Unique Mortgage Company Funding Loans With the Crowd

Pittsburgh, PA, July 22, 2015 (Newswire.com) - Tarpon Bay Capital has recently launched a platform to provide permanent financing for single family rental properties. Its unique crowdfunding platform provides borrowers with permanent financing and participating investors buy units of loan portfolios rather than individual loans. Other real estate crowdfunding lenders are providing short-term bridge financing which is best suited for "fix and flip" transactions but leaves rental property investors with few options. Tarpon Bay Capital provides borrowers with 20-30 year amortizations and terms up to 10 years. Participating investors can purchase units in loan portfolios for $5000. Portfolios will consist of 10-30 loans secured by first mortgages on 1-4 unit rental properties. Purchasing loan portfolio units reduces investors' risk associated with borrower defaults. The portfolio loans will have similar interest rate, term, geography and borrower profiles. 

Since the credit crisis, financing for single family rental properties has been scarce. The sub-prime lenders who also financed single family rental properties no longer exist. Agency lenders, Fannie Mae, Freddie Mac and FHA, account for 80% of newly originated mortgages and typically only finance owner-occupied properties. 'A' credit jumbo mortgages account for another 10-15% of the mortgage market. Real estate entrepreneurs seeking to build long term wealth by purchasing rental properties have been force to pay cash for properties. Due to limited competition and the need for financing, Tarpon Bay Capital is able to achieve risk adjusted yields superior to many alternatives by applying conservative underwriting guidelines. All participating investors must be accredited. (Accredited investors have a minimum net worth of $1 million and yearly income greater than $200,000.)