Donald Mullen, former executive at Goldman Sachs is attempting to raise $500 million for a fund to buy foreclosures. The goal is to rent the homes. Mullen is one of the brains behind the subprime mortgage trade. He began marketing his Fundamental REO Access cause about a month ago, in some cases to some current Goldman Sachs clients. This is part of a trend to buy foreclosed homes and turn them into rental properties for residual income.
Mullen is anticipating raising as much as $1 billion in the fund. They will target homes that range from $70,000-$190,000, mainly in the southeast and southwest markets. Mullen “actively engaged in derivatives trades that became widely known on Wall Street as “the big short” while he was a senior mortgage executive at Goldman Sachs. Mullen and other investors would serve as placement agents, collecting fees from 1-2% of the total sum raised by investors.
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