ALTISOURCE RESIDENTIAL CORPORATION (NYSE:RESI) Files An 8-K Entry into a Material Definitive Agreement

Item1.01 Entry into a Material Definitive Agreement

On March30, 2017, Altisource Residential Corporation (the
Company) entered into an agreement to acquire up to 3,500 single
family rental properties from entities sponsored by Amherst
Holdings, LLC (Amherst). Additionally, on March30, 2017, the
Company completed the first closing under this agreement with the
acquisition of 757 single family rental properties for an
aggregate purchase price of $106.5million. The Company may
purchase up to approximately 2,750 additional stabilized rental
properties from the Amherst sponsored entities in additional
closings in 2017. In connection with this acquisition and the
contemplated future acquisitions, the Company entered into
several agreements, which are described in more detail in this
Item 1.01 and Item 2.03 below.

Purchase and Sale Agreement

On March30, 2017, Altisource Residential, L.P. (Buyer), a
wholly-owned subsidiary of the Company, entered into a Purchase
and Sale Agreement (the PSA) with Vaca Morada Partners, LP (VMP)
and MSR II, LP (MSR, and collectively with VMP, the Sellers),
entities sponsored by Amherst. to the PSA, Buyer acquired 608
single family rental properties from VMP (the Initial VMP
Properties) and an additional 149 single family rental properties
from MSR (the Initial MSR Properties, and collectively with the
Initial VMP Properties, the Initial Properties). to the PSA and
in connection with the Loan Agreement (as described in Item 2.03
below), Buyer assigned the right to purchase the Initial
Properties to HOME SFR Borrower II, LLC, a newly formed special
purpose entity and an indirect wholly-owned subsidiary of the
Company (Property Owner).

As consideration for the Initial Properties, Buyer paid to
Sellers $106.5million, which is subject to certain customary
purchase price adjustments in accordance with the PSA. The
purchase price was funded with the proceeds from the Loan
Agreement as well as cash on hand.

In connection with the PSA, and as a condition to the Loan
Agreement, Property Owner entered into a property management
services agreement to which the current property manager for the
Initial Properties and an affiliate of Amherst, Main Street
Renewal, LLC (Property Manager), will provide Property Owner with
leasing and lease management, operations, maintenance, repair,
property management and property disposition services regarding
the Initial Properties.

to the PSA, in addition to the Initial Properties, Sellers have
committed to sell and Buyer has agreed to purchase 1,493
additional single family rental properties (the Committed
Additional Properties). In addition to the Initial Properties and
the Committed Additional Properties, Sellers have agreed to use
good faith efforts, subject to market conditions, to offer for
sale to Buyer and Buyer has agreed to purchase up to 1,250
additional single family rental properties (the Good Faith
Additional Properties). The acquisition of the Committed
Additional Properties and the Good Faith Additional Properties,
if any, is to occur in up to two additional closings, the first
to be on or before June29, 2017 and the final closing to be on or
before December30, 2017. In order to be presented to Buyer for

purchase, the Committed Additional Properties and the Good Faith
Additional Properties must comply with certain criteria and
specifications identified by Buyer.

The foregoing description of the PSA does not purport to be
complete and is subject to and qualified in its entirety by
reference to the full text of the PSA, which is filed as Exhibit
2.1 hereto and is incorporated herein by reference.

Loan Agreement

The information set forth in Item 2.03 is incorporated by
reference into this Item 1.01.

Item2.01 Completion of Acquisition or Disposition of
Assets

The information set forth in Item 1.01 regarding the Initial
Properties acquired to the PSA is incorporated by reference into
this Item 2.01.

Item2.03 Creation of a Direct Financial Obligation or an
Obligation Under an Off-Balance Sheet Arrangement of a
Registrant

On March30, 2017, Property Owner entered into a loan agreement
(the Loan Agreement) with VMP and MSR, as lenders (Lenders), and
Amherst SFR Lender, LLC, as agent. to the Loan Agreement,
Property Owner borrowed $79,878,931 in connection with the
acquisition of the Initial Properties to the PSA (collectively
the Loan) from Lenders, representing 75% of the aggregate
purchase price of the Initial Properties. The Loan is a floating
rate loan, composed of eight floating rate components, interest
on each of which is computed monthly based on one-month LIBOR plus a fixed
component spread. The entire principal amount of $79,878,931 is
currently allocable to one component at a fixed-rate spread over
one-month LIBOR of 2.750% which is anticipated to be the weighted
average fixed rate spread for the duration of the Loan. The
initial maturity date of the Loan is October9, 2019 (the Initial
Maturity Date). Property Owner has the option to extend the Loan
beyond the Initial Maturity Date for three successive one-year
extensions, provided, among other things, that there is no event
of default under the Loan Agreement on each maturity date.