The following news stories peaked my interest. It shows how big investors are acquiring single-family residences as part of their investing strategy.

• Blackstone Bets $6 Billion on Buying and Renting Homes
• Invesco and Mynd partner to buy $5 Billion in SFRs
• Tricon to acquire 50,000 single-family homes over the next three years

What are the most prominent investors at the biggest companies doing with their money?

The answer? They’re investing in single-family homes. And they’re buying them just as rents are surging.

Why Single-family Residences?

Investing in single-family homes offers a wealth (pun intended) of opportunities. Here’s what top investors have to say about single-family residences:

• They provide a constant, predictable cash flow and yield. When you invest in real estate, you have a good idea of what you’re getting. You know the anticipated outcome when payments are supposed to come and are insulated from the volatility of the stock market.
• They are tangible assets. You’re buying something real, something you can see, touch, and physically improve. You also provide a benefit to the person using the property as well as improve the community when you’re a conscientious owner.
• Inflation, Inflation, Inflation – income-producing real estate is arguably THE BEST investment anyone can make to take advantage of and protect oneself from inflation, period.

Real estate investing has never been the route the largest investment companies in the world have chosen. Typically they work with businesses (think stocks, bonds, and derivatives). However, as markets change and interest rates remain low, these investment companies seek yield and opportunities for growth.