HOUSINGNEWS REPORT
PRIVATE LENDING GOES PUBLIC
2017 YEAR-OVER-YEAR CHANGE IN LOAN ORIGINATIONS TO HOME FLIPPERS SELECT FIX-AND-FLIP LENDER GROWTH
“Institutional demand in this space has grown substantially over the last several years. Fix- and-flip has become an asset class of its own that is well- financed by banks and highly sought by institutional buyers.”
LENDINGONE
116%
ROC
105%
LENDINGHOME FNDG
50%
GENESIS CAP MASTER FUND
45%
LIMA ONE CAP
28%
MAKSIM STAVINSKY CO-FOUNDER AND COO, ROC
5 ARCH FNDG
24%
ANCHOR LNS
24%
in product eligibility and speed of execution,” said Stephen Pollack, CEO with Anchor Loans, LP, which saw a 24 percent increase in loan origination volume to home flippers who completed a flip in 2017, according to the ATTOM analysis. “Private lenders fill a much-needed gap where banks are unable to service the industry.”
class of its own that is well-financed by banks and highly sought by institutional buyers.” Additionally, with growth private lenders are evolving into fully formed non-banks with multiple product lines and access to capital through securitization. LendingHome Senior Vice President of Execution Josh Stech says his firm can now originate FHA- backed mortgages and sell loans to Fannie Mae. For short-term bridge loans such as those used by flippers, LendingHome has a number of funding sources
according to Stech: whole loans sold to investors ranging from financial institutions to hedge funds; borrower- dependent notes sold to accredited investors; and an investor platform which, said Stech, “democratizes access to this asset class.” “With LendingHome’s investor platform,” he said, “accredited investors can easily build a diversified portfolio of real estate assets with as little as $1,000 per investment, and enjoy tech-enabled benefits such as ‘Auto- Invest’ that target returns averaging 7 percent.”
Institutional Capital Chasing Returns
“Institutional demand in this space has grown substantially over the last several years,” said Stavinsky, of Roc. Fix-and-flip has become an asset
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APRIL 2018 | ATTOM DATA SOLUTIONS
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