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Beware when Wall St says: "This is a largely untapped opportunity in a huge potential market"
It means that banksters and financial industry con-men are ready to crash the economy yet again. And it will happen.
http://www.bloomberg.com/news/articles/2015-08-24/blackrock-said-to-start-financing-rental-home-investors
BlackRock Said to Start Financing Rental-Home Investors
August 24, 2015 — 5:00 AM EDT
BlackRock Inc. is the latest company planning to finance investors who buy single-family homes, capitalizing on soaring rental demand as the U.S. homeownership rate sits at a five-decade low.
BlackRock, the world’s largest money manager, will buy loans from a network of partners that offer financing to the firm’s specifications starting as soon as next month, said two people with knowledge of the plans, who asked not to be identified because the information is private. Its lending partners also will offer funds to renovate homes that will become rental properties, one of the people said.
BlackRock joins Cerberus Capital Management, Blackstone Group LP and Colony Capital Inc., which have been competing to finance smaller landlords of the 14 million rental houses across the country and bundle the loans into bonds to juice returns. The new type of debt may make even more money available to single-family home landlords as many Americans struggle to get mortgages and opt to rent instead.
“The market could certainly bear to have more entrants,” said Ryan McBride, chief operating officer at Colony American Finance LLC, an affiliate of Colony Capital. “This is a largely untapped opportunity in a huge potential market.”
BlackRock Said to Start Financing Rental-Home Investors
August 24, 2015 — 5:00 AM EDT
BlackRock Inc. is the latest company planning to finance investors who buy single-family homes, capitalizing on soaring rental demand as the U.S. homeownership rate sits at a five-decade low.
BlackRock, the world’s largest money manager, will buy loans from a network of partners that offer financing to the firm’s specifications starting as soon as next month, said two people with knowledge of the plans, who asked not to be identified because the information is private. Its lending partners also will offer funds to renovate homes that will become rental properties, one of the people said.
BlackRock joins Cerberus Capital Management, Blackstone Group LP and Colony Capital Inc., which have been competing to finance smaller landlords of the 14 million rental houses across the country and bundle the loans into bonds to juice returns. The new type of debt may make even more money available to single-family home landlords as many Americans struggle to get mortgages and opt to rent instead.
“The market could certainly bear to have more entrants,” said Ryan McBride, chief operating officer at Colony American Finance LLC, an affiliate of Colony Capital. “This is a largely untapped opportunity in a huge potential market.”
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