Private Money411 Magazine - The Source for Real Estate Finance | Page 6

B2R Predicts Strong Year Ahead
for Rental Home Market
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About Tim Herriage, Managing Director and Head of
Marketing and Business Development A 12-year real
estate investment veteran, Tim has purchased more than
1,000 single-family houses, many of which he holds as
rental property today. He is the founder of the largest individual investor-focused trade show in the
U.S., the REI Expo, building on his passion for real
estate investing and the opportunity it represents for
those who want to take control of their retirements.
Tim Herriage also proudly served as a sergeant in
the United States Marine Corps.

hen B2R Finance
launched its
first products in
late 2013, it was
a game changer
for rental property investors.
The company
was among the
first to offer
a financing
option designed
specifically for
small to mid-sized
buy-and-hold real
estate investors.

short, these
homes were
unleveraged
because of a
gap in the market. B2R and our
competitors fill the
gap. As these smaller investors become more liquid, we
could see them pursue additional investment properties or reinvest in their current
properties, adding activity to the market.
Second, homes continue to recover value lost during the Great Recession. While
there is some speculation that declining
foreclosure activity might weaken the
overall opportunity, most of the investors
we encounter have always acquired sound,
cash-flowing rental homes from traditional
sources. Fewer homes underwater actually
mean an increase in the overall value of
our investors’ portfolios.
Changing demographics also serve to
bolster the SFR market. According to a
report from the Harvard Joint Center for
Housing Studies, 35 percent of households
rent, up from 31 percent in 2004, and of
them, 20 percent report no intentions to
buy, either because of macroeconomic
conditions, personal financial concerns or
for reasons of preference or lifestyle.
A growing renter base leads to lower
vacancy rates, which has led to favorable
rents for our investors. The average national effective rent rose 12 percent in the

Fast forward a year, and
the company is growing rapidly,
indicating a bright future for B2R and
the single-family rental market. This
year, accor