Lima One bulks up in single-family financing with RealtyShares deal

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Lima One Capital is buying RealtyShares Inc.'s residential debt origination business, redoubling its efforts in single-family investor financing.

RealtyShares is shedding the unit to focus on commercial mortgage lending. Financial terms of the transaction were not disclosed.

"RealtyShares has built a strong business in the residential sector of real estate investor financing by originating high quality loans that enable borrowers to make significant profits. Lima One shares these traits," Lima One Capital's CEO and founder, John Warren, said in a press release.

The commercial assets RealtyShares will remain focused on include multifamily, office, retail and industrial. The company, an online marketplace for real estate investing and financing, has been involved in more than 720 residential deals totaling over $200 million.

"RealtyShares will continue to be a diversified real estate investment platform offering a wide range of options to our investors," CEO Nav Athwal said in the press release.

RealtyShares, which is based in San Francisco, first began working with Lima One Capital as an institutional investor earlier this year and the two companies may continue to work as business partners.

Lima One and the RealtyShares unit are focused on the "fix and flip" single-family market, a popular and competitive online lending strategy aimed at serving investors in single-family real estate that repair and sell homes for profit.

Warren, a former Marine who named the Greenville, S.C.-based Lima after his military company in Iraq, founded the company in 2010. It has expanded over time from three states to more than 40.

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Originations Commercial lending Secondary market Mortgage technology South Carolina