Sharestates is offering to finance up to 80% of the unpaid principal value of the NPL
Sharestates, an online real estate investment platform, has introduced financing for non-performing loans (NPLs) aimed at providing private real estate investors access to leverage.
NPLs, which play a vital role in the mortgage market, have traditionally only been available to investors with liquidity to purchase the note through institutional trading desks.
Sharestates' NPL loan product, which is available in 46 states, allows private investors to participate in the market and expand their investment portfolios.
By offering to finance up to 80% of the unpaid principal value of the NPL, the crowdfunding company is opening up the NPL market up to a much larger pool of potential investors. Ordinary investors were previously shut out of the market by all-cash buy-in requirements.
"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)," Sharestates co-founder and CEO Allen Shayanfekr said. "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."
