Institutional single-family rental investors are seizing opportunities to purchase iBuyer loans. These loans arm investors with a competitive edge to swiftly pursue and close opportunities, like large blocks of homes, which can help them gain market share.

"In a competitive residential real estate market, like we have today, it is very important for investors to be able to move quickly and nimbly to seize opportunities when they come up," Sloan Sutta, managing director at Crayhill Capital Management, tells GlobeSt.com. "That means not only are prospective purchasers looking for well-priced, scaled lending partners, as all real estate investors are, but they are placing an added emphasis on capital partners that can quickly diligence specific opportunities and execute on bespoke financing solutions. This allows them quickly capitalize on what might be a fleeting opportunity, such as a large block of homes for sale from an iBuyer."

The SFR market blossomed during the pandemic, and the return potential—many expect SFR to become as big as multifamily—has peaked lender interest. "Overall, the lending environment in the space remains robust, with both banks and non-bank financing partners serving as active lenders in this space, particularly as it relates to institutional SFR operators," says Sutta. "The continued strength of the securitization market and investor appetite for bonds secured by SFR properties has resulted in a similarly robust lending market supporting the front-end of asset acquisition."