Mynd gets $ 5 billion to buy single-family rentals
Mynd Management is preparing to dominate the single family home rental market with the help of a major investor.
Through Invesco Real Estate, Mynd will receive $ 5 billion to purchase 20,000 single-family rental homes in the United States over the next three years, Bloomberg News first reported.
The partnership will make Mynd one of the largest buyers and managers of such homes in the United States, the company said in a press release. The company will focus on purchasing for Invesco as it expands its platform to manage more than 7,000 homes in 25 cities.
Mynd operates a platform that aims to democratize access to real estate and help investors buy, sell or manage single-family rentals across the country.
Invesco is also leading a $ 40 million funding round for Mynd, which will be spent on technology and acquisitions, according to Bloomberg News.
Mynd has acquired around 50 homes per month and hopes to increase that number to 1,000 by next year, the publication reported.
The partnership comes at a time when more than half of the country’s multi-family properties are owned by institutional investors. Meanwhile, single-family rental ownership is 2-3%, Bloomberg News reported.
Traditional commercial real estate investors whose key strategy was to invest in multi-family housing have since focused on single-family rentals, the publication reported.
âWe see the market awash with institutional capital,â Mynd CEO and co-founder Doug Brien told the publication.
This will make it more competitive for Mynd to find these properties, but its data-driven technology should give it a boost when it comes to bidding across the country, the publication reported.
Thomvest, Common Fund, Squarepoint and other investors also participated in the funding round, valuing Mynd at $ 300 million.
[Bloomberg News] – Cordilia James