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

B2R Predicts Strong Year Ahead for Rental Home Market W 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