Here’s Why We Should Be Investing in Securitized Single Family Rentals, Because This Time, It’s Different, Right?
We should all know by now the only time the Big Boys let the little boys play with their “investment strategies” is when they are looking to unload them. If I remember correctly, during lead up to the housing crisis, everybody in the know was shifting their risks to the little guys while telling them it was gold, while in reality, it was dog shit covered in foil.
Now, almost a decade later, we are starting to see the same type of tactics again. I’m not saying that this is a salesman selling foil covered shit, but it sure smells that way.
Take a look at NHRC’s Report listing it’s pros, cons, opportunities and risks…
Washington, DC (June 8, 2016) – The National Rental Home Council (NRHC) and Green Street Advisors’ Advisory and Consulting Group today published an in-depth primer on the single-family (SFR) rental industry that, for the first time, details the investment thesis behind the institutional SFR business. The new white paper will provide potential investors and other interested parties insights into this growing market and an explanation of the relevant measures that are important for SFR investment. Its findings are based on data provided by NRHC members Colony Starwood Homes, Invitation Homes, Silver Bay Realty Trust Corp., American Homes 4 Rent, Progress Residential and Tricon American Homes.
Several key findings in the report point to continued growth in the SFR sector. For example, the study concludes that single-family rentals are likely to capture roughly 37% of the estimated 3.9 million new renter households coming to market over the next five years, which translates into approximately 1.5 million new units of SFR demand between 2016 and 2020. The report also finds that, assuming occupancy reverts to its historical average and rent growth matches apartments, revenue growth for the industry should exceed apartments modestly (3.0% vs. 2.7%) over the next five years.
A white paper, that makes it sound official. A white paper is an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing body’s philosophy on the matter according to Wikipedia. But, why am I still not convinced?
Oh yea… Guess it depends on who is writing them and what the intent is.
Everything should be just fine here though, because this time it’s different.
The white paper is available on the NRHC website here…
~
If you ask me, this report is just about the same “shit covered in foil” as was the AAA ratings on investments by the so-called ‘experts’ back before the financial crisis. Once again, it’s the same entities who will profit by this crap they are spouting as a means to brainwash the public in continuing to invest. It’s like seeing an old movie that has been remade – same story; different players but the outcome is the same. JMO.