A finance company has been launched out of California that will finance investor-owned residential properties — a market that is reportedly in the trillions of dollars.
The lender, Dwell Finance, says that it will focus on capturing the best borrowers by providing a streamlined and flexible lending process that is easy to understand.
San Francisco-based Dwell Finance said that it provides both acquisition loans and term loans on investor-owned single-family properties.
It is a newly formed venture between 643 Capital Management and Five Ten Capital, a news release Tuesday said.
The two firms claim to be “leaders in the rapidly growing single-family rental business.”
643 Capital — which reportedly has a strong five-year track record investing and lending in the single-family rental business — and Five Ten Capital — which says it is experienced in mortgage origination, servicing and securitization — report combined purchases of more than 4,000 homes nationally.
“Our experience in buying, borrowing, and lending in single-family homes provides us with a roadmap for what does and doesn’t work in this business,” Dwell Finance Co-Founder Gregor Watson said in a news release. “We can offer effective financing solutions to both home investors and future bond holders.”
Dwell Finance Co-Founder and former Salomon Brothers mortgage investor Rob Bloemker said that he sees investor residential financing taking off in the next few years.
He explained that investor-owned residential properties fall into a void between the traditional commercial and residential mortgage markets — leaving more than $2 trillion in rental home without financing.
