I am sure if you are involved in real estate investing, or not, most people took notice in the news these past weeks on the reports that over a Billion dollars in private funds has been spent in the last year in redsidential housing. Another Billion is heading to be spent to purchase foreclosures and REO properties by private Fannie Mae Partners over the current year coming. From a tax payer point of view, I like you hope these people know what they are doing, however the government does not have the track record of doing their home work, like private investors will.
Those who really know their markets with percision and mastery toward automatic appreciation should do well. Usually that is the way private firms scoop up billions!
February 03, 2012, 9:55 AM EST
By John Gittelsohn and James Nash
Feb. 2 (Bloomberg) — Fannie Mae’s plan to convert foreclosed homes into rentals through sales to investors hinges on offering concentrated packages of properties in areas such as Florida, Arizona and Southern California where a real estate recovery may happen soonest, according to prospective investors.
The mortgage agency, controlled by the U.S. government, is inviting investors to apply to become joint-venture partners in the first bulk sale of some of its 122,616 foreclosed homes. It disclosed few details of a plan that is part of a series of programs unveiled yesterday by President Barack Obama and aimed at lessening the impact of defaults on the housing market.
The portfolios of foreclosed properties will be geographically focused and consist of vacant or occupied homes, according to Fannie Mae’s website. Investors said they’re concerned that the first properties to be made available will come from the hardest hit areas of the U.S., which have limited appeal to investors because the prospect for population or employment growth restrain the outlook for a housing recovery.
“The question is how good those markets are going to be for rentals,” said Rick Sharga, senior vice president of Carrington Mortgage Holdings Inc., a Santa Ana, California-based property-investment company that announced a $450 million partnership with Oaktree Capital Management LP to buy and manage foreclosed homes as rentals. “The devil’s in the details and there’s nothing available now.”
Sales “significantly larger” than previous bulk sales will be offered to qualified investors who agree to be an equity partner with Fannie Mae, said the Washington-based agency, which has been under U.S. government conservancy since 2008. Details of the sales structure, such as potential financing or the division of revenue, weren’t disclosed in yesterday’s announcement.
Private-equity funds began focusing on bulk sales of foreclosures in September, when the Obama administration first invited ideas to convert to rentals some of the 210,000 repossessed homes in government agencies’ inventories. Carrington, which expects to raise about $1 billion for home acquisitions this year, already manages about 3,000 of 10,000 foreclosures with rental tenants that Fannie Mae owns, Sharga said.
GTIS Partners, a New York-based investment company, and GI Partners, a private-equity fund in Menlo Park, California, each announced plans in January to spend $1 billion on bulk-buying foreclosed homes as rentals. Financial firms such as Barclays Plc, Deutsche Bank AG and Wells Fargo & Co. submitted responses to the administration’s September request. Read More
Most of the private firms have access to tools that cue them in to when a market is showing signs of long term automatic appreciation that most individual investors do not have. You did notice that first sentence didn’t you?? “Fannie Mae Partners Seek Bulk Buys in Cities Headed for Recovery” That statement is matter of fact! They are not pulling a carnack the magnificent routine, they are quite sure of themselves in achieving appreciation. You can be as well. Sadly some still believe when the news anchor says the housig market has improved they think their home town market did too. I know you are not one who thinks all markets within the nationwide US housing market rise and fall together do you?? Well they certinally don’t. Heck, even the little guy can know what daddy big bucks knows, because finally there is a app for that! I am suggesting you take the time to investigate the tool they are using!
Right now there is market right here in Florida that we are looking to see long term appreciation move to a long term wealth building phase, and market buy signal ( it is still cooking tho). Want to know which one?? Well you can, in a little over a minute! You had better believe we use it! Check out the tool over on our strategy page, first and then I will tell you about the services we offer:
In the meantime find that RE market that is already at the long term wealth phase like the Fannie Mae Partners did! Now were cooking!
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