About 43 percent of Americans live in rental properties, the highest percentage since 1965,
according to a Pew Research Center analysis. Tighter home-purchase loan requirements,
millennials with a desire for mobility and rising foreclosure rates in some areas of the country have contributed to growth in the single-family rental (SFR) realm. ● The triple play of
rising home values, increasing rent prices and flourishing interest from investors make SFRs
a smart choice for a commercial mortgage broker’s business-expansion efforts. For your
clients, there are other advantages to buy-and-hold residential investments, too, including
long-term income opportunities and tax benefits. ➔
Chief marketing officer | 5 Arch Funding Corp.
BY MICHAEL MILLER
53 ScosmanGudeCommecaEdon ScotsmanGudecomDecembe2018
©2018 Angel Oak Companies. All rights reserved. ©2018 Cherrywood Mortgage, LLC. All rights reserved. ©2018 Cherrywood Mortgage Corporation. All rights reserved. Cherrywood Mortgage
Corporation is a broker licensed corporation in California, License 02071375. Information is intended for Mortgage Professionals only and not intended for consumer use as de;ned by Section
1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Distribution to the general public is prohibited. Loan programs and rates described herein are subject to change without
notice and are subject to Cherrywood Mortgage, LLC’s underwriting guidelines and all applicable federal and state rules and regulations. Lending not available in the following states: AK, ND, SD.
Other conditions may apply. Cherrywood Mortgage, LLC broker approval required prior to loan funding.
800.819.4199 | email@example.com | www.cherrywood.com
We Listen. We Advise. We Fund.
At our core, Cherrywood Mortgage, LLC believes that property owners and investors are
underserved by narrow and in;exible banking guidelines. We designed our programs with this
in mind, o;ering more ;exibility than traditional lending sources without charging the high
rates a hard money lender would charge. We understand that every loan has a unique story.
We are ready to help you guide your borrower into a program that ;ts their needs.
• Loan amounts from $75,000 to $5,000,000
• Rates starting in low 6’s
• No tax return and bank statement programs available
• Multifamily, mixed-use, o;ce, retail, light industrial,
self-storage, mobile home parks and 1-4 unit NOO
• LTV’s up to 80%
• FICOs below 650 (case-by-case)
• Foreign nationals at reduced LTV’s
• Fully amortizing terms up to 30 years
• 1-2% YSP available
• Broker comp per fee arrangement,
no caps from lender
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of hardwood flooring, or granite rather
than marble countertops, to keep construction costs down or increase the
Of course, new-construction endeavors are not for the faint of heart or for
inexperienced investors. Buyers are at
the whim of builders and contractors,
so any construction delays can mean
revenue losses if the landlord can’t rent
the property according to their expected schedule. Obtaining financing for
speculative construction is often more
difficult, too, which could make newly
built SFRs the wiser choice.
Additionally, there are often opportunities to customize homes if investors
jump in during the preconstruction
phase. For build-to-rent homes, this