Could crowdfunding help finance rental investments?
Industry expects 5 more securitizations this year alone
The REO-to-rental emerging asset class is often charged with the disproportionate presence of investment speculators.
In the halls of the Boca Raton Resort & Club, home to the IMN REO-to-rental forum underway now, there is plenty of money talking about large amounts of property volume.
However, dumb money it is not. And there are some pretty innovative financing ideas being thrown about.
And it seems fitting — sitting down to a lunch of Greek salads, outside by the pool and overlooking million-dollar yachts bobbing in the marina — that we talk about how to make money work for this nascent asset class. (By the way, I assumed the typical yacht costs a million dollars, and so did everyone eating lunch with me.)
For the most part, the space remains dominated by big players. Everyone is talking to everyone so I won’t name names right now. Some firms prefer to hold properties on portfolio and are looking to Boca to help source asset managers and service-related vendors.
Others finance via securitization, with all eyes on the third deal pricing tight earlier this week. Another five securitization deals are expected this year alone.