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JPMorgan is about to spend $1 billion on hundreds of rental homes across the US



This article comes from https://www.businessinsider.com/ and it talks about JP Morgan getting into the single family home investing business.

"A new joint venture between one of America's largest banks and a growing build-to-rent operator is the latest sign that big investors are undeterred by the volatile real estate market." 

The issue in real estate is not the market but the inventory. There are simply not enough homes to go around. You hear this almost daily in the news. People are finding it hard to buy or lease real estate.

I have a couple of people who call me on a weekly basis asking if I have any rentals coming up in their areas? They are simply trying to get a place to live in and cannot find one.

" Haven Realty Capital and JPMorgan Chase's asset management arm said they will invest up to $1 billion to develop build-to-rent single-family homes across the country, according to a November 15 announcement. "

Notice they are not buying duplexes or multiplexes, they are buying homes.  A lot of investors get caught up in buying income real estate only. JP Morgan understands that equity is a key component to making money. 

Homes do both income and equity. Basically both the short term and long term is considered by JP Morgan

". "Professional rental companies in some ways bring more efficiency and they might help solve affordability problems because of very high mortgage rates right now," Piskorski said. "A lot of people simply cannot afford to buy a home."

The word professional is the key word in that paragraph. Having a management company that knows how to keep properties collecting income is so important. A lot of the success of any real estate asset is the location and what type of tenants are generated from it.  

The better the location the more consistent and profit that will be generated from a property. The better the location the will also create better equity positions and be easier to manage.

JP Morgan and I see that single family homes are the most consistent income and wealth creating assets for the future.

Need great real estate? Call me (Brett) 216-703-5740 Fathom Realty or Whatsapp me

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