A private equity guy with $48 billion under mgt, single family homes. 120mm homes in US, 6mm already foreclosed, 6mm in the process. 2 mm / year new demand. Buying units below replacement cost. They own 8k units, 5 biggest cos have 50k units. 14% gross return, 6 % net. Will put them into Reits. Can't do it as an individual, they say, but not sure why you couldn't, not something I would want to do. Probably explains the cash offers in bigger markets. Phoenix is up 20%+ in a year.
Homes will be refurbished, seems CSTE would be a good bet as housing recovers. I'm not sold on this being the 20 yr trade. This real estate conversation was on Fast Money, they spent a few minutes with that and wanted to talk Google, Apple. Kind of like turning on ESPN and hearing about the Lakers latest travails all day.