Review Mortgage Lenders

Arbor National Commercial Mortgage

National Arbor Day Foundation Commercial (1986)

Television commercial for trees from The National Arbor Day Foundation. (1986)

ArborCrowd Wants HNW Investors to Understand the Appeal of Workforce Housing

ArborCrowd isn’t a fintech newbie trying to find its way in the world of real estate crowdfunding. Rather, it’s a crowdfunding member of the Arbor family of companies, which includes Arbor Realty Trust, a publicly-traded Uniondale, N.Y.-based REIT that specializes in direct lending, Arbor Commercial Mortgage and AMAC.

Founded in 2016, ArborCrowd pursues multifamily workforce housing investments across the U.S., with purchase prices ranging from $25 million to $80 million. So far, ArborCrowd has executed six deals, raising over $18 million in equity for assets valued at roughly $200 million on behalf of high-net-worth (HNW) investors and family offices. Arbor Realty Trust brings deals and sponsors to the table, with help from Arbor Commercial Mortgage and AMAC.

ArborCrowd targets IRRs from 12 percent to 15 percent in top-tier markets and IRRs in the mid-teens or low 20s in secondary and tertiary markets, according to Adam Kaufman, co-founder and managing director of the online crowdfunding platform.

10 Income-Increasing REITs to Buy

) Is another interesting REIT that doesn’t actually own properties, instead servicing the mortgages behind residential properties.

There are parts of a mortgage contract called Mortgage Servicing Rights (MSRs). An MSR provides a mortgage servicer with the right to service a pool of mortgage loans in exchange for a fee.

About 75% of MSRs are held by banks. But most banks aren’t interested in this aspect of servicing mortgages because of new banking regulations. The more MSRs they hold, the higher their reserve requirements and the less money they can put back into investments.

NRZ is going after MSRs. They’re a steady stream of income as long as the housing markets are stable to growing. And higher interest rates and home values will even help boost MSRs’ value.

NRZ has a $6 billion market cap, so it’s not hanging on by its teeth. And it’s delivering a whopping 11% dividend. The may only be up 8.5% in the past year, but that dividend certainly makes for an impressive total return.