January 22, 2024 | Alexa Johnson
What is a private equity fund, and why are private equity funds buying homes in Charlotte?
Investors use pooled money from private equity funds for large purchases like residential properties. They see the demand for housing, especially affordable housing, as an opportunity to purchase affordable units and transition them into the rental market.
Usually, the firms and investors hold onto the properties for five to ten years. Recent data has shown that when they are ready to sell, they usually sell to other firms rather than individual buyers, making it difficult for buyers to access the units.