Wednesday, September 25, 2013
Unconventional Play on Rental Properties
Numerous companies are attempting to take advantage of the previously weak housing prices and the surging demand for rental properties. So far, all of the models are unproven as the complexity of managing houses with individual characteristics at a corporate level faces many hurdles to reach an efficient scale. The traditional model has been to purchase distressed properties in housing markets hit by the financial crisis and turn the houses into rental properties.
Altisource Residential (NYSE: RESI) purchases distressed mortgage loan portfolios with a strategy to work with borrowers to modify and refinance loans to either keep them in their homes or convert the unmodified loans into renovated rental properties.
Read the full article here.
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