Investing in Bulk: The Costco of Real Estate! ? Online Rental ...

It?s no secret to readers of this blog or basically anyone that?s picked up a newspaper in the last 10 years, that the housing market we?re currently facing in the U.S. is virtually unprecedented.? After the housing collapse, many Americans found themselves forced to move out of foreclosed upon homes and, even as the market improves, with credit that is simply not good enough to buy a new home.? This has lead, of course, to a boom in the rental market, which has in turn lead to some surprising investment moves by companies who want to take advantage of this climate.

For instance, a recent article in the New York Times describes Waypoint Real Estate Group, who has a number of offices and inspectors with the sole focus of buying homes that are in foreclosure, fixing them up and marketing them as rental properties.? But Waypoint isn?t doing this in the way that an individual would go about becoming a landlord.? Instead, they?re purchasing homes on a massive scale, with their current operation snapping up five to seven homes every day, mainly through bank auctions.? The homes are bought only after putting some numbers into their proprietary algorithm to determine if the place is actually worth the investment at which point they are bid on and renovated to bring them up to a rentable state.? Waypoint even offers current occupants, the victims of foreclosure, the opportunity to stay in the house and rent it from them once the renovations are complete.

Real Estate experts and economist have mixed feelings about the future of this kind of project, but the fact remains that Waypoint is committed to seeing returns on these properties.? Regardless of what this may mean for local communities (where it could see property values go up initially as fewer homes stand vacant), it does mean that there are going to be a number of new property managers and landlords coming into the game with the aim of earning around an 8% return on their investment in just the first year.

While we can?t say for certain yet whether this influx of new rental property will be a good or bad thing, we can say that Waypoint and other companies like them are going to need to go beyond a real estate estimating system once they become landlords.? Having a great rental property, with new appliances and attractive landscaping, is just one piece of the puzzle.? What they?ll need next is an effective and efficient way to manage the rental applications and leases at all of those properties.? The company plans to buy between 10,000 and 15,000 new properties by the end of next year and must have a plan in place for managing them once all the renovations are complete.? An online rental application coupled with an online leasing system, like that offered oh-so-awesomely by the team here at Rocket Lease, would be a great start for Waypoint and their brethren.? We know that Rocket Lease is a great tool for an individual landlord, but there?s no reason that it can?t help out the real estate fat cats, too!? By allowing themselves to easily track their rental applications and have all their leases in one easy to access place, these companies will be able to better serve their tenants and the communities where their properties exist.

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