I'm sure there's a Bank of America punchline in there somewhere.Are there any publicly held REITs that purchase large quantities of single-family homes?
I'm sure there's a Bank of America punchline in there somewhere.
The National Association of Real Estate Investment Trusts (NAREIT) will be happy to help you fulfill your ambition. They like lazy investors. However REIT funds tend to concentrate on apartments and mobile homes... which technically are single-family but perhaps not what you had in mind?
I've seen several privately-held REIT companies starting up operations that loosely translate to "We buy houses for cash!" billboards and bumper stickers. The difficulty is what most professional landlords have already discovered- landlording single-family homes does not scale as well as apartments or as cheaply as trailer parks.
However you probably have at least one REIT entrepreneur in your area looking for "private investor" funds.
What got me thinking about this is that there now seems to be a fair amount of opportunity in my local real estate market (Minneapolis) for investors who aren't as lazy as me.
My buddy owns a duplex in south Minneapolis that he wants to sell, but it sounds like the market is bad enough that he's better off keeping it (which is very inconvienent for him family/work-wise). There are several similiar duplex's in the area that are priced so low that they would cash-flow enough to interest even a lazy bum like me.
I'd like an option to buy a publicly traded REIT that bought up stuff like this, but you're probably right that it doesn't scale to a size that makes being public feasible.
I'm reluctant to dive into the private market as a noobie.
I guess I will just stick to stocks.
Buying/managing a well built not too old duplex is a pretty easy thing. If you are in a market where it makes sense go ahead. It's probably less risky than taking a drive in the country. Your real return will come when the dollars that have been turned loose in our banking system start to fly and inflation gets going. I looked into buying 2-4 plex, but it sucks in the Seattle Market. Sucks less than before, but not a viable deal for a hard nosed buyer.I'm reluctant to dive into the private market as a noobie.
I guess I will just stick to stocks.
Buying/managing a well built not too old duplex is a pretty easy thing. If you are in a market where it makes sense go ahead. It's probably less risky than taking a drive in the country. Your real return will come when the dollars that have been turned loose in our banking system start to fly and inflation gets going. I looked into buying 2-4 plex, but it sucks in the Seattle Market. Sucks less than before, but not a viable deal for a hard nosed buyer.
Ha
Financial markets aren't 100% efficient, but they are close enough that there aren't going to be any low-risk, low-effort investments that are likely to produce a hefty yield today. If any such investments existed, there would be enough money flowing into them that raised their prices to the point where it wasn't such a good deal any more -- especially in an environment where investors are desperate for *any* yield at all.It makes sense in this market, but it is work.
I was hoping for a more hand's off way of investing in this area, but it doesn't look like is a real option.
Financial markets aren't 100% efficient, but they are close enough that there aren't going to be any low-risk, low-effort investments that are likely to produce a hefty yield today. If any such investments existed, there would be enough money flowing into them that raised their prices to the point where it wasn't such a good deal any more -- especially in an environment where investors are desperate for *any* yield at all.