CoreLogic (CLGX) launched a tool Monday to help investors accurately gauge the value of real-estate owned properties sold through the Federal Housing Finance Agency's REO-to-rental program.
The tool arrives shortly after Fannie Mae, Freddie Mac and the FHFA announced plans to auction off part of the GSEs inventory of 250,000 REO properties for the purpose of revamping the homes into rental properties owned and managed by investors.
The FHFA REO-to-rental program will initially focus on hard-hit areas, including Georgia, Illinois, Florida, California and Phoenix.
CoreLogic's tool is designed to give investors acquiring the properties enough information about the market value of each property, as well as the cap rate for the geographic area and any other single-family rental data tied to the respective markets with REO-to-rental properties.
"The GSEs are in the process of prequalifying investors for their programs and a number of investors have announced new funds to capitalize on this opportunity," said Ben Graboske, senior vice president of real estate and financial services for CoreLogic.
"Our new program will give investors the data and insight they’ll need to model their cash-flow projections, to bid with confidence and then to set attractive market-appropriate rents. The better the data, the better the chances that programs will be successful and more inventory can be brought to market in this fashion," he added.
Investors using the rental solution also have access to CoreLogic's automated valuation models as well as cash projections on individual properties.