A new property data and analytics offering from CoreLogic is now available for investors who are interested in participating in the Federal Housing Finance Agency’s REO-to-rental progam.
The tool provides investors with property-level information to make business decisions regarding which properties to possibly buy and convert into rental units.
Notable information provided by the solution includes the average potential rent for the subject properties based on relevant market information such as nearby multiple listing service single-family residence rental data; capitalization rate information by geographic area; and the current value of the property using CoreLogic automated valuation models.
Additional features given to investors who utilize the tool is an assessment of neighborhood and market trends, 24-month review of housing price trends and cash flow projections on similar properties.
Investors receive this analysis within one business day, the Santa Ana, Calif.-based analytic provider said.
“The GSEs are in the process of prequalifying investors for their programs and a number of investors have announced new funds to capitalize on this opportunity,” said Ben Graboske, senior vice president of real estate and financial services for CoreLogic. “Our new program will give investors the data and insight they’ll need to model their cash-flow projections, to bid with confidence and then to set attractive market-appropriate rents. The better the data, the better the chances that programs will be successful and more inventory can be brought to market in this fashion.”
This tool was rolled out after an initiative was announced by FHFA to offer its 250,000 REO properties in bulk to investors as a buy-to-rent strategy.
Initially, the program will focus on areas particularly hard hit by the housing market collapse, with Fannie Mae recently auctioning 2,490 properties in Georgia, Illinois, Florida, Nevada, California and Phoenix through a complex bidding process.
Large private mortgage investors are also pursuing similar strategies, including foreclosure rental programs that could allow delinquent homeowners to stay in their homes as renters.
