San Diego, CA – July 6, 2015 – Greyzdorf LLC is a new firm backed by a $4.0 billion real estate private equity firm that is focused on placing various debt investments instruments secured by residential portfolios throughout the United States. Greyzdorf is also planning to do an IPO that it expects to be completed in about 90 to 120 days.
Since 2013 the single-family rental market has seen its first rental bond securitization completed and Institutional players have invested more than $25 billion in the SFR industry, buying more than 250,000 homes. They still represent less than 2% of the total market of 14,000,000 rental homes, according to industry estimates.
The biggest difference between single-family home and a multifamily property is that if a multifamily property loses tenants, it loses a lot of its value. The benefit of investing in a single-family home is that it doesn’t trade on a cap-rate basis. Even if it doesn’t have a tenant, it still has resale value.
Now market participants are preparing for the next phase of single-family rental (SFR) bonds financing smaller batches of rented out homes. Targeting smaller landlords is the natural next step in the evolution of the SFR securitization market. In the $2 trillion rental finance market over 90% of landlords own less than 10 properties.
Greyzdorf’s joint venture platform targets 90% of landlords owning 10 or more properties, as well as turnkey and buy & flip rehabbers with non-recourse no collateralized credit lines. Through joint ventures Greyzdorf is both the funder and buyer for SFR rental homes.
Example: For smaller landlords looking at selling their single-family rental portfolios, Greyzdorf provides inventory credit lines. Just like car dealerships with new cars sitting on the lot, landlords often have inventory of rented homes on their balance sheets for sale.
Greyzdorf is the first to bring to market an expedited selling platform utilizing single family rental portfolios as “Inventory”. Under an approved non-recourse inventory credit line, a landlord with 10 or more properties valued at $1M or more may be able to draw down on a payment for 75% BPO value or greater.
Ownership of the inventory (rental homes) will be contractually transferred to a Greyzdorf SPV (special purpose vehicle) awaiting securitization. Greyzdorf pays the inventory’s credit line interest rate upon securitization.
Landlord’s inventory credit lines are subject to credit approval and a minimum SFR value of $1M, no maximum. A non-binding Term Sheet can be sent out in 48 hours and Inventory Credit Lines are approved within 4 to 5 weeks. Upon completion of the title work the non-recourse sale is completed. Broker’s commissions are the responsibility of sellers. Email Company details for confidential conversation.
An additional focus of Greyzdorf is the internal trading control for their SFR rental bonds, SFR equity call options and SFR rental cash flow certificates. Internally maintaining the profitability of the capital market spreads provides an additional revenue source.
Insurance companies, pension funds, mezzanine funds, equity funds and trusts are big investors in private placement securities. For Greyzdorf with an eye on growth, these securities provide stable sources of capital exempt from public registration under the Securities Act of 1933.
During the last 2 years there has been a shift in the capital market industry, especially in the way people invest in SFR private deals. Thanks to the JOBS Act, accredited investors can now find Greyzdorf private placement deals online. In the past few years, real estate investments have outpaced almost every other sector in terms of capital contributed to private projects.
Previously, smaller investors did not have access to the type of SFR deals that the institutional players had. Greyzdorf’s use of online private placements is emerging as a path for smaller investors to pool their money together and achieve the same results as institutional players with added benefits of geographical and risk diversification and professional management.
For accredited investors Greyzdorf utilizes a trusted third-party partner to provide all of the services needed to complete a private placement securities transaction. They provide all functions including investor accreditation, regulatory filings and escrow.
For more information, please use the email address below.
IPO Information | Info@Greyzdorf.com
Landlords Inventory Credit Line | Info@Greyzdorf.com
Institutional Investors | Info@Greyzdorf.com
Accredited Investors | Info@Greyzdorf.com
Turnkey and Buy & Flip Rehabbers | Info@Greyzdorf.com
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