San Diego-based Pacifica Cos. became the first winning bidder in a federal pilot program to sell repossessed homes to investors in bulk on Friday, purchasing 699 occupied and vacant single-family properties in Florida. The final sale price exceeded $12.3 million, according to the San Diego Union-Tribune.
The new program — implemented by Fannie Mae and the Federal Housing Finance Agency — offers foreclosed properties in bulk to investors, who must promise to convert them into rentals. The Florida properties represent 699 of an estimated 2,500 total foreclosures available under the program.
Under the terms of the sale, Pacifica will share controlling interest in the properties with Fannie Mae as a new LLC. Initially, Fannie Mae will receive 90 percent of the LLC’s rental revenue, up to the point it reaches $49 million; from there, Fannie’s share drops to 50 percent.
Pacifica will receive the balance in both situations and will also take 20 percent of the gross rental income collected as a management fee.
To read the rest of the story, click here.
Advertisement
Related Stories
Business Management
How to Create a More Inclusive Workplace for Women in Construction
Consider these tips and techniques to attract and retain more women in your home building company and reap the benefits of a more diverse workforce
Business Management
AI in Home Building ... What Now? What Next?
Artificial intelligence is coming to home building. How can builders use AI in new-home construction? Start with this primer
Business Management
Ways to Improve Home Building Productivity, Part 2: Automation
Home builders can maximize efficiencies gained through simplification and standardization by automating both on-site and back-office operations
