Time to quit moaning and follow your dreams.
Oliver Chang quit his job as head of housing strategy at Morgan Stanley last year to follow his own advice and invest in distressed homes to rent. He’s since become one of the largest landlords in Atlanta.
Chang, 37, has more than $500m for his company Sylvan Road Capital LLC to acquire and rehabilitate homes and expand into other cities across the U.S., according to a letter sent this weekend to investors obtained by Bloomberg.
The former analyst has gained investors including Carlyle Group after writing a six-page report in July 2011 detailing how the worst real estate crash since the Great Depression was moving America toward a 'rentership society'. While he foresaw that leasing single-family homes could become a large-scale business similar to apartments, he didn’t predict how fast private equity firms backed by cheap borrowing from Wall Street would flood regions hardest hit by the foreclosure crisis to help fuel the fastest home-price gains in seven years.
'I’ve certainly been surprised by the pace of acquisitions', Chang said in a telephone interview from Atlanta. 'There has been a rush of capital into the space'.
Blackstone Group has spent $5bn on almost 30,000 properties across 13 metropolitan areas since last April to become the largest rental buyer in the U.S. It’s obtained $3.6bn in loans from banks including Deutsche Bank.
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