Think-Realty-Magazine-May-June-2017

NEWS BRIEFS

NATIONAL UPDATES

PATCH OF LANDADDS VETERAN EXECUTIVES TO MANAGEMENT TEAM Leading online real estate lending marketplace PATCH OF LAND has rounded out its management team, adding Chief Financial Officer MIN LEE and Chief Investment Product Of- ficer MATTHEW ZALL , along with previously announced Chief Marketing Officer ROBERT GREENBERG . Lee joins the company from Credit Suisse, where he was a director in the Real Estate, Gaming and Lodging team responsi- ble for the execution of advisory and financing transactions. Lee assisted clients with over 25 financing and M&A advisory transactions, which have raised in excess of $15 billion of debt and equity financings for public and private companies. Lee’s expertise in financing strategies will allow the company to grow and manage its credit lines and will add to the company’s strategic planning by applying sophisticated statistical and predictive processes. Zall brings to Patch of Land Prior to joining B2R, he was a commercial real estate (CRE) trader at J.P. Morgan and Bear Stearns. He joins Patch of Land as the firmprepares to expand into the single-family rental market with longer term, permanent financing products. With the addition of Lee, Zall and Greenberg, a 25-year marketing and advertising veteran who led marketing and lead generation at B2R Finance, Patch of Land founders Jason Fritton and Brian Fritton have assembled a veteran management team with deep experience in growing lending and investment businesses. Other 2016 executive team hires include CEO Paul Deitch, who joined from Oaktree Capital Management, where he scaled the company’s technology, operations and investor relations functions to empower the firm’s growth from $50 billion to $100 billion in assets under management; SVP of Operations and Underwriting Gina Donato- ni, a 30-year veteran of several billion-dollar mort- gage companies, who most recently scaled a team at PennyMac MATTHEW ZALL more than 12 years of real estate and mortgage experience, as well as ex- pertise in financing and product develop- ment. He pioneered three of the industry’s first-ever multi-borrower single-family rental securitizations, helping build Blackstone Group subsidiary B2R Finance (now known as Finance of America Holdings, LLC) from start-up to a multibillion-dollar lender in only a few years.

SHARESTATES HITS $275 MILLION IN LOAN ORIGINATIONS After only two years in operation, real estate investment SHARESTATES has originated $275 million in loans, the company announced. December 2016 was the most prolific month in the company’s history, as it surpassed $42 million in loans, nearly doubling total loan volume in just over three months. Using its extensive due diligence process and real estate expertise, Sharestates performs a 34-point underwriting process for each project, focusing on the borrower’s experience and the project’s economics and fundamentals. All loans originated by Sharestates are secured by the property and the personal guarantee of the borrower. “A key to our growth has been our ability to identify safe and profitable investments that will generate higher yields than the industry average,” said Allen Shayanfekr, co-founder and CEO of Sharestates. “As the crowdfunding industry expands, we are confident in our model’s ability to maintain outstanding results for investors and generate competitive returns.” As of December 30, 2016, the company funded over 323 individual loans, returned more than $151 million to its inves- tors with no loss of principal, and yielded a net average annual return of 11percent to investors. • SOURCE :: www.sharestates.com In what co-president David Hicks called a fitting end to the company’s 20th year in business, HOMEVESTORS closed out 2016 with the purchase of its 75,000th “ugly house.” The home was purchased by Don Cameron, of West Palm Beach, Florida, a longtime franchisee for the “We Buy Ugly Houses”- branded homebuying network. “This is a very exciting, special achievement earned in our 20th year of business. We couldn’t have asked for a better way to end the year,” Hicks said. “Don is a loyal, hardworking franchisee who has well represented our national brand and best practices values in this industry …we can’t wait for what 2017 will bring.” Cameron has been a HomeVestors franchisee for more than 10 years. His company, Hi-Land Properties LLC, won franchise of the year for 2016, with 133 house purchases and revenue surpassing $24 million. Cameron’s sale volume was highest of any franchisee in the HomeVestors network. • HOMEVESTORS PURCHASES 75,000 TH UGLY HOUSE

NAR Q1 ‘17 HOUSING SURVEY REFLECTS UPTICK IN CONSUMER CONFIDENCE The National Association of Realtors’ Q1 2017 Housing Oppor- tunities and Market Experience (HOME) survey shows growing consumer confidence about the U.S. economy and housing sector. In the first three months of 2017, 62 percent of households believe the economy is improving, soaring to the highest share in the survey’s five-quarter history, up from 54 percent the previous quarter and 48 percent in March 2016. Con- sumer confidence is especially strong in rural and middle America, according to the survey.

RENTRANGE DATA SHOWS INCREASING STABILITY IN SINGLE-FAMILY RENTAL MARKET

Good news for investors of single-family rentals: Market stability appears to be gaining steam, as RENTRANGE ’s Q4 2016 data shows a lessening percentage change between quarters while rent rates continue to increase. This year “continues to look bright for single-family rental investors,” saidWally Charnoff, chief executive officer, Rent- Range Data Services. “Compared to the Q3 2016 change in rent, we are seeing the percentage change begin to lessen while rents continue to increase, which should ultimately stabilize demand, keeping vacancy rates down. It remains important for investors to look at stability within a market, focusing on the market’s activity over time to ensure there is a good balance — low historical volatility with a current upswing.” RentRange is one of the nation’s premier providers of information for the single-family residential sector, delivering address and market-level rental data, analytics and rent-based valuation solutions for a diverse customer base. 1 McAllen-Edinburg - Mission, Texas 2 Cape Coral - Fort Myers, Florida 3 Portland-Vancouver - Hillsboro, Oregon-Washington 4 Denver-Aurora, Colorado 5 Seattle-Tacoma - Bellevue, Washington 6 Boston-Cambridge-Quincy, Massachusetts - New Hampshire 7 San Francisco-Oakland - Fremont, California 8 San Jose-Sunnyvale - Santa Clara, California 9 Barnstable Town, Massachusetts Deltona-Daytona Beach - Ormond Beach, Florida THE TOP-RANKED REGIONS (AMONG 25 LISTED) IN THE Q4 2016 DATA ARE:

“Confidence levels generally rise after a presidential election as the nation hopes for the best. Even though it is a highly polarized country, consumers for the most part have upbeat feelings about the econ- omy right now,” NAR Chief Economist Lawrence Yun said. “Stronger business and consumer morale typically lead to even more hiring and spending, which in turn encourages more households to make big decisions like buying a home. These positive developments would be especially good news for prospective homebuyers in the more affordable Midwest region.”

MIN LEE

The survey additionally found a growing disparity among renters who think it’s a good time to buy and homeowners who think it’s a good time to sell. On the cusp of the busy spring season, most households believe now is a good time to buy a home. However, confi- dence continues to trickle backward among renters. Fifty-six percent of renters said now is a good time to buy, which is down both from Q4 2016 by 57 percent, and a year ago by 62 percent. Eighty percent of homeowners, 78 percent in December 2016 and 82 percent in March 2016, think now is a good time to make a home purchase. Younger households, renters and those living in the costlier West region – where prices continue to spike – are the least optimistic. “Inventory conditions are even worse than a year ago. Home prices and mortgage rates are on an uphill climb,” Yun noted. “These factors are giving many renter households a pause about it being a good time to buy, even as their job prospects improve and wages grow. Unless there’s a significant boost in supply lev- els this spring, these constraints will unfortunately slow or delay some prospective buyers’ pursuit of purchasing a home.” •

ROBERT GREENBERG

SOURCE :: www.rentrange.com

SOURCE :: www.nar.realtor

SOURCE :: www.homevestors.com

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