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Jun 10

Investment firm purchasing commercial real estate assets from banks and loan servicers around the country; G8’s $15.5 million loan acquisition is secured by a 360,000 square foot commercial property in Orange County, California

LADERA RANCH, CA – June 10, 2014 – G8 Capital (g8cap.com) announced today that it has acquired a $15.5 million commercial loan in Tustin, California. G8 Capital (www.g8cap.com ) is an experienced investment firm which is actively acquiring commercial real estate assets from sellers looking to get all cash, fair value and timely execution.

G8 Capital closed the transaction with all-cash and contingency free, upon coming to terms with the sellers. G8 acquired the loan through a loan servicer as the loan was part of a Commercial Mortgage Back Security (CMBS) instrument.

The loan is secured by a 360,000 square feet flex/industrial business park property in Tustin, California. The business park sits on over 32 acres and includes 16 industrial/flex buildings, 550 Self Storage Units and an RV/Boat Storage Facility. The site benefits from premier access and visibility in the heart of Orange County, and provides immediate access to both CA-55 and I-5 freeways.

“G8 Capital is continually sought after, and actively acquires commercial real estate and strategic commercial debt investments, because financial institutions who work with us know we are fair, timely, and consistent,” said Evan Gentry, president and CEO of G8 Capital. “Real estate and financial firms also seek out G8 Capital for our significant experience and partnerships within the industry.”

G8 Capital has managed more than 65 portfolio acquisitions, representing more than $500 million in residential/commercial loans and REO properties, primarily from large U.S. banks, regional banks, loan servicing companies and government agencies. G8 Capital’s management team has collectively managed more than $10 billion in real estate-related transactions over the past several decades.

Upon acquisition of its portfolios, G8 Capital works closely with borrowers to assess their situation and determine the best work-out solutions, which may include a short-sale, obtaining deed-in-lieu of foreclosure, or restructuring the loan.

G8 Capital also makes careful risk-adjusted investments, preserving the interest of investors, while striving to create significant capital appreciation through the careful restructuring, repositioning, intensive servicing and management of commercial assets and strategic private investments.

For more information about G8 Capital, visit www.g8cap.com.

About G8 Capital
G8 Capital (www.g8cap.com ) is a prudent and disciplined investment firm focused on opportunity-based acquisition of commercial real estate assets and strategic private equity investments. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution from an experienced, reputable firm. G8 Capital’s private equity focus includes investment in early-stage and middle-market companies, with a specific focus in the real estate, finance and technology industries. Visit www.g8cap.com for more information.

Dec 09

Investment Firm Purchasing Loan Portfolios and REO Properties From Banks and Financial Institutions Around the Country That Are Looking for Fair Value and Timely Execution

LADERA RANCH, CA – December 9, 2013 – G8 Capital (g8cap.com) announced today that it has recently acquired a $35 million commercial loan in Alexandria, Virginia. G8 Capital is on track to exceed $100 million in commercial loan acquisitions in 2013.

G8 closed the transaction within two weeks and with all-cash after coming to terms with the seller. The loan is secured by a 271,000 square feet office flex/industrial property in Alexandria Virginia.

“G8 Capital completes acquisitions with all cash and consistently closes transaction very quickly and easily, setting the firm apart in the industry,” said Evan Gentry, president and CEO of G8 Capital. “The financial institutions and other sellers who work with G8 know we are very timely and reliable, and that they’ll get fair wholesale value.”

G8 Capital has managed more than 65 portfolio acquisitions, representing more than $500 million in residential/commercial loans and REO properties, primarily from large U.S. banks, regional banks and government agencies. G8 Capital’s management team has collectively managed more than $10 billion in real estate-related transactions spanning several decades.

Upon acquisition of its portfolios, G8 Capital’s works closely with borrowers to assess their situation and determine the best work-out solutions, which may include a short-sale, obtaining deed-in-lieu of foreclosure, or restructuring the loan.

G8 Capital also makes careful risk-adjusted investments, preserving the interest of investors, while striving to create significant capital appreciation through the careful restructuring, repositioning, intensive servicing and management of both residential and commercial assets.

For more information about G8 Capital, visit www.g8cap.com .

About G8 Capital G8 Capital ( www.g8cap.com ) is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution. Visit g8cap.com for more information.

Oct 22

LADERA RANCH, CA – Oct 21, 2013 – G8 Capital is pleased to announce the appointment of Matt Rogers as Director of Business Development for G8 Capital. Matt is a veteran of the banking and finance industry with nearly 25 years’ experience.

“Matt brings a broad understanding of the commercial lending industry, as well as deep relationships among community and regional banking executives as he joins G8 Capital,” said Evan Gentry, President and CEO. “Matt will allow us to partner with more financial institutions to assist them with challenged assets that remain on their books.”

Matt’s primary focus at G8 Capital will be establishing and maintaining banking relationships in order to source loan and property acquisition opportunities for the firm. G8 Capital helps financial institutions get fair wholesale value for their non-performing or impaired loans and REO properties.

“I am excited to be joining an investment firm and team with a stellar track record,” said Matt. “G8 Capital is known and relied on in the banking community for acquiring distressed or impaired real estate and debt from financial institutions at fair levels, and closing quickly and with cash.”

Prior to joining G8 Capital, Matt served as Senior Vice President of Business Development and Relationship Manager in the commercial banking and finance industry with tenures at Torrey Pines Bank, Mutual of Omaha Bank, Textron Financial, and Silicon Valley Bank to name a few. Matt has focused on securing mortgage warehouse lines of credit, real estate loans, specialty finance rediscount lines of credit, equipment and other fixed asset financing, as well as business loans and lines of credit during his career.

Matt earned his Masters of Business Administration degree from the Marriott School of Management, Brigham Young University, as well as his Bachelor of Arts degree in International Relations.

About G8 Capital
G8 Capital (www.g8cap.com) is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution.

Jul 22
  • Investment Firm Purchasing Non-Performing Loan Portfolios and REO Properties From Banks Around the Country Who Are Looking for Fair Value and Timely Execution;
  • G8 Capital Offers Solid Returns to Investors Seeking to Profit From the Distressed and Changing Real Estate Market

LADERA RANCH, CA- July 22, 2013 – G8 Capital (g8cap.com) announced today that it has acquired $35 million in non-performing commercial loans and distressed commercial properties within the first half of 2013. All acquisitions were completed with cash and closed very quickly upon coming to terms with the sellers.

“While other investment firms in our market have come and gone, G8 Capital continues to seek opportunities to purchase distressed commercial loans and properties,” said Evan Gentry, president and CEO of G8 Capital. “We’ve proven time and again our ability to deliver solid returns to investors seeking to profit from the distressed and changing real estate market.”

The assets include a total of 15 buildings and more than 500,000 square feet across all of the properties. The properties are located in California and Nevada and include industrial, office and hangar properties.

Within the past few years, G8 Capital has acquired more than $300 million of non-performing loans and REO properties, primarily from large U.S. banks, regional banks and government agencies.

Upon acquisition of its portfolios, G8 Capital’s approach is to work closely with borrowers to assess their situation and determine the best work-out solutions, which may include a short-sale, obtaining deed-in-lieu of foreclosure, or restructuring the loan.

For more information about G8 Capital, visit www.g8cap.com.

About G8 Capital G8 Capital (www.g8cap.com) is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution.

Nov 13
  • Firm Experienced and Poised to Purchase Non-Performing Loan Portfolios From Banks Around the Country Who Are Looking for Fair Value and Timely Execution

LADERA RANCH, CA- Nov 13, 2012 – G8 Capital (g8cap.com) announced today that it has acquired $42 million in non-performing commercial loans within the past 60 days. All acquisitions were completed with cash and closed within 1-2 weeks of coming to terms with the sellers, which included one national bank and two regional banks.

The loans were acquired within three portfolios and the assets are primarily located in Western and Southeastern States. The loans are secured by commercial real estate, including office, industrial, retail, gas station/convenience store, airport hangars and mixed use buildings.

“G8 Capital continues to actively partner with banks and other sellers around the country who are looking to strategically move distressed real estate assets off their books,” said Evan Gentry, president and CEO of G8 Capital. “We have a history of long-standing relationships with national and regional banks who select us for our ability to close easily and quickly while paying them fair value for their REO and non-performing loan portfolios.”

Within the past few years, G8 Capital has acquired more than $300 million of non-performing loans and REO properties, primarily from large U.S. banks, regional banks and government agencies.

Additionally, G8 Capital plans to acquire another $75 million in non-performing commercial loans before the end of the year.
Upon acquisition of its portfolios, G8 Capital’s approach is to work closely with borrowers to assess their situation and determine the best work-out solutions, which may include a short-sale, obtaining deed-in-lieu of foreclosure, or restructuring the loan.

For more information about G8 Capital, visit www.g8cap.com.

About G8 Capital
G8 Capital (www.g8cap.com) is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution.

Oct 26

San Francisco Business Times
By: J.K. Dineen, Reporter and Blanca Torres, Reporter
Date: Friday, October 26, 2012

Gracepoint, a Korean Baptist church, is the new owner of a 70,070-square-foot, three-building complex in Alameda’s Harbor Bay Business Park. The church bought the property for $8.1 million or about $116 per square foot from G8 Capital of Rancho Ladera.
Gracepoint acquired the complex, at 1255, 1265 and 1275 Harbor Bay Parkway, after the property went through a few ownership changes.
The buildings were originally owned by Ellis Partners LLC, which had a mortgage with Bank of America. The lender sold the note on the loan for a discount to G8 Capital last May. G8 Capital then took the deed in lieu of foreclosure from Ellis Partners.

Two of the three buildings had been leased by UT Starcom Inc., a maker of cellphones and parts. The tenant, which had emptied the buildings and consolidated operations to China, agreed to an early termination on its lease.

The third building was already vacant.

To add another twist to Gracepoint’s purchase, the church traded a separate 17,000 square-foot building it owned in Alameda to G8 Capital, which is now selling that property.

Gracepoint will use the Harbor Bay complex for its administrative offices and community functions.

Matt Currie and Bob Tasker of CM Commercial represented UT in its termination of the lease with G8 Capital, and also represented Gracepoint in its purchase of the complex.

Nov 07
  • The portfolio, which was closed quickly with all cash, includes loans secured by California real estate and business assets, including industrial, office and retail buildings;
  • G8 Capital has acquired 45 non-performing or distressed commercial loans across multiple portfolios since last year

LADERA RANCH, CA – November 7, 2011 – G8 Capital announced today that it has completed the acquisition of a $6.2 million portfolio of distressed commercial loans from a major U.S. banking institution. The acquisition was closed quickly with all cash, and the portfolio is comprised of loans secured by California real estate and business assets, including industrial, office and retail buildings.

G8 Capital continues to be one of the most active buyers of distressed commercial and residential real estate loans and properties from banks and government agencies. In addition to its significant residential property acquisitions, G8 Capital has acquired 45 non-performing or distressed commercial loans across multiple portfolios since last year.

“G8 Capital has forged strong long-standing business relationships with most of the top banks and government lending agencies in the U.S. This latest portfolio acquisition from a leading U.S. bank illustrates how we are able to close quickly – often with all cash – to benefit banks and government agencies, as well as secure unique and attractive opportunities for investors,” said Evan Gentry, president and CEO, G8 Capital. “We have already started working with the borrowers of this most recent portfolio with a focus on creating workable solutions for all where possible.”

G8 Capital is actively acquiring bulk portfolios with assets throughout the United States with an emphasis in the Western states, Texas and Florida. G8 Capital has proven a valuable partner for sellers seeking to get fair wholesale value for their REO portfolios, as well as their performing and non-performing residential and commercial loan portfolios.

Once a portfolio is acquired, G8 Capital’s approach is to work closely with the borrowers to assess their situation and determine work-out solutions where possible. Work out solutions may include short sale, obtaining deed in lieu of foreclosure, or restructuring the loan.

About G8 Capital

G8 Capital (www.g8cap.com)is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution.

Sep 26

By Marilyn Kennedy Melia
Fox News
September 26, 2011

Investors are buying foreclosed single-family homes and renting them out — and they often rent them to families who have lost homes to foreclosure.

“Families that have gotten used to single-family property living typically prefer renting a home as opposed to an apartment,” says Evan Gentry, president and CEO of G8 Capital, a Ladera Ranch, Calif., private equity fund that has bought 3,000 homes, leasing many to renters.

Investors — individuals and large-scale funds — are buying with the aim of offering the houses for rent because selling at a quick profit isn’t possible.

Families who have been through foreclosure are not alone in preferring a backyard to an apartment courtyard, says Claire Williams, 2011 president of the Michigan Association of Realtors. “Transferees are looking to rent the home they’ve left and rent another where they’re relocating. They don’t want to sell because of the decline in values,” Williams says.

Finding Properties
Neighborhoods that have been hit hard by foreclosure or big price drops are especially likely to have single-family homes for rent, says Mike Bowman, owner of Century 21 Mike Bowman, in Dallas.

Moreover, there could be an increase in single-family homes for rent. In August, the Obama administration called for studying how homes owned by Fannie Mae and Freddie Mac could be rented.

One idea being studied, says Josh Fuhrman, senior vice president of the nonprofit Homeownership Preservation Foundation, is for banks to acquire a property and quickly sell to an investor who could then rent it out — possibly to the family who never left the house, even after foreclosure proceedings began.

Many of the current homes for rent are managed and listed by real estate firms, Bowman says. Additionally, the same channels that list apartments, such as Craigslist.com, are likely to advertise homes for rent, says Aaron Murray, vice president of G8Capital.

Meeting Landlords’ Requirements
Investors buying vacant properties often know families recovering from foreclosure are a significant force in the market, and many have adjusted their requirements for eligible tenants. “A careful review of someone’s credit history can often help landlords determine the difference between someone caught upside down on a home or who had a temporary job loss versus someone who has a long history of late or nonpayments,” Murray says.

Bowman says he advises renters to prepare a letter explaining the circumstances that led to foreclosure and how they have recovered financially.

Some landlords “still insist on a credit score of 720,” says Williams. But in some areas, she says, landlords realize the market demands more flexible standards.

Setting Rent Rates
With today’s low mortgage interest rates, it’s possible foreclosed families could pay more in rent than someone with good credit and cash for a down payment would pay for his or her monthly mortgage payment, says Christopher Thornberg, founding principal of Beacon Economics, a Los Angeles real estate and economic consulting firm.

Many families, not just those who have been through foreclosure, says Williams, find that renting is the only financially viable option for them — either because they can’t sell a former home, have poor credit or fear further home price declines.

Planning to Purchase?
When house prices stabilize, Gentry says, their firm and others might offer plans for renters to buy the houses they occupy.

One such method, called “lease option to buy,” involves charging a renter a premium on top of the regular rent rate. The premium, which may be $100 or more monthly, guarantees the renter can buy the home at a certain price at a certain date — for example, two years after the contract is signed.

Another method is the “contract purchase” whereby the renter pays the investor holding the house a mortgage payment for a few years, with the agreement that in a certain number of years, such as three or four, the renter will get a mortgage from a regular lender and be able to assume ownership from the investor. The mortgage payments paid during the contract period are used to reduce the purchase price when the renter gets regular financing.

“It depends on individual circumstances whether these plans will work for the family,” says Barry Zigas, housing analyst for the Consumer Federation of America.

For one thing, “people often misjudge that they’ll be in a house for a certain amount of time. In this volatile job market, you could find you need to move,” Zigas says. He believes individuals are in a poor position to predict what house prices will be.

Moreover, he likes to see part of the premium on a lease option contract to be put in escrow, allowing the money to be used toward the down payment on the purchase.

Individuals should call a housing counselor, says Fuhrman, to analyze whether these purchase plans are viable for them.

Sep 06
  • G8 Capital Surpasses 3,000 Single-Family REO Acquisitions Since 2008;
  • G8 Capital Has Completed More Than 30 Bulk REO Portfolio Acquisitions;
  • G8 Capital Is Successfully Helping Financial Institutions and Government Agencies Get Fair Wholesale Value for Their REOs and Loans Despite the Economic Downturn

LADERA RANCH, CA – September 6, 2011 – G8 Capital announced today that it has surpassed 3,000 Single-Family REO properties acquired since 2008. Leveraging long-standing business relationships, G8 Capital continues to be one of the most active buyers of bulk single-family REO portfolios from banks and government agencies. The firm has completed more than 30 bulk REO portfolio acquisitions since 2008.

Although G8 Capital has successfully repaired and sold the large majority of REOs acquired, the firm has begun holding single-family properties in a growing rental portfolio. The firm has more than 350 single-family or condo properties being held as rentals today. G8 Capital’s long-term strategies include lease-to-own and contract sales to tenants desirous to own homes. The firm has successfully worked with communities to restore blighted properties and neighborhoods.

“The G8 Capital team has established itself as a partner with sellers of REO portfolios,” said Evan Gentry, president and CEO, G8 Capital. “The firm is well positioned to capitalize on the growing wave of REO properties and increased focus by banks and government agencies to move these REOs off their books.”

G8 Capital is actively acquiring portfolios with assets throughout the United States with an emphasis in the Western states, Texas and Florida. G8 Capital has proven a valuable partner for sellers seeking to get fair wholesale value for their REO portfolios, as well as their performing and non-performing loan portfolios. Once acquired, G8 Capital works hands-on with borrowers and tenants to jointly seek creative solutions that work for all.

G8 Capital is led by a professional, experienced team. The Company was founded in 2007 by Evan Gentry. Previously Mr. Gentry was the CEO of MoneyLine Lending Services. After co-founding MoneyLine in 1996, Mr. Gentry led MoneyLine’s outsourced services business to include 50 banks nationwide. Mr. Gentry also created and led a strategic alliance between Freddie Mac, the American Bankers Association and MoneyLine to provide outsourced mortgages services to community banks nationwide. Mr. Gentry led the sale of MoneyLine to Genpact, a spin-off of GE Capital, in mid-2006.

About G8 Capital

G8 Capital (www.g8cap.com)is a prudent and disciplined investment firm focused on opportunity-based acquisitions of both residential and commercial real estate assets. G8 Capital acquires real estate and loan portfolios from financial institutions, government agencies and other sellers that are looking to get fair value and timely execution.

Aug 08

By Robbie Whelan
The Wall Street Journal
August 4, 2011

VALLEJO, Calif.—Agustin Gutierrez, a construction worker from this town in the hills northeast of San Francisco Bay, lost his job in 2009, then, 10 months later, he lost ownership of his home.

Now, the husband and father of four rents the same five-bedroom ranch from McKinley Capital Partners, an investment company that’s at the forefront of a new breed of big-money landlords.

McKinley, which has acquired more than 300 foreclosed single-family homes in the Bay Area over the past two years, recently teamed up with Och-Ziff Capital Management Group LLC, a New York hedge fund, with plans to buy at least 500 more foreclosed homes in the next year. Those homes, too, will be rented to people like the Gutierrez family.

Buying foreclosed homes as investment properties has long been dominated by mom-and-pop investors. But now hedge funds, private-equity firms, pension funds and university endowments are dipping into that market. The attraction is double-digit returns at a time when most bonds and other income investments yield very little.

The most popular strategy is for a big investor to team up with a local company that scouts out houses and finds the renters. The hope is to flip the homes in the future when prices recover.

“It’s kind of the Wall Street meets Main Street phenomenon,” says John Burns, an Irvine, Calif.-based real-estate consultant who has discussed investing in single-family rentals with hedge funds. “The Main Street guys need the capital, and Wall Street needs the expertise.”

At the end of May, 3.5 million loans were at least 90 days delinquent or in foreclosure, according to investment bank Barclays Capital. At the same time, the country’s home ownership rate has fallen, to 65.9% in the second quarter of 2011 from its peak of 69.2% in 2004, according to figures released by the U.S. Census Bureau last month. That drop has produced millions of new renters and helped push the vacancy rate for rental housing down by about two percentage points, to 9.2%.

“The single-family rental market is actually quite large,” said Dennis McGill, director of research at Zelman & Associates, a research firm that follows the housing market. “The average American says, ‘If I’ve got two kids and a dog, I can’t live in a one-bedroom apartment.’”

Zelman recently issued a report saying that in Arizona, Florida and Nevada, states hard-hit by the foreclosure crisis, the number of families renting a single-family home increased 48% from 2005 to 2010.

Large institutional investors could eventually help stabilize the market by soaking up the huge overhang of foreclosures, which could allow housing to begin healing. However, the number of single-family homes being bought by institutional investors is still small compared to the millions of distressed properties. The biggest players in the market are deploying hundreds of millions of dollars, not the billions necessary to make a major dent.

The federal government has a large role as well. The Obama administration is currently considering ways of selling foreclosed homes to investors who agree to rent them out. Fannie Mae and Freddie Mac and the Federal Housing Administration own more than half of all unsold foreclosed homes.

Being a landlord can be a costly hassle for large investors. Unlike apartment complexes, which concentrate hundreds of rental units in one place, investors must buy hundreds of single-family houses that are miles apart, each with separate maintenance problems. Tenants can be troublesome.

“You could have a bad tenant who doesn’t want to pay their rent, or maintain the pool,” says Guy Johnson, an investor who buys foreclosed properties in Nevada, Arizona and California and rents some of them out. “A hedge fund manager doesn’t want to have to be their own plumber or electrician.”

Buying foreclosed properties isn’t easy either. Investors sometimes have to pay thousands of dollars in “cash for keys” payments to the previous homeowners in order to entice them to leave the property, and foreclosed homeowners often damage their homes before they are evicted.

Private-equity giant Carlyle Group LLC tried its luck with the single-family home market two years ago but abandoned the strategy late last year after concluding that the returns weren’t large enough. Carlyle’s strategy was different. The company formed partnerships with local asset managers in California that bought and flipped homes, rather than renting them.

For now, more investors are plunging into the single-family rental market. McKinley, the Oakland, Calif., company that owns Mr. Gutierrez’s house, has already begun to use Och-Ziff money to purchase houses. Its model is to buy homes at an average price of about $100,000 apiece, put between $10,000 and $25,000 in renovations into them, and set the rental rate of the house so that it produces a return of 8% to 12% annually. This often works out to a rent of roughly $1,200 per month.

McKinley and Och-Ziff could see additional returns from selling the houses at a higher price after a few years, once the market has improved. “Two years ago no one thought you could scale this business or that it could be institutionalized,” said Gregor Watson, a principal with McKinley. “Now, you can get very good yields. It’s a very good long-term strategy.” He declined to comment on the Och-Ziff investment. Och-Ziff also declined to comment.

Other large investors have formed rental-housing partnerships.

G8 Capital, a private-equity fund based in Ladera Ranch, Calif., has bought 3,000 homes across the country since 2008, mostly to flip them. It decided last year to begin pursuing a hold-and-rent strategy. It has since bought 250 foreclosed homes as rentals. Carrington Property Services LLC, a Santa Ana, Calif.-based property investment company that manages about 4,500 homes nationally, is in talks with investors to raise funds for a real-estate investment trust, to be called Residential National Trust, which would acquire foreclosed homes for rental. The company plans to buy as many as 5,000 more rental homes in markets including Chicago, Miami, Phoenix and Las Vegas.

Waypoint Real Estate Group, an Oakland, Calif.-based company, has bought 700 homes in the past two years as rental properties. Doug Brien, a former place kicker for the New York Jets who is now managing director of Waypoint, says that his company has approached pension funds, university endowments and large private investment groups about investing in his fund. In July, he says he closed on a financing deal from an Ivy League university endowment, but declined to name the university.

“At some point, there will be a shortage of housing,” Mr. Brien said. “Everyone is realizing that single-family buy-and-hold is the way to go.”

In November, hedge fund manager William Ackman’s Pershing Square Capital Management LP released a report arguing that single-family rental properties are an “under-owned asset class” that would make “an intelligent investment for institutional investors.” Pershing Square predicted that investing in single-family homes and holding them as rentals for 10 years could produce double-digit investment returns, even if U.S. home prices only improved marginally.

All the activity is fueling a renewed debate over whether investors are good or bad for the housing market. In the early days of the housing bust, some community groups discouraged banks from selling foreclosed homes to investors for fear they wouldn’t take proper care of the properties. Some communities riddled with foreclosed homes became slums.

Alan Mallach, a senior fellow with the Brookings Institution in Washington, argues that instead of running from investors, local governments should provide subsidies to investors who buy, rent out and are good landlords for foreclosed properties. “If a neighborhood has a high rate of home ownership, that’s obviously better,” he said. “But in some markets, there was so much inventory coming on the market that the sheer number of properties was destabilizing those markets.”

Mr. Gutierrez, the Vallejo construction worker, now pays $1,800 a month in rent, compared to the $2,500 per month he was paying to cover the cost of his mortgage when he owned the house. He says it bothers him that he no longer owns his home, but is happy to pay less and says his new landlords are good property managers.

He bought the house in 2003 for $340,000 using a $322,700 loan. He refinanced the home five times, driving up the total amount of debt on the house to $400,000. He lost the house to foreclosure in 2009. McKinley paid about $155,000 for the house that year.

“It’s confusing, because sometimes I think it’s my house, but I have to remind myself that it’s not,” said Mr. Gutierrez, who says he doesn’t plan to try to repurchase the house. “It’s sad, but it’s what happened to a lot of people.”