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Rainmaker
1,554,939
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

No Bubble, but that doesn't mean no troubl with this trend.

Jun 12, 2021 08:35 AM
Ambassador
2,190,182
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

I hate that this is happening@

Jun 12, 2021 07:40 AM
Ambassador
3,350,589
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Until now, this is not something I was aware of.  With California home prices - most especially in my area - my sense is that my market would not be a good ROI for that strategy.  Yet, the investors pencil the numbers ... 

Jun 12, 2021 09:19 AM
Rainmaker
5,116,528
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have not seen that happening to this extent in my market. While I always get multiple offers from these companies, I've yet to have a seller accept those offers. Although the offers are cash, their offers are not usually higher than what I see from individual buyers.

Jun 12, 2021 08:06 AM
Rainmaker
1,202,572
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Foreign and Corporate investors should have limits as this is only part of a plan that has no good. Why is BG buying up farmland to become the largest owner of farmland in the country

Jun 12, 2021 09:28 AM
Rainer
381,637
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

Nope, no crazy stuff here.  No huge over list bidding wars, no foreign nationals buying property, no businesses buying entire subdivisions.  Hope it stays this way.

Jun 12, 2021 08:21 AM
Rainmaker
2,785,456
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Long term hold strategies are taking place and in this case, some investors/developers are intending to rent their products for cash flow. They get appreciation too! The watch word? BUY BUY and BUY

Jun 12, 2021 07:36 AM
Ambassador
3,590,566
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Yes I am aware of what's going on with buying up as many homes as possible. but not so much the pension fund aspect of it.  Just talked to several investors this morning and they are still going strong. On guy said he's bought about 30 so far this year. Now he wants one of mine. We'll see.

Jun 14, 2021 04:00 PM
Rainmaker
2,195,399
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Are they buying fully approved , but not built on yet  ? Or are they buying Developers out of Subdivisions that are underway 

Jun 13, 2021 07:04 AM
Rainmaker
5,245,484
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

This too shall pass and when it does the long term result will come forth!

Jun 13, 2021 04:24 AM
Rainmaker
5,773,250
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

We did sell to pension funds in commercial, however they were buying large office building with great tenants!  A flow of steady income was of paramount importance...That was then, who knows what the logic is now?

 

Jun 12, 2021 10:44 AM
Rainmaker
1,847,771
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

This has been going on for years & Candice just put in a link about Blackrock in the AR Peeps. These guys zip around the country picking up deals or in up & coming markets all the time.

.

Nothing new to see here. Sour grapes on your article - the one with the most money wins the house.

Jun 12, 2021 09:39 AM
Rainmaker
4,181,927
John Pusa
Glendale, CA

Hello Fred Griffin Tallahassee Real Estate it might have impact on some areas.

Jun 12, 2021 09:19 AM
Rainmaker
2,891,939
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Follow the money. I've been watching homes sales in my area. Institutional Investors, Private-equity firms are outbidding real buyers who want to buy homes to live in various communities because of schools, etc. Institutional investors buy, cosmetically fix, rent, sell more than double. There's a pattern, what it cost to update & sell for more is very costly for many homeowners, there are many seniors no longer able to keep up with the maintenance and don't want to be bothered with people coming into their homes and having to figure out what to do with their stuff, these Pension Funds & private equity firms make it easier to sell, hassle free. Very aggressive they are and persuasive too! Private investors are increasing the demand and have the power to outbid the average man, woman, whatever. Recently I went on a listing presentation and seller of an estate from out-of-state interviewed several real estate agents and a few investors. The seller gave all the comps I gave to her (probably others too) and she turned down all the real estate agent for a power house investor who didn't do CMA but took the work I did (others too) and made an offer seller couldn't refuse. As we know, Cash is King and who wants the hassle? The fast food concept has paved the way for fast home sales and quality doesn't really matter at all. There was a recent case in Houston, an entire community built by D.R. Horton (built for rentals) was bought up, swallowed up whole, lock, stock & barrel. Residential homes are going on the market and before most true buyers have a chance to see and decide, it's already sold, sight unseen. If this continues (which I think it will) it will be next to impossible for future generations to own. 

Jun 16, 2021 05:12 AM
Rainmaker
1,506,923
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Wasn't aware of pension funds, but back in 2009/2010 the Blackrock Group got huge amounts of funding (in the Billions) from the Obama administration to do the same thing all over California.  They drove up the prices considerably, paying WELL OVER fixed up market value for homes that needed full rehabs because money was no object to them.  Pushed many investors out of the market.  They turned them into "rental backed securities" (because mortgage backed ones did so well...) and were trading them on the stock market.

 

Given how much trouble many pension plans are in out here, I can see where this seems like a good idea to bolster their assets and have an income.

Jun 14, 2021 08:36 AM
Ambassador
6,424,867
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

We have perfomed appraisals of timber for several of them that were investing in large investment tracts.

Jun 12, 2021 10:04 AM