HOUSINGNEWS REPORT
THE RISING ‘BIG MIDDLE’ OF SINGLE FAMILY RENTALS
why our franchise growth has been so strong,” he said, noting that the number of franchises under the HomeVestors umbrella has grown from 165 to 870 since 2009. Additionally, Hicks said that an increasing number of properties sold by HomVestors franchises are going to other investors rather than to owner- occupant end-users.
The increased interest in real estate investing by novice real estate investors, in part enabled by access to the efficient financing options available, is cause for some concern for Nahon, the midsize
“We were selling more than half to end-users a few years ago, and now we are selling more than half to other investors,” he said, noting that HomeVestors franchises combined are on track to purchase about 9,000 properties in 2017. “There is a huge interest in people wanting to be landlords, wanting to buy investment properties.”
investor planning to migrate from Florida to Midwestern markets.
“There’s a lot of people that are trying to buy houses for rentals and flips,” he said. “When we are evaluating a flip house, a $500,000 to $600,000 house, and the lady who works at the Thrifty Car Rental is walking the house, trying to buy it at the same time as us — that could be a small warning signal for us.” Build-to-Rent Strategy Emerging Although still evolving, the more mature financing options that have emerged in the SFR space over the past five years are now laying the groundwork for a shift in strategy
“The last housing boom was fueled by the easy money. Every economist I talk to says how hard it is to get money has helped keep this housing boom in check. Now it’s getting easier for investors to get money, which might be the scary part.”
DAVID HICKS CEO, HOMEVESTORS
FORECLOSURE RATES BY LENDER PCT OF LOANS IN FORECLOSURE
1.40%
LENDINGHOME FNDG
0.74%
CASCADE LAND HOME FINANCING
0.72%
CASON HOME LOANS
0.59%
PATCH OF LAND LNDG
0.55%
5 ARCH FNDG
0.40%
ALL LENDERS
PRIVATE INDIVIDUAL
0.34%
GENESIS CAP MASTER FUND
0.24%
0.05%
LIMA ONE CAP
ANCHOR FNDG
0.00%
10
NOVEMBER 2017 | ATTOM DATA SOLUTIONS
Made with FlippingBook Online newsletter