Blackstone’s B2R Finance: A Primer
By Ken Corsini posted on BiggerPockets.com, February 21, 2014.
I think everybody knew it was a matter of time until somebody stepped in and created a lending product that the market has been dying for. With an unprecedented number of investors scooping up distressed properties over the last several years, the demand for non conventional financing for non owner occupied property has been at an all time high.
I’ve worked with many investors over the last few years who were willing and able to buy more properties, but were at a loss having hit the max allowable limit set by Fannie Mae. In previous market cycles, many local and regional banks stepped into this roll, but even their ability to lend on single family properties has been limited (due, mostly in part, to the huge losses these banks incurred during the downturn).
But here were, at the beginning of 2014, and Blackstone’s B2R finance has just become available to investors. While somewhat untested, I think they will be the first of many players that get into the portfolio financing space.
Having only just begun the conversation with B2R finance, I’m by no means far enough down the road to form an experienced opinion, although I do have some initial thoughts, based on my conversation with their rep…
An Assessment of Blackstone’s B2R Finance
Loan Size – Based on my conversation and what is advertised on the website, the minimum loan size they would consider is $500,000 and the max is $3,000,000. With the kind of money Blackstone has been able to raise, it doesn’t surprise me that the minimum portfolio they would consider would be in the neighborhood of a half million. Not only is it more efficient for them to bite off bigger chunks, it also elevates the caliber of the investors that they will work with.
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