Landlord Friendly Financing? Seriously?

dennisfassett.comThis is pretty amazing.

I was looking around for some new ideas on how to finance additional rental properties, and I happened to find something that was pretty surprising…..

…… that a monster-sized hedge fund – BLACKSTONE no less – has started offering financing specifically focused on rental property owners.

Yeah. To say I was shocked was an understatement.

I mean, Blackstone has been the bad guy as they hoovered up all the good deals in many areas over the last several years.

But that has apparently changed.

I have never been very fond of conventional lenders. They don’t like rental properties, and back before and during the crash they kept making it more and more difficult to get their approval.

In fact, the process to get my 10th conforming mortgage took SIX MONTHS to accomplish. Partially due to the broker’s incompetence, but most of it was due to the lender changing he rules of the game as the game was being played.

So the fact that an organization is now landlord friendly is a great thing.

I’ve included the text from the press release below, and there’s a link to their lending site as well if you’d like to get more information.

Let me know how it goes if you decide to reach out to them.

Here’s the press release from Blackstone….

Blackstone Establishes Single-Family Buy-to-Rent Lending Platform

New York, NY, November 15, 2013. Blackstone today announced that funds managed by Blackstone Tactical Opportunities have established B2R Finance (“B2R”) to provide residential buy-to-rent mortgages for property investors, focused exclusively on the financing needs of single-family home investors. B2R’s products are tailored to serve investors with portfolios of five to five hundred homes nationwide.

Blackstone also announced the appointment of a senior management team composed of experienced real-estate finance executives from both the commercial and residential real-estate industry.

John Beacham, B2R’s President, has more than 17 years of finance experience, most recently as joint head of single-family rental home finance at Deutsche Bank AG. Mr. Beacham has managed the origination of more than $5.0 billion in single-family rental financings in his career. Jeff Tennyson, B2R’s Chief Operating Officer, has had a 20 year residential mortgage career, including 10 years as the Chief Executive Officer of EquiFirst, a large wholesale residential lender.

Jas Khaira of Blackstone Tactical Opportunities said, “We see a great opportunity to fund small-and -medium-sized investors in the single-family space to help them expand their portfolios. We are pleased to welcome the B2R team and look forward to building this business to support the growing single-family rental market.”

John Beacham, President of B2R Finance, said, “We saw a gap in the market where there was a lack of lending products for smaller investors looking to finance their single-family home portfolio. Few financing sources currently exist for this very significant pool of investors and B2R solves that problem.”

Jeff Tennyson, Chief Operating Officer of B2R added, “At B2R, we provide a range of products including fixed and floating rate options that are designed specifically to address the needs of this market and offer an efficient closing process.”

Further information is available at www.b2rfinance.com.

I'm a real estate investor in Metro Detroit.

My primary focus right now is wholesaling, but I also own a portfolio of profitable rental properties. And I work a full time day job.