Blanket Mortgages For Single Family Rental Properties

The purpose of this sheet is to persuade a financial institution of the lucrative nature of the Single Family Rental Industry.  Our goal is to provide high level information about the industry, how to structure the loans, and finally next steps.

Industry Statistics

• As of 2016, the U.S. Census counted a total of over 15 million single-family homes for rent in the United States and a total of over 26 million apartments for rent.
• According to recent data available from the U.S. Census Bureau, 805,000 households were formed in 2016. Of those, 434,000 were renter households. Strong job growth will encourage new household formation, particularly among millennials that have been living with their parents.
• Vacancy will reach a cyclical low. SFR vacancy is projected to decrease 30 basis points to 6.4 percent. Submarkets with a high number of new apartments could see a rise in vacancy.
• Vacancy: SFR vacancy is forecast to end 2017 at 5.1 percent, down 120 basis points annually.

       * (2017 National Single-Family Rental Research Report)

Financing Structure

• 10 + Home Portfolios
• 70% Loan to Cost/Value
• 5 to 7 year term on a 25 to 30 year amortization
• Rates can be in the 6 to 9% range Interest Only
• Fees can be 1 to 2%
• Non-recourse burn off options for 60% Loan to Cost.
• You could provide options to do back end participation to increase your yield
• Offer construction and permanent financing

Next Steps

This is becoming a huge industry and is over the apartment market at this point.  Now is the time to jump on board before the market is conquered.

For further discussion, please call us today at 480-219-1205.