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Private equity firms bet on converting foreclosures to rentals

Increasingly private equity firms are snapping up single-family and multi-family proeprties that have been foreclosed on across the nation, Bloomberg News reported.

For instance, Waypoint Capital, a firm based in Oakland, Calif. has $150 million in assets and is buying, on average, five more homes per day at auction. And Waypoint is able to offer 8 to 9 percent returns to investors, the firm told Bloomberg.

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“I never thought I’d be rolling up single-family homes,” Colin Wiel, a co-founder of the firm, told Bloomberg. “But the yields are awesome.” [Bloomberg News]

 

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