It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Dan Magder recently gave up a top job with private equity firm Lone Star Funds to strike out on his own and become a landlord.
He's joining a growing list of big and small investors who see fat profits to be made in renting out foreclosed homes, especially now the U.S. government is moving ahead with a trial project to sell big pools of single-family homes that Fannie Mae currently owns in some of the hardest-hit housing markets.
Investors seeking higher yields are drawn to foreclosures because the rental market is red hot.
Critics, meanwhile, contend the federal government is fostering a transfer of wealth of sorts by selling big pools of foreclosed homes to big fund investors and high-net-worth individuals. There's also concern that some of the players who helped create the housing crisis will now benefit by buying foreclosed homes at a steep discount.
Originally posted by magma
It is more economical to rent a house than it is to pay a mortgage. As a consumer you can rent a house for less than a mortgage repayment. Sure you do not own the property at the end of 25 years of mortgage repayments, but the extra cash you have in your hand at the end of the month means a better quality of life.
I know which one I chose.
The Federal Reserve took steps to encourage banks to turn more of their foreclosed homes into rental properties in new policy guidelines issued on Thursday (cont...)
For the second time in five months, Bank of America is tapping the red-hot market for foreclosed homes by seeking bids on a bulk offering of several hundred single-family homes.