Investment property lender LendingHome will be renamed to Kiavi



LendingHome, the maker of fixed-term mortgages, will be renaming Kiavi in ​​the coming months, a name that represents a discovery of the value of the country’s aging housing stock.

The new name is the English phonetic representation of the Italian word chiave, which means “key”.

“Looking ahead, we see an opportunity to further expand the ways we support real estate investors as we feel our approach can benefit all aspects of the investment lifecycle,” said CEO Michael Burke. “LendingHome is evolving into Kiavi to better express our commitment to real estate investors, beyond being viewed solely as a lender.”

In 2019, the company expanded from permanent renovations to lending to investors buying properties for renovation and renting out. Then, in 2020, he launched a Real Estate Marketplace to enable investors to buy and sell homes.

This year he launched a portfolio lease pilot project; One of the first results was a $ 9.3 million refinancing of a single-family rental community in Florida for Pintar Investment. The loan helped drive LendingHome’s sales to $ 219 million in March, or more than $ 200 million in its first month.

In August, LendingHome closed the $ 388 million revolving securitization of non-rated transition home loans. This is the sixth deal of this type of company, with the first happened in 2019. He also conducted six fixed loan securitizations. throughout 2016 and 2017.

Flip and correct activity among the types of investor buying that have been listed as a competition for both low- and middle-income people and first-time homebuyers decreased during the first quarter.

According to Attom Data Solutions, the first quarter ended with a coup of 32,526 properties, or 2.7% of all home sales – one in 37 transactions – during that period, the lowest since 2000. That’s down 4.8%, or 1 in 21 sales in the fourth quarter, and 7.5%, or 1 in 13 a year earlier.

The gross margin of the typical home flip nationwide fell to $ 63,500 in the first quarter of 2021. That amount is down from $ 71,000 in the fourth quarter of 2020, although it is still up slightly from $ 62,000 in the first quarter of last year.

Flippers used financing to acquire property in 40.8% of transactions in the first quarter, up from 42.3% in the fourth quarter and 40.1% a year earlier.

Of the $ 8.2 billion purchased by investors for restoration and resale in the first quarter, $ 3.3 billion was funded. That’s up from $ 13.7 billion and $ 5.8 billion in the fourth quarter and $ 14.6 billion and $ 5.7 billion, respectively, in the first quarter of 2020.

But the average time to coup increased to an average of 159 days in the first quarter, the lowest since the third quarter of 2013. This is below the 175 days average in the fourth and first quarter of 2020.

LendingHome has raised $ 241 million in capital since its inception in 2013, according to Crunchbase, including $ 75 million from Benefit Street Partners in the Series E round last December. During this time, he financed loans worth $ 7.8 billion.

“We wanted a name that expresses our intelligence, flexibility and innovative technical foundation,” said Burk. “Our new brand and look, which, like our technologies, are tailored for our future and driven by our desire to help real estate investors reach new horizons.”

He added that the rebranding to Kiavi will take place over the next few months, allowing the company to provide a smooth transition for its internal teams as well as customers and partners.


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