The aftermath of the housing market crisis, tightening of mortgage credits and changes in demographic trends that includes the millennial generation, has led to homeownership rates to lowest levels since the mid-1960s and a vibrant and growing single-family rental (SFR) market. Many investors who acquired portfolios during the financial downturn have grown their SFR portfolios into solid income producing platforms. There are many investors who are continuing to acquire assets in regions where yields are still attractive as a recent “Buy-to-Rent Analysis” from RealtyTrac pointed out. By partnering with Colony American Finance, investors are able to acquire and stabilize rental portfolios using innovative lender financing products that employ both residential and commercial elements.
The “fix and flip” housing market is also continuing to attract investors seeking a firm return on investment as the Q3 2015 U.S. Home Flipping Report, also from RealtyTrac, notes. Whether it is new entrants or seasoned investing veterans, the market for real estate investments of all shapes and sizes is strong. New methods to finance, acquire and manage SFR portfolios will continue to present themselves.
For investors who hold long-term rental assets, maintaining strong yields within their portfolio is critical for their success. Key factors include:
- Understand financing structures: When is the last time you assessed the financing structures of your SFR investment portfolio? Colony American Finance has seasoned financing experts who can walk you through your best options.
- Evaluate gross rents: How should you set up a strategy to optimize long-term performance?
- Manage expenses: What is the optimal portfolio mix and are expenses under control? This can be equally as important as producing income in the long term.
Colony American Finance is a boutique lender focused on providing financial solutions to real estate investors for non-owner occupied properties. If you are interested in financing an investment property, Colony American Finance can help. We offer term loans on portfolios of five or more assets consisting of single family homes, duplexes, triplexes, quads, condos, townhomes and apartment buildings containing up to 20 units. CAF also offers acquisition lines of credit starting at $1 million.