Why institutional SFR investors need local aggregators

Large private equity funds and publicly traded REITS have been buying single-family residential houses since 2011 at the time when the foreclosure crisis was reaching a high. These companies have become owners of 20,000, 40,000 even 50,000 houses across the United States and have created an entirely new asset class.

The main success in the SFR business is acquiring high-quality assets. Each institution concentrates on a number of markets and in each one of those cities the neighborhoods and cities that are most attractive for yield and price appreciation.

What is the need that all of these companies have? They need local boots on the ground to assist in aggregating and acquiring high-quality assets. The need to acquire these assets can be provided by companies that know the landscape and know the type of assets these buyers need. This is where my company, Kinloch Partners, LLC, provides this services.

Kinloch Partners works with the large institutional buyers to aggregate houses in Atlanta and Nashville. We know the cities, subdivisions and even the streets that will provide the best opportunity for appreciation and yields for these companies.

Local aggregators can be the key for an institutions success in a given market.

Our portfolios of houses have been purchased 11 times by the large national institutional owners of houses and the smaller private equity firms looking to grow in this space.

The best investment these institutions can make is seeking out and contracting with firms like ours to acquire high-quality assets matching the algorithms and matrices each company needs.

The institutional business of owning rental houses is here to stay. The success of these companies will be greatly enhanced by working with local aggregation companies like ours.

Bruce W McNeilage, CEO

Kinloch Partners, LLC