10X Capital Introduces New Income Strategy For Residential Real Estate

Mortgage News May 31, 2023

New York’s 10X Capital revealed the launch of its Residential Real Estate Income Platform, operated under the Tower1 label. Ray Sturm, an experienced real estate investment executive, has been recruited to oversee this new venture at the alternative asset management company.

Ray Sturm, the founder of two successful venture-backed asset management companies, recently served as the CEO of AlphaFlow, established in 2015 with support from Y Combinator, Point72 Ventures, and Social Capital. AlphaFlow managed over $1.5 billion in residential business purpose assets and conducted a securitization deal with Jefferies and Saluda Grade. Earlier, Sturm co-founded RealtyShares in 2013, receiving backing from General Catalyst and Union Square Ventures. After obtaining a JD/MBA from the University of Chicago, he embarked on his professional journey as an investment banker at Bear Stearns and Lazard.

10X Capital’s Tower1 platform offers investors the opportunity to access a wide range of residential real estate loans and rental properties throughout the United States. The platform concentrates on three key areas: Residential Transitional Loans (RTLs), Non-QM Residential Rental Loans (including DSCR), and the acquisition and management of Single Family Rental Properties (SFR).

Hans Thomas, the CEO and Founder of 10X Capital, expressed that the United States’ conditions, such as aging housing stock, limited new home construction, and increasing demand for single-family living, present excellent investment prospects in income-generating residential real estate. Thomas also emphasized the importance of data-driven organizations and the excitement surrounding Ray’s appointment as the leader of Tower1’s residential real estate rental income strategy, given his successful history in designing innovative investment approaches and implementing advanced asset management and capital markets technology.

During the past ten years, Ray Sturm has become a significant financier in the private lending sector, collaborating with more than 100 lenders in 43 states to provide capital to both retail and institutional clients. Since 2021, his investment initiatives have supported the construction and renovation of numerous single-family residences nationwide. Given 10X Capital’s expertise in utilizing alternative data and advanced technology in the residential real estate domain, the company recognizes a distinctive opportunity in today’s market.

10X Capital’s CIO, Russell Read, sees profitable prospects in the volatile real estate market. Converting short-term loans to rental properties and permanent loans attracts international investors, enabling U.S. real estate engagement. As interest rates near their peak, 10X Capital expects attractive asset prices ahead.

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