Month: March 2012

Birmingham Ranks #77 in Best 100 U.S. Markets to Invest in Rental Property


Matthew Whitaker - Monday, March 26, 2012

According to HomeVestors of America and Local Monitor, Inc., our Birmingahm real estate market ranks 77th among places to purchase a single family home for rental. If you’d like to peruse the full list – http://www.homevestors.com/inthenews/news.php?id=372. I feel like investing in real estate is very local. I can appreciate what these national brands are attempting to do, but I think the most secure investment is investing in what you know. It has always been my opinion, when investing, that you should pick an area that really interests you and invest yourself in understanding that area better than anyone else. For instance, many people make money investing in the Homewood’s single family home market. However, even though Bryan and I have purchased over 500 single family homes between us, we would not be the right team to advise on buying in Homewood, because we don’t understand the market as well as many others. Bottom line, it is fun to look at these lists, but I wouldn’t invest too much in their affect on you.

Sophisticated Investors are Chasing Single Family Homes


Matthew Whitaker - Wednesday, March 21, 2012

Check out this article I just read on Bloomberg. I think the article is well worth the read if you are considering investing in single family homes. Here is a link to the article: http://www.bloomberg.com/news/2012-03-13/private-equity-buying-u-s-foreclosures-for-hot-rentals-net-8-mortgages.html However, if you’d like the abbreviated version, here are my thoughts and how they apply to our current market in Birmingham:

With returns down across the investment board, investors are in search of yield. It has been my experience that you can invest in homes (if you buy them right) that can yield from 10 – 12% unlevered returns right here in Birmingham.

Sophisticated money is beginning to chase these homes in areas where they can buy a lot of them quickly. They perceive Birmingham as too small of a market to buy large blocks of these homes, so you and I don’t have to worry about competing with them.

If sophisticated money is chasing single family homes, and they are the ones that are doing all the research, shouldn’t you feel comfortable buying now?

Why we do what we do. . .


Matthew Whitaker - Monday, March 12, 2012

I just received the following email from a young lady that moved into one of our homes:

Good afternoon. I just wanted to say thank you again. Me and my daughters love the house!! I appreciate you for trusting me enough to rent the property to me. Will you please tell Bryan that I say thanks to him as well!