Hedge Fund Gobbles Up Hundreds of Residential Homes in a Day for $98M

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Something is happening in the housing market that just doesn’t add up.

Amid rising interest rates and a struggling economy, large investment firms are gobbling up residential rental properties.

The trend is happening nationwide, including in Clark County, Nevada, where a Wall Street-backed firm gobbled up $98 million worth of residential real estate this summer alone, the Las Vegas Review-Journal reported.

Invitation Homes, based in Dallas, acquired a total of 264 homes in and around Las Vegas on July 18 in a swap with another private investment firm, Starwood Capital Group, out of Miami.

The prices averaged $371,514, but ranged from a relatively modest $292,000 up to a sizable $694,000 price tag.

This was only a portion of the $650 million agreement between the investment firms that involved 1,900 single-family residences across the U.S. in places like Texas, Florida, Los Angeles and Phoenix.

It’s also a sliver of a larger trend of hedge funds, private equity firms and other financial institutions adding residential real estate rentals to their portfolios.

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