Saturday, November 16, 2013

Palm Beach County rental income may grow corporate profits |

A trend that may be fraught with problems, corporations are buying up single family residential properties, bundling them and attempting to sell securities from them based upon the rental inncome. But these companies are used to managing multi-family properties, not many single family properties that may be spread out around a large geographic area. Click title for link to article. Here is one of the possible consequences:
“What scares me is these groups are not property managers, not of single-family homes, and they have never been property managers before, and I’m not sure they can do it now,” Johnson said. “I think I could do a two-hour class on problems with this investment.”
Corporations own hundreds of Palm Beach County single-family homes that they are renting out. They’ve recently started securitizing the rental income to sell as bonds.
Homes owned by corporate interests
Blackstone’s Invitation Homes, 715
Starwood Property Trust, 325
Southeast Florida Rental Housing, 145
American Homes for Rent, 80
FREO Florida, 45
Colony Financial, 43
Source: RealtyTrac, Palm Beach Post research