Competition

[Matt T.]

NY Times article about corporations buying up huge bundles of houses with the intention of renting them all out.

http://www.nytimes.com/2012/04/03/business/investors-are-looking-to-buy-homes-by-the-thousands.html

[Steve L.]

From what I have heard Waypoint has 130 employees (that's a lot) and there business model mostly consists of earning fees (acquisition fees, rehab fees, management fees, disposition fees). The investors get 90% of the equity.

Waypoint does some unique things:
- they leverage properties with a bank and get 50% of the money out at 5-6%
- they rent the properties on a lease option and get a 10%-15% premium because of this
- they are attempting to automate everything with computer programs

I think they are around to stay... it will take them 2-5 years to know how big of a success or failure there business model is. If we see appreciation in the short-term they will clean house. If enough of their renters buy the property I think they will do well also. I could see them open a finance division just to to get loans to their renters.