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Lima One Capital buys RealtyShares’ residential investor lending business

RealtyShares to focus on growing multifamily, office, retail, and industrial business

A few months ago, RealtyShares, which bills itself as the “leading online marketplace for real estate investing,” bought its biggest rival, Acquire Real Estate.

Both companies offer crowdfunded investments in commercial and multifamily real estate, but RealtyShares’ business is different because it also offers investments in single-family residential housing for “fix and flip” and construction loans.

As it turns out, that acquisition provided a clue about RealtyShares’ future, because the company is selling its residential lending business and plans to focus entirely on commercial and multifamily lending instead.

Late last week, Lima One Capital, a lender for residential real estate investors, announced that it acquired RealtyShares’ residential lending business.

According to a release from Lima One Capital, it began working with RealtyShares as an institutional investor earlier this year. Lima One said that the “quality of deals” on RealtyShares’ platform drew it to partner with the company initially.

And now, Lima One is buying RealtyShares’ residential lending busines, which will allow the company to grow its main business, providing financing for residential real estate investors.

The company currently offers several different lending programs, including a 30-year, fixed-rate, fully amortizing loan for landlords purchasing or refinancing residential rental properties; a 13-month bridge loan for investors who are buying and rehabilitating properties; and a multifamily program for the purchase or refinance of 5+ unit fix-and-flip properties.

“RealtyShares has built a strong business in the residential sector of real estate investor financing by originating high quality loans that enable borrowers to make significant profits,” Lima One Capital CEO and Founder John Warren said.

“Lima One Capital shares these traits,” Warren continued. “We look forward to working with their clients throughout the country who have grown accustomed to flexible loan products and exceptional customer service.”

According to the companies, Lima One Capital will continue to work closely with RealtyShares, utilizing its “deep pool of borrowers” to source residential deals that meet both companies' lending standards.

For RealtyShares, the deal allows the company to focus on growing its multifamily, office, retail, industrial and other commercial lending businesses.

“Lima One Capital has built an impressive track record, and this partnership will bring quality and diverse opportunities for our sponsors and investors,” RealtyShares CEO Nav Athwal said. “By working with one of the best residential real estate investment lenders in the U.S., RealtyShares will continue to be a diversified real estate investment platform offering a wide range of options to our investors while building best-in-class technology solutions for sourcing and underwriting commercial deals.”

Financial terms of the deal were not disclosed.

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