The Rentals Are Just Growing
Is it just my imagination or did the huge companies that gobbled up all the single family foreclosures and turned them into rentals have not sold very many?
Sure seems like that to me.
Remember the vast number of all cash offers?
Where are all these mystery houses? The buyers bundled them and turned them into bonds for investors.
What is a poor small time owner to do?
Just Saw This Interesting Article In My Favorite Newsletter, “The Kiplinger Letter.”
Look for more of America’s single-family homes to be rented, not owned, in the years to come. The number of households that rent is growing faster than those than own. And the growth isn’t coming just in apartments. Today, 13% of Americans live in rented single-family homes, up from 9% before the housing bust. Large investors who bought such homes to rent during the crash now want to expand into markets outside the hard-hit Sun Belt states, where they scooped up foreclosures.
The trend presents new opportunities for bond investors. Large landlords such as private equity funds will be issuing more bonds backed by rental payments in order to finance expansion plans. Also expect more real estate investment trusts as landlords spin off their portfolios of single-family rental homes into new REITs.
In regard to homes off the market for purchase. There is a company or companies I contract to that does all the notaries for bank loans, escrows, appraisals,loan officers, etc. The company is Servicelink, Black Night Financial, Fidelity Financial, use to be LSD. There is also a division that handles foreclosures for the banks,etc. That division owns approx. 34,600 homes nationwide. I believe there is a federal law, you would know, that requires you to not resale it for 3 years. Sincerely, Your old customer, Leonard Freedman, #00169600.
Ps, What do you think about after all these years the Dept. of Real Estate had to close and reopen as the BRE because the state took all their funds and never paid back?
There is no law that I know of about REO’s and Foreclosures. But if a holder contracted with someone to buy numerous units in one contract to turn into bond investments, I believe that the holder could write some conditions into the contract for giving a better price.
In all my talks with CalBRE and I have been fortunate to have sit down interviews with Wayne Bell and others in recent years, this idea has never been raised. Due to a couple rushes in licensing, DRE came up with some surpluses, and the state wanted them for their budget. However, DRE fought this and the decision was that thsi money was raised form License Fees and if there was a surplus, the fees for licensees would be reduced.
The change to Bureau was done so that all units in California that issued licenses would be under one Department, Consumer Affairs. There have been almost no consequiences to licensees for thsi move, and it is saving money because investigating costs are shared and attorneys work for all the groups under DCA. I believe that it was an excellent move by Brown, although he does get far out with his train, etc.
In North County Carlsbad and San Marcos areas there are hardly any available rentals. It seems that they get gobbled up quickly even at outrageous prices!
We are happy that our renters have been there since the close of escrow 5 years ago in August but then we have only raised the rent once in that time. We have very good renters and want to keep them and they prefer to rent and not own. Since the rents have gone up $600 in 5 years we may raise the rent $100 this year and see what next year brings….we have had expenses but not many for repairs up to this point so we are hoping to do a little better than a break even on the rent.