Why Did Goldman Sachs Just Buy a Los Angeles-Based Fix-and-Flip Lender?

 

Recently Goldman Sachs closed on its purchase of Genesis Capital, which lends money to developers who buy, renovate, and resell single family homes. This seemingly obscure corner of real estate finance has also attracted attention from KKR, which struck a deal with Toorak Capital, and Kuwaiti investment vehicle Wafra Capital, which partnered with Anchor Loans. Meanwhile, Blackstone is aiming to build the Finance of America brand as a lender to investors in single family homes as well.

While Goldman, KKR, Wafra, and Blackstone each have their own reasons for focusing on this niche, we believe they all recognize several attractive features of this type of investment program. Jan Brzeski, Managing Director and Chief Investment Officer outlines some of those features in the article he contributed for the Mann Report.

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