Kiavi, a company that provides real estate investors with non-QM financing, has closed a 12-month-term unrated residential transition loans (RTLs) revolving securitization amounting to $158 million.
Since Kiavi launched its securitization program in 2019, it has issued $2.75 billion in broad syndicated securitizations under its LHOME shelf marking its 11th transaction.
In light of the current macroeconomic challenges, the deal comes at a crucial time. New securitization investors who were previously priced out of the RTL asset class are now able to take advantage of rising yields, according to Arvind Mohan, chief operating officer of Kiavi.
With the securitization, Kiavi will be able to increase its funding capacity and expand its reach in the real estate investment market, according to a press release from the company. Kiavi has funded over $12.3 billion to over 5,600 customers since its inception in 2013 and has funded a record $4.4 billion loan volume in 2022 alone. Moreover, it noted that the lender funded more than 50,000 bridge and fix-and-flip loans recently, making it the first and only non-QM lender to do so.
With a growing popularity among real estate investors, fix-and-flip investment involves buying, renovating, renting, and then selling the property to make a quick profit. The technology-driven platform of Kiavi provides reliable capital to scale real estate businesses as well as competitive pricing to real estate investors.
Mohan said that the company’s technology and data analytics are helping them drive customer loyalty and credit outcomes, which has allowed Kiavi to enter 2023 with optimism. As far as loan units and volume funded, last year was a record-breaking year for Kiavi. As a leading financing partner to real estate investors across the country, they look forward to carrying that momentum into 2023.