Blackstone Unleashes Financing Options
Real estate investors looking for funding in 2014 could find this new lending source and its President one of their best allies…
On November 15th, 2013 investment giant Blackstone made a major announcement that changes the game for rental property investors, and is likely to create ripples which have the potential to provide a huge boost to the U.S. economy at every level. Former joint head of single family rental finance at Deutsche Bank AG , John Beacham recently joined Blackstone Tactical Opportunities’ new B2R Finance lending arm as President. “B2R” has now unleashed several stunning new mortgage finance programs specifically designed to aid small to mid-sized buy and hold real estate investors with loans of $500k to $50M.
The Major Pivot Real Estate Entrepreneurs Have Been Begging For
In recent years some rental property investors have felt significant pressure from mega funds like Blackstone, which according to Bloomberg has spent over $7B in acquiring tens of thousands of U.S. residential rental homes. At the same time, access to credit for those desiring to capitalize on appetizing investment opportunities in the market has been incredibly restrictive, even for well-qualified borrowers.
The B2R Finance pivot completely changes these dynamics. The new buy to rent financing source puts all of the best of Blackstone behind the smaller real estate entrepreneur to fuel their goals for the new year, and long term passive income generation and wealth building.
With access to considerable deal flow, the capital to execute on it and a lending partner that really understands their needs the next 12 months promise to be an exciting time for expanding portfolios.
In an interview with B2R President, John Beacham, Realty411 got the inside scoop on the firm’s new loan programs…
Making Buy to Rent Finance a Breeze
So what’s so notable about this new collection of loan products, and lender, and how easy is it to get funded?
In our exclusive January 2014 interview John was quick to point out that while B2R Finance is a completely separate entity to Invitation Homes, it puts all of that experience, billions in liquidity and understanding of the challenges investors face in this arena into backing the smaller rental property landlord.
In fact, B2R is one of the only players in this segment of the market. Specifically it is unique in offering tailor made loan products for financing single family rental property portfolios with loan amounts between $500,000 to $50,000,000.
Mr. Beacham points out that not only are approximately 98% of the nation’s estimated 14 million single family rental homes actually owned by smaller investors (not large institutional players), but “75% of those properties have been purchased with no debt”. John goes on to highlight “that’s over 10 million properties in the U.S. with no financing on them, much of which has been picked up by entrepreneurs buying for their own personal portfolios”.
B2R’s President comments that this pool which represents around 1 in 10 of all homes in America doesn’t remain unleveraged due to a choice, but rather a gap in the market which has left investors sorely underserved.
Besides the strict credit requirements banks have set, investors in this segment of the market have been buffeted by quirks in underwriting requiring extensive paperwork and limits put on the number of properties able to be financed. Hard money lenders have tried to move back in, but high fees, double digit rates and occasional nightmare scenarios in which they have run out of funds have proven them to not always be the most attractive option for buy and hold investors.
Blackstone’s B2R flips this all on its head, and specifically provides critically needed liquidity for those with 5 or more rental homes, who are seeking loans from $500k and up.
This enables investors to re-capitalize, achieve leverage for expanding portfolios and is providing a massive cash injection with wide reaching benefits which should make life a little better for everyone.
3 Steps to Success…
When asked about the advantages of working with B2R Finance, John Beacham explained the B2R management team has funded significantly more rental homes loans than other institutions, pointing out the benefits of the expertise and focus as “This is all we do.” Of course what everyone wants to know is how easy it is to get one of these loans… John told Realty411 that decision making on these loans is primarily based upon the asset and cash flow, the company offers non-recourse options; providing fast funding and a straightforward process.
Beacham was clearly very bullish on the outlook for rising asset values, which investors should take as a great sign, and indicator of an aggressive lending partner which really wants to make loans, and a lot of them. According to the head of the unit the borrowing process is really a simple 3 step process:
1. Call toll free on 800-227-8107 or apply online at http://www.b2rfinance.com/ apply-now
2. Return the signed term sheet and ‘expense deposit’ for due diligence
3. Close your loan
Investors who are serious about improving and growing their portfolios for 2014, need to learn more about B2R Finance and the opportunities they offer.
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