HOUSINGNEWS REPORT
FEATURED ARTICLE
SINGLE FAMILY RENTAL PURCHASE TRENDS
Pct Non-Owner Occupied Single Famly Homes
Pct Institutional Investor Purchases
35%
9%
7.8% 7.7%
31.0%
8%
29.2%
30%
28.2%
27.1%
6.8%
29.2%
26.9% 25.9%
7%
25.4%
28.1%
6.4%
25.2% 5.8%
5.8%
25%
5.5%
6%
4.9% 5.2%
20%
5%
4%
15%
3%
10%
2.8%
2%
5%
1%
0%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2016
In early 2012, McBride left Carrington to co-found Colony American Homes, funded by private equity firm Colony Capital. Over the next few years, Colony acquired 20,000 homes, starting on the west coast, according to McBride. “And then we rapidly moved east. It was a lot of fun and it was very, very busy,” he said. “I think we acquired about 75 percent of those homes on a one-off basis at the trustee (foreclosure) auctions.“ But as the low-hanging fruit of foreclosures dried up and the stabilization of massive portfolios of rentals became a priority over new acquisition for large aggregators like Colony and Starwood Waypoint, both McBride and Beasley found new niches in the maturing single
family rental market. Both started new companies that provide services designed to help mid-sized and mom- and-pop investors take advantage of innovations brought to the market by the large aggregators. Investor Financing For All Folks In 2014, McBride helped launch Colony American Finance to provide financing specifically to residential real estate investors. “We realized that there was no scalable financing solution in the space,” said McBride, who now serves as the company’s COO. “We basically went from 0 to $2 billion in closed loans. We have 1,400 borrowers. So we’ve come a long way in about two years.”
We see a lot more opportunities from the smaller, mid-sized operators, and so that is where we are focusing our efforts: the broad base of the pyramid .”
Ryan Mcbride COO, Colony American Finance
ATTOM Data Solutions • P4
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