News Updates

RCN Capital Resumes Funding

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RCN Capital has resumed funding for both short-term fix-and-flip loans as well as long-term rental loans for non-owner-occupied residential properties. RCN is one of the first private lenders to re-enter the space with a full suite of financing options geared towards real estate investors. “As the real estate market and overall economy continue to search for stability following the enormous amount of volatility resulting from the COVID-19 pandemic, we are incredibly proud to relaunch all of our loan programs back into the marketplace,” said Justin Parker, head of treasury and capital markets. “As we navigate a new world post-COVID, we take a great amount of pride in being able to stand true to our customers and be there for them when it matters most.” The terms RCN is currently offering are slightly more restrictive. Specifically, with these new product offerings, customers will find slightly lower leverages and higher rates than what the company was offering pre-coronavirus. Given the fluidity of the market and indications things are starting to stabilize, RCN believes these guidelines will loosen. The company fully anticipates being able to provide clients with higher leverages and lower rates in the not-so-distant future. Vist the RCN Capital website for the company’s current loan programs and guidelines. Author admin View all posts

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Atlanta-based wealthtech platform GROUNDFLOOR has launched a new program to ensure that capital for residential real estate development continues to flow during the COVID-19 financial crisis. The new program allows investors to earn an additional 4% interest rate bonus for90 days on qualifying investments. “Our community of individual investors is a powerful force that is keeping the value chain of real estate finance moving forward on fair terms for all,” said GROUNDFLOOR co-founder & CEO Brian Dally. “The GROUNDFLOOR stimulus program rewards investors for stepping in to provide real estate entrepreneurs and developers with the funding they need to keep their businesses, and our economy, moving.” GROUNDFLOOR, which is not a fund or a pool, was founded in 2013 as a result of the Great Recession. The founders’ vision was to open private capital markets to all by making them more broadly decentralized and more resilient during challenging times. It was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors. The company has raised $22 million in equity capital from several sources, including venture capital and online public equity offerings. As of its most recent round of financing in 2019, the company is 20% customer-owned. Author admin View all posts

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Yardi has released a software update that allows residential property management companies to manage and track rent deferral payment plans and recoveries. The company fast-tracked the release of the update to allow property managers to accommodate residents impacted by COVID-19. “Helping property managers serve their residents and maintain business continuity is a top priority for Yardi. With unemployment claims skyrocketing, our clients were looking for ways to aid residents who are having a hard time paying rent during the coronavirus pandemic,” said Tamara Berndt, vice president of residential services at Yardi. “This solution can manage and track payment deferrals and recoveries on a large scale.” The deferral payment plan and recovery tool allows payment plans to be set up for residents who ask for financial accommodations, and it creates a recovery schedule of the deferred amounts. Once the deferral agreement is signed, lease charges are automatically created each month with the deferred amounts and recovery charges as appropriate. Gross potential rent isnot impacted. The new technology is available to Yardi residential clients, including multifamily, single-family, affordable and military properties. Author admin View all posts

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In late March, the U.S. Court of Appeals for the Federal Circuit upheld the district court’s decision to dismiss the patent lawsuit between Consumer 2.0, Inc. (dba “Rently”) and Tenant Turner, Inc. “We not only defended ourselves from Rently’s misguided patent, but we also defended the property management industry’s freedom to choose the best leasing software provider from the marketplace as it deems fit,” said James Barrett, Tenant Turner’s CEO. “Rently attempted to preempt the entire concept of self-access viewings. This is a huge win for renters and property managers everywhere.” Rently filed suit against Tenant Turner July 3, 2018, in the U.S. District Court for the Eastern District of Virginia. The court dismissed Rently’s complaint later that year following oral arguments and again in April 2019. Rently appealed to the U.S. Court of Appeals for the Federal Circuit May 3, 2019. Oral arguments were presented before a three-judge panel of the Federal Circuit Court of Appeals March 5, 2020. The court unanimously affirmed the District’s dismissal March 9, 2020. The patent in question broadly described the concept of self-access viewings of properties for lease by property management firms. The court dismissed the case in favor of Tenant Turner and stated the disputed claim in the patent is an abstract idea not valid for patent protection. Author admin View all posts

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Real estate development executive Michael Johnson has launched Raamp REIT (Real estate Asset Acquisition Management Portfolio). Raamp REIT is Arizona’s first exclusively multifamily, real estate crowdfunding platform and asset management company. Raamp REIT is structured as a real estate investment trust (REIT). It has a minimum investment of $2,500, and the fund is open to nearly all investors, including casual investors. By investing in the REIT, investors gain access to a diversified pool of commercial real estate investments with a single investment. The fund intends to invest in commercial real estate with a specific eye on multifamily. All rents are guaranteed by the Housing Authority of Maricopa County. Through this program, Johnson has become the State of Arizona’s largest subsidy rental partner. In addition to providing for adequate and affordable housing for those who are less fortunate, this fund is also designed to have low fees for investors. By offering Raamp REIT exclusively on its platform, Raamp.io affords investors direct online access to the product with no sales commissions. Offering expenses are capped at 3%. Johnson’s real estate team takes a relatively conservative approach when selecting transactions to offer for investment, investing only in cash-flowing properties. This approach will carry through to Raamp.io. “Through our focused investment strategy, we can invest in both debt and equity in our specific property types and it will allow us to be very opportunistic,” said Johnson. “We have two objectives for the fund: one is providing investors with both consistent cash distributions and two, the opportunity to benefit from potential appreciation in property values.” The launch of Raamp.io and the new REIT add to the wave of opportunity to invest in real estate. Until recently, private investment markets have been off-limits to many retail investors. Legislation such as Regulation A+ and Title III of the JOBS Act has leveled the playing field by allowing non-accredited investors making less than $200,000 a year to access these investment opportunities through online crowdfunding. Through Reg A+, Raamp REIT gives nearly all investors a new entrance to curated and pre-vetted private real estate investing. In February 2020, Johnson announced that his firm had surpassed $8 million in crowdfunded real estate equity and debt transactions since its inception in 2016. By the end of February 2020, Johnson’s real estate investment portfolio consisted of 13 multifamily properties, a boutique hotel and The Bread & Honey House Restaurant. Author admin View all posts

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ATTOM Data Solutions has launched its Building Permit data solution containing more than 200 million residential and commercial building permits nationwide. ATTOM’s building permit data provides users with insight into the life of residential and commercial properties, allowing for predictive analytics and decision-making. The data is updated monthly and covers 94% of the nation’s top cities. “Building permits identify key events in a property’s history,” said Sean Mooney, vice president of product management at ATTOM Data Solutions. “Knowing the types of construction or remodeling projects that have occurred on a property—as well as the cost and completion dates of that work—really empowers anyone who is assessing risk or providing valuation services to make more informed decisions.” ATTOM’s Building Permit data includes more than 30 permit classifiers (e.g., solar installation, foundations, roofing), permit status, cost of job, description of job, contractor information and more. Author admin View all posts