Single-Family Rentals Only Marginally Impact Apartment Building Investments PNC EVP says. Video via Globe St.

Scott Bassin, EVP and head of multifamily for PNC Real Estate says single family rentals will only marginally impact apartment building investment because there is a certain group of people who want or need single family homes, and everyone else. See his comments in the Globe St. video from the NMHC Apartment Strategies Conference in Palm Springs.

Single Family Rentals only have small impact on Apartment Building Investment
Scott Bassin, EVP at PNC with Globe St. in Palm Springs

 

Zombie homeowners are 50% of the single family move up market and they can’t buy. Good for Apartment Building Investment?

Mark Hanson of MHanson Advisors, researchers and strategists focused on North American and Australian real estate and finance markets, has a very good piece out questioning the recent calls of a housing bottom. His research shows that 20-30 million current homeowners (half the market) either cannot sell and net enough for a downpayment on another house or could not qualify for a new mortgage if they did have a downpayment.

He also charts that out in relation to the over all supply:

Zombie housing supply creates opportunities for apartment building investment
Source: MHanson Advisors

Here’s Mark’s breakout of the zombies:

1)  “Effective” Negative Equity – 25 million borrowers / houses.  These borrowers are dead to the housing market, as they don’t have the equity to pay a Realtor 6% to sell and put 20% down on a new house.  They were once the most active participants, the repeat buyers. Now they are “zombie homeowners”.

2)  Impaired Credit – 28 million borrowers.  These are borrowers with Continue reading Zombie homeowners are 50% of the single family move up market and they can’t buy. Good for Apartment Building Investment?

The #Multifamily Asset Twilight Zone: In default but payments still being made. Opportunity or? Via @rshall03

A common theme adopted by the industry is that lenders continue to delay action on distressed assets for as long as possible.

The fact is that this scenario is borrower-specific. If a borrower is acting in good faith, the lender may allow the asset to continue operating, resulting in a commercial property “Twilight Zone.”

The Twilight Zone is made up of properties on which loans have defaulted or in which default is likely imminent, but the borrower is still willing to provide all available cash flow to the lender, even if it is not enough to cover the payments. The lender agrees to accept net rents and, in turn, keeps the building operational, albeit in a limbo period.

When the lender does finally pull the plug value opportunities can Continue reading The #Multifamily Asset Twilight Zone: In default but payments still being made. Opportunity or? Via @rshall03