Build-to-Rent Loans (BTR/BFR) are designed to support the development of purpose-built rental properties. This emerging real estate model addresses the growing demand for high-quality rental housing.
In a BTR project, an investor or developer builds single family homes or multi-unit residential buildings with the intention of renting them out to tenants rather than selling individual units. Built to Rent loans are used for land acquisition, construction, and long-term financing to create rental property communities.
Benefits of Built To Rent
Minimum Loan Amount $200,000
Minimum Credit Score 650
To qualify for BTR Financing - borrowers must have previous Ground-Up Construction experience.
Build To Rent loans offer several advantages to developers, investors, and tenants. Developers benefit from streamlined, cost-effective financing options that can help bring rental projects to market faster. Investors can enjoy a steady income stream from rent payments while potentially benefiting from property appreciation over time.
Higher Loan-to-Cost Ratios (LTC)
Flexible Draw Schedules: BTR loans often feature milestone-based draws.
Lenders typically evaluate the strength of the rental market, projected rental income, and the developer's experience.
BTR loans often come with longer terms to match the long-haul investment nature of the rental market.
Provide High Quality Housing for Residents
As the demand for purpose-built rental housing continues to grow, Build To Rent loans have gained momentum in the real estate industry. They facilitate the development of much needed, high-quality rental communities for local residents.
Tenants and their families can enjoy the benefits of housing that is professionally managed, has modern amenities, and offers a true sense of community.
