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53 JEFFREY TESCH Host, 2022 Single-Family Rental Summit CEO, RCN Capital Jeffrey Tesch is responsible for overseeing the operations of RCN Capital, including sales growth initiatives, underwriting review with compliance oversight, and leadership of senior-level strategic planning. Joining the Company in 2010 as Managing Director, Tesch led efforts to develop a national brand in private lending with the best practices and transparent products for a diverse customer base. Since RCN's inception, Tesch has personally overseen over $3 billion in originations. His previous real estate experience was as an investor in both commercial and residential properties, ranging from single-family homes to commercial retail centers. He currently serves as a member of the American Association of Private Lenders' Ethics Advisory Committee and as an Advisory Council member for the National Private Lenders Association. What is the current state of the SFR marketplace and what do you see changing? As a lender, we're always concerned about value, right? We want to make sure that the customers aren't overpaying, we want to make sure that, from an SFR perspective, depending on economic conditions, they're going to be able to service their debt. So, there's been a lot of talk today about appreciation in asset values, but also, appreciation in rents. Rents have gone up nearly 20%. is morning, in the room, I asked the question of the audience, how many of you been able to raise rents? And it was maybe 20% of the room. When really, every hand should've gone up. How is the SFR sector utilizing technology in new ways? We have way more data to make our decisions, especially MSA-specific data. We want to know that our borrower is paying the appropriate price for the asset and that they're going to be able to cover the debt service by being able to get that MSA-specific data. I know where the current trend lines are in asset value, where they're projected to go, as well as the projective rent. MSA-specific data for a lender is huge, and it's made a big difference. Yes, we still get valuations, but it's the data behind the valuation that makes the difference. Do you think the changes and challenges of the pandemic have made it possible for more "mom- and-pop" investors to enter the SFR sector in recent years, whether it's from increased tech access or just people looking to change careers or income streams? Oh, without a doubt. But the reality is, the majority of the single-family rental industry is owned by small, individual investors. It's important to make them aware of new solutions, new tech, even leverage. I'm in the leverage business; I make mortgages.