366,000 Single Family Homes Purchased by Institutional Investors Since 2011
Highest Rental Expense Ratio in Decatur, Ga; Lowest in Beverly Hills
IRVINE, Calif. – Dec. 18, 2013 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, and Pintar Investment Company, a leader in real estate investment acquisition and management, today released a white paper evaluating the red-hot Buy-to-Rent market in which institutional buyers backed by Wall Street hedge funds and private equity are snatching up thousands of single family homes as rental properties.
RealtyTrac Vice President Daren Blomquist on Friday discussed some of the high-level findings from the report on Bloomberg TV’s “In the Loop” program.
While the institutional investors have been quite adept at the acquisition phase of this phenomenon — more than 300,000 single family homes purchased by an entity with at least 10 purchases in a calendar year since January 2011 — it’s not quite clear yet how proficient these players will be at managing and maintaining thousands of geographically diverse properties across the country.
The white paper sheds light on how this nascent industry is dealing with this challenging new phase, providing real-life, market-by-market statistics on the varying expense ratios involved in managing different types of properties in different markets. It demonstrates how yields that look good on paper may not always play out so favorably when it comes to dealing with often-overlooked factors such as rent delinquency and collection issues and unforeseen maintenance.
RealtyTrac is the leader in housing market information including distressed and non-distressed sales and neighborhood data. Neighborhood data includes demographics, unemployment, schools, building permits, crime, environmental hazards, sex offenders, drug labs, etc. RealtyTrac has developed a full set of offerings to address the needs of SFR investors, including market comparison reports, investor activity reports, and property level reporting. RealtyTrac also provides bulk data license, custom reports, historical reports, and trends back to 2005. For more details, please call 888-974-2920 or go to data.realtytrac.com/sfr.
Founded in 2008, Pintar Investment Company offers property management and property preservation capabilities to investors with Single Family Rental holdings, including sourcing, acquisitions, diligence, renovation, maintenance, leasing, property management and dispositions. With its national operating platform, Pintar has acquired more than $1 billion in properties in the last 15 months for its partners, which include everything from institutional buyers to private multi-investor funds. Pintar has 5,000 homes under management and is poised to scale rapidly, acquiring as much as $60 million in properties in a single month. Its acquisitions group evaluates 1,000 to 1,500 properties a week. For more details on Pintar, go to http://www.pintarinvestmentcompany.com.
Jennifer von Pohlmann
949.502.8300, ext. 139
949.502.8300, ext. 107