$1 trillion opportunity, or a failed housing scheme?
The US government is auctioning off 100s of thousands of foreclosed homes and some see this as the tip of a $1 trillion iceberg of foreclosed asset sales... several PE firms & hedge funds are getting ready
The buyers might also get help from the government to finance their acquisitions... kinda reminds me of P-PIP. From the article...
The Federal Housing Administration, which also will participate in the rental program, had 32,170 real-estate owned homes seized from borrowers, also known as REOs, as of Dec. 31, according to spokesman Lemar Wooley.
Possible aspects of the program include public-private partnerships to share the risk and profits, "seller financing" guaranteed by the government and rent-to-own opportunities for tenants, according to a November memo.
Thoughts? Are you guys ready to go long residential again? Should the gov't just auction this stuff without fancy structures and subsidised financing?
A bit of history.. listed REITs really took off as an investment vehicle from 1992 onwards, a few years after the 1989 real estate/housing crash.