On the heels of the post this morning, in which it was suggested that margin debt is being used to finance a buy-to-rent and house flipping strategy by retail investors, today we catch wind that some of the big players that had been piling in to buy single family homes for rental are now backing off. To quote Bruce Rose, CEO of the hedge fund Carrington:
“We just don’t see the returns there that are adequate to incentivize us to continue to invest…There’s a lot of — bluntly — stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.”
