Real estate crowdfund lender Sharestates introduced a new program to provide financing to investors to purchase nonperforming mortgage loans.
The program will allow greater participation in this market, which was traditionally only available to investors that were able to purchase the nonperforming note through institutional trading desks, the company said in a press release.
Ordinary investors were previously shut out of this market by all-cash buy-in requirements, Sharestates added.
"As part of our mission and commitment to our community of real estate professionals, we are actively creating a streamlined financial participation matrix for borrowers and our buyers; starting prior to acquisition and evolving through the hold period of the asset(s)," Allen Shayanfekr, company co-founder and CEO, said in the press release. "Our capital markets team has been working diligently to structure the right programs, covering all asset classes for borrowers, giving them the flexibility they need to grow their portfolio of holdings."
This program is available in 46 states. The four states it is not available in are Nevada, North Dakota, South Dakota and Vermont, and that is because of licensing requirements, the company said.
Sharestates will provide financing for up to 80% of the unpaid principal value of the note, with the maximum available loan amount being $3.5 million. There is a two-year term for these loans.
In June, Sharestates rolled out a long-term portfolio loan program that provides financing for real estate developers throughout the lifecycle of their projects.
It is available in 30-year and 40-year terms, with the first 10 years being interest-only payments. Borrowers can cover three or more properties under a single loan.
