Non-bank lender Arixa Capital will begin selling some of its fix-and-flip loans, which carry a 8%-10% loss-adjusted yield, directly to investors in the next few months, according to Jan Brzeski, chief investment officer.
Currently, accredited investors are only able to invest in the lender's fix-and-flip loans through the lender’s two funds, Arixa Secured Income Fund and Arixa Fund III. Adding whole loan sales to its funding strategy will help Arixa offset the coupon pressures in the fix-and-flip market, as many more players have entered the space in the past year, Brzeski said. The move will also allow the lender to tap a new pool of investors that prefer to actively select loans.
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