I believe the single-family rental market remains the single best risk-to-reward. It’s no secret that Wall Street is bullish on real estate. Housing stocks have surged over the past year, many teetering on the edge of overbought, and billionaire investors like Warren Buffett have been exceedingly vocal about the investment opportunities brick and mortar properties have represented. Private equity firms and hedge funds have been sinking billions into single-family rentals, buying distressed homes off of banks’ balance sheets in discounted bulk. We are among investors buying distressed properties in the Greater Phoenix area after those institutional buyers helped send property values surging in hard-hit markets like this one. That demand, along with low mortgage rates and a growing economy, is now fueling a recovery in the sixth-largest city in the U.S. as it joins the housing resurgence that already has bolstered much of the country. Those hard-hit areas are seeing some improvement recently, but they have a way yet to go, and they’re in a really big hole. That leaves plenty of room for smaller investors. Residential real estate was, is and remains the next major opportunity for real estate investors. Sales demand is rebounding as buyers take advantage of low mortgage rates before expected increases as the Federal Reserve unwinds its stimulus program aimed at reducing borrowing costs.
American Realty Partners, LLC