The Wall Street Journal reported on January 11, 2012 that GI Partners in Menlo Park, CA, plans to invest $250 million in an Oakland-based company that buys foreclosed homes at discounts and rents them out to tenants… The private-equity fund could eventually expand its investment to $1 billion over the next two years if the initial round is successful. “They seem to be getting the kinds of yields we need for our investors,” said Mr. Richard Magnuson, Managing Director of GI Partners.
Note: If smart money is buying foreclosed homes, because of the yield, shouldn’t you do the same ? … read more