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The $5 Billion “Hedge Fund Secret” You Can Steal For Your Business

        

The Wall Street Journal just put out an interesting article about a company called Invesco putting $5 billion into a hedge fund that's purchasing single family homes.

And they're not alone. There's another $6.5 billion dollars targeted with other hedge funds doing exactly the same thing.

Now, why are these hedge funds going after single family homes?

Well, they've identified that they can get a cap rate of as much as 6.8%. That's the target rate that they're comparing to apartment buildings and commercial — which is like the low sixes.

So what they're saying is: we're going to make money on this. And we're going to rent these houses to millennials that are choosing not to become homeowners.

What we need to do as an industry, number one is to recognize that we should be investing in single family homes as well. But also we need to encourage everybody that's not a homeowner today to get into the real estate arena and buy their...

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