Distress Deals: SFR Goldmines for Hedge Funds

Distress Is Rising

Hedge funds thrive on distress—2025’s delivering. Foreclosures jumped 10% in early 2025 (X), and MSCI warns $500B in underwater loans mature this year. That’s an SFR goldmine, and Rigg Investment Group connects hedge funds to these wholesaler-driven opportunities—off-market and ripe.

Why Distress Pays

Wholesaler distress deals—$275K Tucson homes with $330K ARVs—hit 7.8% caps at $1,900 rent. In Raleigh, $350K fixers (ARV $420K) yield 7.5% with $2,200 rent—$35K below MLS comps. Cash closings in 7–14 days mean instant ROI. X posts show funds grabbing these at $315K while MLS lags at $350K—scale to 10, and it’s $350K saved.

2025 Sweet Spot

Rates at 5.5–6% (J.P. Morgan) kill retail competition—hedge funds with cash dominate. Wholesaler pipelines—our Sunbelt focus—turn distress into gold: 10+ deals monthly, 7–8% caps. Inflation’s up, rents too (3%, HousingWire)—SFRs hedge better than ever.

We’re Your Link

Rigg Investment Group isn’t a broker—we JV with wholesalers to connect their distress deals to hedge funds. Expertise meets opportunity.

Join Our Network

Hedge funds, mine 2025’s SFR distress—join Rigg Investment Group’s network for exclusive wholesaler deals. Sign up today here.