Specifically, A10 will release a first-round funding of $830,000 to finance the acquisition of three multi-unit residential homes and the recapitalization of two other residential properties which Reichman Brodie already owns and has already renovated, representing a total of 13 single-family units serving the New Haven rental market. Over the next 12 months, A10 expects to finance at least five additional properties for the borrower through this facility.

The borrower, Reichman Brodie managing partner Barnett Brodie, uses a tailoring analogy to explain how working with A10 has been different from his experience with other lenders. “It's the difference between a custom-made suit and the suit off the rack,” he tells GlobeSt.com.

When a borrower approaches most other lenders for funding in the SFR space, says Brodie, “They'll send you their loan documents and say, 'this is our product. Either fit into the seat or get off the plane.' That's the end of the conversation. The Investor has to figure out how to mold himself into their product. A10 showed up and said, 'Let's have a conversation. Tell me about your business. What can we do better?' ”

Brodie has amassed a portfolio of more than 80 rental properties over the past years, valued at over $25 million. When he began putting the portfolio together, institutional investors were very active in the sector; they took advantage of the elevated foreclosure rates following the collapse of the housing market in 2008 to acquire hundreds of bank-owned properties at a clip.

“When I started out, there was a tremendous amount of foreclosures,” he recalls. “Some of the bigger investors were negotiating with the banks in order to buy the actual notes. But most of the Investors were waiting for the short sales to come on the market, waiting for them to go into foreclosure and buy them directly from the bank. And there were so many of them that the prices were greatly reduced.”

In common with the SFR REITs then active in the marketplace, “We were busy,” says Brodie. “We were buying at rapid rates. Every day there were new foreclosures coming on; there was enough for everyone. Over time, the market rebalanced, and the well dried up.”

Today, he says, “There's just a normal flow of business where the experienced investor can pick up a healthy amount of new acquisitions per year, without having too much of an issue,” He adds, though, “Ten or 12 of these investments isn't enough to keep the larger guy happy.” Accordingly, A 10 is gearing its SFR platform toward a maturing market and smaller investors.