Buying a House, the Wall Street Way

An article in The Wall Street Journal describes how institutional investors are using computer algorithms to purchase large numbers of rental properties. Specifically, it explains how one data scientist, Martin Kay, used the strategy to create Entera Technology. The article reports that Mr. Kay began buying rental properties in Texas in 2010, using machine learning to cull out listings that might attract appealing tenants: “For Mr. Kay and like-minded investors, that typically meant families seeking… Read More

Mullen to Bet $1 Billion on Housing Market

A decade ago, Goldman Sachs Group Inc. cashed in on a big bet against the housing market with the help of Donald Mullen Jr., but a Wall Street Journal article from earlier this month reports that he has since changed his tune. According to fundraising documents reviewed by WSJ, Mr. Mullen has co-founded real estate investment firm Pretium Partners LLC. which is raising $1 billion to buy single-family homes to rent. “We believe tight credit… Read More

Housing Market Confidence is Building

Homebuilder optimism has grown, according to The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) which settled at 65 in September (it had not been that high since October 2015). In an article for TheStreet, Validea CEO John Reese outlines some of the reasons for the upbeat mood and offers the following four picks that look solid based on our guru models: LGI Homes (LGIH) is engaged in the design, construction, marketing and sale… Read More