Goldman Backs Mullen in Rentals After Subprime Short

Buying sprees by investment firms such as Mullen’s means they are often paying a premium, according to Bruce Norris, president of the Norris Group, a closely-held real estate investment firm in Riverside, California. Norris paid $131,000 for a nine-year-old five-bedroom house in October that he fixed and resold to Fundamental REO for $175,000 the same month, according to property records. “If those guys bought from us, we sold at retail,” Norris said in a telephone interview. “They aren’t finding deals. They’re just finding inventory.”