Realty411 Magazine The Future of Real Estate is Here | Page 37

Blackstone Unleashes
Financing Options
R
eal estate investors
looking for funding in
2014 could find this new
lending source and its President
one of their best allies…
On November 15th, 2013 investment
giant Blackstone made a major announce-
ment that changes the game for rental
property investors, and is likely to create
ripples which have the potential to pro-
vide a huge boost to the U.S. economy at
every level.
Former joint head of single family
rental finance at Deutsche Bank AG, John
Beacham, recently joined Blackstone
Tactical Opportunities’ new B2R Finance
lending arm as President. “B2R” has now
unleashed several stunning new mortgage
finance programs specifically designed to
aid small to mid-sized buy and hold real
estate investors with loans of $500k to
$50M.
The Major Pivot Real Estate
Entrepreneurs Have Been Begging For
In recent years some rental property
investors have felt significant pressure
from mega funds like Blackstone, which
according to Bloomberg, has spent over
$7B in acquiring tens of thousands of
U.S. residential rental homes. At the same
time, access to credit for those desiring
to capitalize on appetizing investment
opportunities in the market has been
incredibly restrictive, even for well-quali-
fied borrowers.
The B2R Finance pivot completely
changes these dynamics. The new buy
to rent financing source puts all of the
best of Blackstone behind the smaller
real estate entrepreneur to fuel their goals
for the new year, and long term passive
income generation and wealth building.
With access to considerable deal flow,
the capital to execute on it and a lending
partner that really understands their needs
the next 12 months promise to be an
exciting time for expanding portfolios.
In an interview with B2R President,
John Beacham, Realty411 got the inside
scoop on the firm’s new loan programs…
Making Buy to Rent Finance a Breeze
So what’s so notable about this new col-
lection of loan products, and lender, and
how easy is it to get funded?
Realty411Guide.com
By Tim Houghten

al nightmare scenarios in which they have
In our exclusive
run out of funds have proven them to not
January 2014 interview
always be the most attractive option for
John was quick to point
buy and hold investors.
out that while B2R
Blackstone’s B2R flips this all on its
Finance is a completely
head, and specifically provides critically
separate entity to Invi-
needed liquidity for those with 5 or more
tation Homes, it puts
rental homes, who are seeking loans from
all of that experience,
John Beacham
$500k and up.
billions in liquidity, and
This enables investors to re-capitalize,
understanding of the challenges investors
achieve leverage for expanding portfolios
face in this arena into backing the smaller
and is providing a massive cash injection
rental property landlord.
with wide reaching benefits which should
In fact, B2R is one of the only players
make life a little better for everyone.
in this segment of the market. Specifically
3 Steps to Success…
it is unique in offering tailor made loan
When asked about the advantages of
products for financing single family rental
working with B2R Finance, John Bea-
property portfolios with loan amounts
cham explained, the B2R management
between $500,000 to $50,000,000.
team has funded significantly
Mr. Beacham
more rental homes loans than
points out that
Loan Program
other institutions, pointing out
not only are
Highlights:
the benefits of the expertise and
approximately
• Easy 3 Step Loan Process
focus as “This is all we do.”
98% of the na-
• 30 Year Amortization
Of course what everyone
tion’s estimated
• 5 & 10 Year Terms
wants
to know is how easy it is
14 million sin-
• Non-Recourse Options
to get one of these loans…
gle family rental • Min. DSCR 1.25
John told Realty411 that
homes actually
• Low Cost
owned by small- • Loans from $500K to $50MB decision making on these loans
is primarily based upon the asset
er investors (not
and cash flow, the company offers non-re-
large institutional players), but “75% of
course options; providing fast funding and
those properties have been purchased with
no debt.” John goes on to highlight: “that’s a straightforward process.
Beacham was clearly very bullish on
over 10 million properties in the U.S. with
the outlook for rising asset values, which
no financing on them, much of which has
been picked up by entrepreneurs buying for investors should take as a great sign, and
indicator of an aggressive lending partner
their own personal portfolios”.
which really wants to make loans, and
B2R’s President comments that this
pool which represents around 1 in 10 of all a lot of them. According to the head of
the unit the borrowing process is really a
homes in America doesn’t remain unlev-
simple 3 step process:
eraged due to a choice, but rather a gap in
1. Call toll free on 800-227-8107 or apply
the market which has left investors sorely
online at http://www.b2rfinance.com/
underserved.
apply-now
Besides the strict credit requirements
2. Return the signed term sheet and
banks have set, investors in this segment
‘expense deposit’ for due diligence
of the market have been buffeted by
3. Close your loan
quirks in underwriting requiring extensive
paperwork and limits put on the number of Investors who are serious about improving
properties able to be financed. Hard money and growing their portfolios for 2014 need
to learn more about B2R Finance and the
lenders have tried to move back in, but
high fees, double-digit rates, and occasion- opportunities they offer.
PAGE 37 • 2014

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