This is a great question, something we often see in the institutional LP world.

In fact, its so competitive in trying to buy a SFR owner financed note, that most note investors have gravitated to buying non performing, under performing or re performing notes from banking institutions, or the asset disposition firms that represent them.  

Of course, buying these loans need cash, most of the buyers are large institutions. 

But there are also syndications out there that charge more "institutional" level fees, say 1% acquisition fee, if any at all. 

All institutional lenders, DSCR, conventional and government send out disclosures that are very clear regarding the length of time and the percentages of the prepayment penalties. 

So, I finally wrote to them and this is the answer I received:  "Good morning Michaela,Thank you for reaching out to the R Street Institute.

My company, Rent To Retirement, does thousands of transactions annually with the largest builders in the country, and that is how we are able to take institutional type of discounts to pass that on to the individual investor in some of the best markets.

Many cities in Washington are adopting rental registration programs. 

Challenges were we bought from a large institutional group so definitely was fiercer negotiations than past deals!

They are your best bet for institutional.