The single-family rental industry can be very good for the big players and the small players, but not very good for the guys in the middle.
Some mid-tier investors find themselves unable to get competitive financing because of the Federal Housing Finance Agency’s (FHFA) decision in August to end two pilot programs that made access to capital easier. Mid-level SFR investors, those who own between a few dozen and few hundred homes, are feeling the squeeze.
“There’s certainly a little hole in the market,” says Hubert Hultgren, co-founder of Golden Pacific Capital, a Kansas City, Mo.-based firm that owns 225 SFR homes in the region and was a recipient of a Freddie-backed SFR pilot loan.
Private lending offers some liquidity to the mid-tier investor, but the interest rates aren’t as favorable compared to those you can get from Fannie Mae or Freddie Mac.
Government action is needed.
Read on HERE:
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