Obama said private sector is doing fine & was slammed, he should read this at every stop he makes!
These greedy bastards are complaining that the market is recovering, making it difficult for THEM!!!
Private Equity Has Too Much Money to Spend on Homes
By John Gittelsohn - Jun 13, 2012 12:00 AM ET
Funds planning to invest more than $6 billion to buy and rent foreclosed homes are finding it easy to raise money. The difficulty is spending it.
The number of low-cost foreclosed homes coming to market has dropped, bulk sales have been slow to materialize and prices are recovering in markets such as Phoenix, making it hard for private-equity firms, hedge funds and pension systems to buy as many homes as they need.
“The folks that raised capital are worried about under- accumulating properties and how to get capital out in an efficient way,” Richard Ford, a managing director in the real estate investment banking group at Jefferies Group Inc., said in a telephone interview. “A lot’s being raised. Less than $2 billion of institutional capital has been spent.”
Investors are trying to spend at least $6.4 billion on single-family rentals, including from funds such as Colony Capital LLC, GTIS Partners, KKR & Co., Oaktree Capital Group LLC (OAK), Och-Ziff Capital Management Group LLC (OZM) and the Alaska Permanent Fund Corp. They want to take advantage of U.S. home prices that are 35 percent below the 2006 peak and growing demand for rentals as the homeownership rate sits at the lowest level since 1997.
The largest pending bulk sale is a portfolio of 2,490 properties by Fannie Mae, the Washington-based mortgage-finance company controlled by the U.S. government. Final bids, announced in February, are still being reviewed.
more:
http://www.bloomberg.com/news/2012-06-13/private-equity-has-too-much-money-to-spend-on-homes-mortgages.html
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