Chicago, IL (PRWEB) May 19, 2014
American Homeowner Preservation Founder and CEO Jorge Newbery participated on the Managing Tenants panel at IMN’s second annual Spring Single Family Aggregation: The REO-To-Rental Forum, held in Boca Raton, Florida on May 13 - 15. The forum explored many topics pertinent to the nascent institutional single family rental market. This sector has flourished in the last two years as 90,000 homes around the country have been purchased by aggregators at a cost of just over $15 billion. Components of the sector's growth include the millions of foreclosed homes offered for sale and the millions of former homeowners who have been foreclosed on and are now becoming tenants.
The Managing Tenants panel was moderated by Christopher J. Crippen, Fund Manager of US Residential Asset Fund, and also included Yanir Ram, Chief Financial Officer of DRI Holdings, Michael Jordan, President of Income Source Properties, Richard Koch, Senior Vice President of Morningstar Credit Ratings, and Brandon Kirkham, Senior Vice President of VRM Mortgage Services. Panelists explored problem tenant management, eviction policy, managing in low-to-moderate income communities versus higher income neighborhoods , training tenants with incentives and disincentives, repair time goals vs. reality and new tenant-landlord law issues. Newbery drew laughter when he recounted a Google ad for a House Flipping course which featured a man reclining on the beach with a laptop. "No one will succeed flipping homes or building a REO to rental portfolio if they are running their business from the beach with a laptop. Renting single family homes is not a hobby or something to do for fun. This is a business - treat it as such."
Newbery is not a fan of the sector due to the socially negative impact of facilitating the transfer of wealth from the Main Street America families to Wall Street backed firms. "Home equity has historically been a wealth creator for American families of all income levels, but facilitating the mass transition from homeowners to tenants with no triggers to return to homeownership has long-term negative consequences for our country," Newbery said. However, Newbery acknowledged that occupying vacant homes is a short term social positive. "Any occupant is better than having a vacant home," said Newbery. "Depending on the area, vacant homes can be magnets for crime and blight a community. If you've ever lived near a vacant home, you know it's definitely less comforting than having a neighbor, even one you don't really like."
American Homeowner Preservation started in 2008 as a 501c3 nonprofit and now operates as a socially responsible hedge fund powered by crowdfunding. AHP purchases pools of nonperforming mortgages from banks at big discounts and offers sustainable solutions to homeowners to keep them in their homes. To learn more about AHP, visit https://ahpinvest.com, call 800-555-1055 or email info(at)ahpinvest(dot)com.