It was notable in the years after the
housing collapse that the composition of investors in single family real estate
changed drastically. Long the providence
of small investors – individuals who purchased a few properties to either flip
or rent out for long-term income – the avalanche of foreclosures and plummeting
prices suddenly lured in both the types of institutional investors who traditional
owned large apartment complexes and those investors who had never before considered
residential real estate for their portfolios.
Some investors were encouraged to become
landlords by lenders or guarantors such as FHA who suddenly found themselves
owning thousands of single family homes.
They encouraged bulk purchases and in some cases facilitated them by
bundling homes into geographically cohesive packages for sale at auction. Other investors partnered with local
property management companies to acquire and manage properties in smaller