Jason Hartman reports from the 2018 IMN conference with guest Robert Nickell, as the two discuss the latest in real estate investing. Specifically they look at the impact of institutional investors and “iBuyers” on the market today and how the massive influx of cash has created more stupid money than usual.
The rate of iBuyers continues to grow as more and more capital is raised, and all of that money is driving up home prices to the point where the “built to rent” phenomenon is making more and more sense.
[3:10] Fragmentation has kept the big institutional investors out of single family real estate investing, but the direction currently is leading them in to the market
[6:51] The impact of internet real estate companies
[12:10] Many of these iBuyer platforms and institutional investors are raising tons of money, but aren’t actually making any
[17:02] The deal rarely looks great when you buy it, it looks great in the future
[17:30] The rate that iBuyers are purchasing is driving up prices
[20:20] Some investors get rid of their bad properties by simply selling them to iBuyers
[22:15] The build to rent phenomenon
[24:46] Property Profile