From the NY Times: As the foreclosure crisis grinds on,
knowledgeable, cash-rich investors are doing something that still gives many
ordinary Americans pause: they are leaping headlong into the housing market.
And not just into tricky mortgage investments, collateralized this or
securitized that, but actual houses.
A flurry of private-equity giants and hedge funds have spent
billions of dollars to buy thousands of foreclosed single-family homes. They
are purchasing them on the cheap through bank auctions, multiple listing
services, short sales and bulk purchases from local investors in need of cash,
with plans to fix up the properties, rent them out and watch their values soar
as the industry rebounds. They have raised as much as $8 billion to invest,
according to Jade Rahmani, an analyst at Keefe Bruyette & Woods.
The Blackstone Group, the New York private-equity firm run
by Stephen A. Schwarzman, has spent more than $1 billion to buy 6,500
single-family homes so far this year.... .
Wait,,,read more at http://www.cnbc.com/id/100293192
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