Among people living in rental homes in Texas, many individuals lease homes owned by real estate investment companies. Firms like Invitation Homes and American Homes 4 Rent manage properties that value well into the hundreds of millions of dollars. With occupancy rates up and financing available, these companies expanded by purchasing or building new units.
When Invitation Homes merged with Starwood Waypoint Homes, it gained 34,670 rental properties in the deal. In addition to the merger, the company spent $80.5 million on 290 more homes in a transaction that included renovation costs. Total homes in the company’s portfolio now number 82,570. As a growing investment company in a strong market, the company gained a $917 million, seven-year mortgage to refinance existing loans and lower its interest payments.
American Homes 4 Rent has budgeted $400 million to $600 million for the acquisition of new rental homes in 2018. The company at the close of 2017 controlled 46,996 houses. Among its holdings, 95.7 percent of the homes were leased, which represented a rise from 2016 when the company had leases for 95.2 percent of properties.
Whether a large company or an individual is involved in a real estate transaction, many legal details need to be evaluated before committing to a sale. At times, real estate disputes arise either during a sale negotiation or afterward, and a person might want the representation of an attorney. With legal advice, a person may consider how to proceed with litigation. An attorney may be able to analyze the terms of a purchase agreement, lease or development contract and investigate the reasons behind disputes that involve zoning, financing or a land title. After developing strategies for protecting the person’s rights, an attorney may help organize documents and file a lawsuit.