many other investors is not “fix and flip,” but to hold these properties as rentals. Schwartzman says, “It’s a good business for us. It's a new thing, but it's also good for America." He goes on to say that this is not the only opportunity for investment in this country.
He alludes to the soon to come energy boom and that the US will be able to produce energy at a lower rate than most of the rest of the world, which makes this a good place to start or move companies.
The group also wants to be involved in assisting young entrepreneurs in their potential ventures though the Blackstone Charitable Foundation and the Blackstone Launch Pad program. The private equity firm has put $1.4 million grant into a $50 million program geared towards 60,000 students which will result in a potential 300 new ventures in the next 5 years.
Schwartzman believes firmly that, "A good idea can still overcome regulations. Some of the regulations are needed and some are creating difficulty for businesses."
So to sum it all up, I guess Blackstone is about more than just REO-2-Rentals after all.
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