Bulk foreclosure sales possible

There's a new idea afoot in Washington: sell bulk lots of foreclosed homes to investors to create rentals. It's an interesting idea. There are a LOT of foreclosed homes that are currently just sitting on the market. There aren't enough individual buyers out there to purchase all these homes. There is definitely a market for rental properties though. All the owners losing their homes need somewhere to live.

One of the more interesting sections in the article is when the author discusses why more investors aren't purchasing homes. To quote:

"I think there is a fair amount of money in the wings waiting to buy, investors doing cash raises to buy properties on a large scale," says Laurie Goodman of Amherst Securities. "But that means they have to build out a rental organization; it means they build out a management company because if you're accumulating a hundred homes in Dallas that's very different than running a multi-family building."
A number of institutional investors have shown appetite and interest in bulk REO deals, according to officials, but the plan has to incorporate ways to help facilitate financing. That has been one of the biggest roadblocks to deals already in the works between hedge funds and the major banks. Sources close to these private bank negotiations say there is plenty of cash to buy properties, but building out a management structure for the rentals is pricey, and some investors are finding the math doesn't add up to make it worth their while."

What's that you say? Investors will need a management company if they suddenly acquire multiple homes. Provident Property Management is here to help. We can manage your properties whether you own one or one hundred.  Peruse our pricing structure, then contact us for more information!