Toorak Capital Spends $ 500 Million Acquiring Long-Term Rental Loans To Investors
SUMMIT, NJ, January 25, 2021 / PRNewswire / – Toorak Capital Partners (Toorak), the largest provider of capital to the residential bridge mortgage industry, has announced a major capital commitment for its unique long-term rental loan program to investors. Toorak will spend up to $ 500 million over the next year to purchase these loans in response to the continued strength of the residential rental market and growing demand from investors using “fix-to-rent” strategies.
“Single-family rentals have been one of the best performing asset classes in 2020, and our rental investor loans are designed to meet the long-term needs of these rental investors,” said John Beacham, CEO of Toorak. “These 30-year term loans allow real estate investors to qualify for amounts of up to 80% LTV based on the future rents of the mortgaged property. The product is ideal for investors looking for mortgage options. longer term financing, including those refinancing a short term bridging loan or rehabilitation loan. “
Toorak, which has funded more than $ 5.0 billion in loans since its inception in 2016, continued to expand its platform for long-term lending to rental investors. “Over the past year, we’ve seen growing demand from the already favorable single-family home rental market as foreclosure policies impose a housing premium. Families are looking for quality long-term rental options, especially in suburban areas. Homes across the country continue to push home prices out of reach for many buyers, making single-family rentals an attractive option. “
To qualify potential borrowers, Toorak uses innovative credit guidelines that focus on rental property rents versus mortgage debt obligations (Debt Service Coverage Ratio, “DSCR”), instead of Typical borrower income used by the majority of residential lenders as debt. relative to income (“DTI”). Toorak’s high credit standards translate into de minimus losses across the Toorak portfolio – as well as regular securitization issues that attract strong investor demand.
To support the acquisition of long-term rental investor loans, Toorak has made significant human capital additions over the past five months, including industry veterans Carole Mortensen, Ketan Parekh and Frank Shiau. Carole joined as Head of Credit and brings over 20 years of experience managing over $ 30 billion in ABS, RMBS and CMBS transactions through her leadership roles at M1 Strategic Advisors, Waterfall Asset Management and Ready Capital, among others. Ketan joined as Head of Business Development & Capital Markets and brings over 25 years of experience in residential structured products, mortgage and real estate banking through his leadership roles at Invictus Capital Partners, Window Rock Capital Partners and Premium Point Investments, among others. Frank Shiau has joined as Head of Trading and brings over 13 years of entire residential loan and bond trading and securitization management experience to Fortress Investment Group, Shellpoint Partners, Ranieri Partners Asset Management and PWC . The company has also invested heavily in technology to provide its lending partners with real-time information on every step of the loan submission process.
To learn more about Toorak Capital Partners 30-Year Investor Lease Loans, please contact the firm at [email protected] or 212-393-4100.
About Toorak Capital Partners
Toorak Capital Partners is an integrated matching loan platform based in Summit, NJ. Toorak provides loans on residential, multi-family and mixed-use properties for small business purposes in the US and UK. Backed by global investment firm KKR, Toorak Capital Partners acquires loans directly from private lenders who provide high quality loans. The executives of Toorak Capital Partners have in-depth knowledge of mortgage lending in the residential and commercial sector with experience in real estate lending, financial markets, securitization, asset-liability management, asset management and credit. To date, projects funded by Toorak Capital Partners have renovated or stabilized homes for more than 17,000 families, an average of more than 500 families per month.
More information is available at www.toorakcapital.com.
SOURCE Toorak Capital Partners