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Investing in Crisis: The Methods, Strategies, and Expectations of Investors in Single-Family Foreclosed Homes in Distressed Neighborhoods

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  • Dan Immergluck
  • Jonathan Law

Abstract

In the wake of the U.S. foreclosure crisis, the magnitude of homes flowing into investor ownership since 2007 has been unprecedented. Based on interviews with investors and other key informants active on the south and southwest sides of Atlanta, we describe the key aspects of the business models of such investors, including their methods of identifying properties, determining acquisition prices and renovation costs, and managing properties for rent. We also examine their expectations for financial return, including the sensitivity of returns to market and property uncertainties. We conclude with key findings and some recommendations for policymakers.

Suggested Citation

  • Dan Immergluck & Jonathan Law, 2014. "Investing in Crisis: The Methods, Strategies, and Expectations of Investors in Single-Family Foreclosed Homes in Distressed Neighborhoods," Housing Policy Debate, Taylor & Francis Journals, vol. 24(3), pages 568-593, July.
    • Handle: RePEc:taf:houspd:v:24:y:2014:i:3:p:568-593
    DOI: 10.1080/10511482.2013.850733
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    References listed on IDEAS

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    1. Thomas J. Fitzpatrick & Stephan D. Whitaker, 2012. "The impact of vacant, tax-delinquent, and foreclosed property on sales prices of neighboring homes," Working Papers (Old Series) 1123, Federal Reserve Bank of Cleveland.
    2. Ingrid Gould Ellen & Josiah Madar & Mary Weselcouch, 2015. "The Foreclosure Crisis and Community Development: Exploring REO Dynamics in Hard-Hit Neighborhoods," Housing Studies, Taylor & Francis Journals, vol. 30(4), pages 535-559, July.
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    Cited by:

    1. Das, Prashant & Füss, Roland & Hanle, Benjamin & Russ, Isabel Nina, 2020. "The cross-over effect of irrational sentiments in housing, commercial property, and stock markets," Journal of Banking & Finance, Elsevier, vol. 114(C).
    2. Elora Raymond, 2016. "Negative equity in the Sixth Federal Reserve District," FRB Atlanta Community and Economic Development Discussion Paper 2016-1, Federal Reserve Bank of Atlanta.
    3. Martin, Chris & Hulse, Kath & Pawson, Hal & Hayward, Richard Donald, 2018. "The changing institutions of private rental housing: an international review," SocArXiv dzyrm, Center for Open Science.
    4. de la Campa, Elijah A. & Reina, Vincent J., 2023. "Landlords’ rental businesses before and after the COVID-19 pandemic: Evidence from a National Cross-Site Survey," Journal of Housing Economics, Elsevier, vol. 59(PB).

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