Meet the new landlord: Wall Street
Source: Los Angeles Times
Prepare to send your rent check to a Wall Street address.
After buying tens of thousands of single-family homes in beaten-down markets, major investment firms have quickly become major landlords — and they're in it for the long haul.
... Blackstone Group, the biggest player in the emerging industry, has already spent $5 billion through a subsidiary on 30,000 homes, according to the report Morgan Stanley published Wednesday. American Homes 4 Rent — an Agoura Hills company created by Public Storage billionaire B. Wayne Hughes — has spent $3.1 billion on a portfolio of nearly 18,000 homes.
... In what would be the first such security, Blackstone Group is reportedly planning to bundle monthly rental payments on about 1,500 to 1,700 of the homes it owns in a deal valued at $240 million to $275 million, the Wall Street Journal reported earlier this week, citing anonymous sources. Deutsche Bank, a major packager of risky subprime loans during the housing bubble, would structure and market the rental bonds to investors.
Read more: http://www.latimes.com/business/la-fi-wall-street-landlords-20130801,0,4294406.story
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