Wall Street Journal (08/06/08) P. C1; Corkery, Michael
In the past, mom-and-pop landlords accounted for a majority of foreclosure sales, but substantial home price declines in areas with robust rental markets have attracted institutional investors. Silver Portal Capital LLC, for instance, already has raised three-quarters of the $150 million it plans to spend on 1,500 foreclosures in the San Diego area during the next year. Silver Portal managing principal Burl East says the homes will be rented to teachers, police officers and other essential workers earning the city's $68,000 median income, and he expects the firm to turn a profit by reselling the homes in about five years. While apartment REIT Camden Property Trust considers amassing foreclosed homes to rent in such markets as Orlando where it already manages scores of apartments, CEO Richard Campo expresses concerns about losing money if rents fall because of an economic recession.
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