By Graham Gochneaur, Founder and CEO of GVG Capital, LLC
Institutional funds started purchasing single-family rentals soon after the 2008 financial crisis and the collapse of the housing market. In the last decade, these funds have made huge inroads into the single-family rental (SFR) market, which is diversified but growing at a steady pace. Institutional funds have been purchasing thousands upon thousands of SFRs in the wake of post-2008 price drops, establishing an increasingly significant presence.
Since purchasing my first investment property in 2006, I have watched the single-family home market go through significant changes, specifically the explosion of funds investment. Recognizing its impact on both the micro and macro markets of real estate as a whole, and the way it contributes to the current “bubble" in the housing market, I invested a lot of time developing a strong knowledge base. The presence of institutional funds in the SFR marketplace has had a significant impact on the real estate market at large. Read more.