Warren Buffet and Hedge Funds are Putting Landlords out of Business

Hedge Funds are taking over the real estate investing world. They're putting little landlords and wimpy wholesalers like you out of business every day. Don't believe me? Believe the Wall Street Journal, CNN, and Warren Buffett ... "The Next Big Thing on Wall Street" "The business of buying foreclosed homes, renovating and renting them out is morphing from a largely mom-and-pop business into the next big thing on Wall Street. Blackstone Group LP has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed homes ... fresh evidence that the purchase of foreclosed homes, which began as a mom-and-pop pursuit, is gaining legitimacy among the biggest private-equity firms." "A Land Grab Unlike Anything We’ve Ever Seen" "The Blackstone shopping spree, and those of half a dozen other big investment firms and hedge funds, could radically change the local home landscape, as big-money brokers compete with first-time buyers and mom-and-pop landlords over homes in tight supply. 'It's a land grab unlike anything we've ever seen," said Peter Murphy, CEO of Home Encounter, the largest manager of rental homes in Tampa Bay. "You're going to drive through parts of town and all of it is going to be institutionally owned.'" "Wall Street’s Hottest Investment Idea: Single Family Homes" "Large real estate investment trusts and private equity funds have generally focused on commercial real estate. That appears to be changing, and fast. Wall Street's hottest investment idea is now single family homes." "Faster Than Anyone Imagined" "Legendary investor Warren Buffett seemed to fire a starter pistol last February when he said he would buy 'a couple hundred thousand' homes nationwide. It's hard now to find a private equity firm on the planet that doesn't have a strategy in this space. The market is growing faster than anyone imagined." "Investors Raise $8 Billion for Acquisitions" "Larger Wall Street investors rushing into the market have raised between $6 billion and $8 billion, with the intent to acquire between 40,000 and 80,000 foreclosed homes in the months ahead." If You Can't Beat 'Em, Join 'Em This is not the end of the world; it’s the beginning of a new one. And the sooner you make the mental "switch" to this new reality, the better. Silver Bay Realty Trust, a public Minnesota trust, has spent $40 million buying 400 homes [the past few months] … American Homes 4 Rent, a Malibu firm led by the billionaire founder of Public Storage and backed by hundreds of millions of Alaskan oil dollars, has spent $80 million on 500 homes and counting … Fundamental REO, a New York fund led by former Goldman Sachs executive and subprime-mortgage mastermind Donald Mullen has dropped $10 million on 90 single family homes to date … American Home Real Estate Investment Trust in Atlanta, led by a CEO who began buying foreclosures from his living room, has paid $8 million for more than 100 homes and they're just getting started … Invitation Homes is spending an average of more than $800,000 A DAY on single family homes in west Florida. The shopping spree is part of its "bet on America" initiative, a $100-million-a-week gorge that has made the firm the "largest owner of individual houses" in the country This information is from CNN Money and the Wall Street Journal please verify for accuracy