24A — November 8 - 21, 2019 — Lender’s Directory — M id A tlantic
Real Estate Journal
Q&A wi t h Kea rny Bank’s Gary Brozowski
By Michael Mikhail, Stratton Equities Fix & Flip vs Hard Money Loans
continued from page 19A over $700 million in construc- tion and permanent financing for a variety of real estate transactions. Where do you think your largest growth area is and why? Expanding our multi-family construction and permanent loan program for developers and owners. What separates you from competitors? In addition to banking ex- perience, Kearny Bank real estate lenders have experience working for regional and na- tional developers, owners and investors of commercial and residential real estate. This level of insight is crucial to DELAWARE — Columbia Financial, Inc. , the holding company for Columbia Bank , announced that the company has completed its acquisition of Stewardship Financial Cor- poration and its wholly owned subsidiary, Atlantic Steward- ship Bank . Upon completion of the merger, each Stewardship stockholder became entitled to receive $15.75 in cash for each share of Stewardship common stock that they held at the ef- fective time of the merger. “We are excited to expand our presence in Northern New Jersey while continuing to ex- ecute our long term strategic SHORT HILLS, NJ AND NEW YORK — Investors Bancorp, Inc. announced that its banking subsidiary Inves- tors Bank formed an alliance with ODX, a digital small business originations plat- form and a subsidiary of On Deck Capital, Inc . Investors Bank will deploy ODX’s digital loan origination platform in a phased approach to enhance its small business lending program in select areas of its banking network. Investors, a full-service bank with $27 billion in assets and a network of 147 branches in New York and New Jersey, will leverage ODX’s digital loan origination platform to simplify lending to its small business owners, giving them quicker access to credit. “Investors is always looking for better ways to serve our customers, and in the case of our small and medium-sized businesses, we believe devel-
understanding our customers’ needs and delivering workable real estate finance solutions. Name some of the most unique qualities/reasons why someone should do business with your finan- cial institution? Kearny Bank’s Commercial Real Estate group offers a multitude of short-term and long-term real estate solu- tions for transactions ranging in size from $1 million to $25 million. Real estate developers appreciate our Construction to Permanent loan product which can alleviate future financing concerns for up to ten years after construction has been completed. and growth plans. We welcome the customers and employees of Atlantic Stewardship Bank to the Columbia family,” said Thomas Kemly , President and Chief Executive Officer of the company. Columbia was advised in the transaction by the investment banking firm of Boenning & Scattergood, Inc. and represented by the law firm of Kilpatrick Townsend & Stockton LLP. Stewardship was advised by the invest- ment banking firm of Sandler O’Neill + Partners, L.P. and represented by the law firm of McCarter &English, LLP . oping easier, faster access to credit products is essential,” said Bill Brown , chief retail banking officer, Investors Bank. “By leveraging the inno- vative and proven ODX plat- form, we can rapidly expand our digital capabilities and streamline our small business loan origination process.” The alliance with ODX will enable Investors’ small busi- ness customers to complete an online application in minutes using desktop or mobile de- vices and, if approved, receive funding from Investors in as little as one business day. ODX’s loan origination plat- form facilitates digital collec- tion of applicant and business information and instantly ac- cesses a variety of third-party data sources to gather and process credit and security information. Applicants can apply online or by speaking with Investors’ bankers in their local branches.
ix &Flip andHardMon- ey loans are among the most popular financing
report during the previous 24 to 36 months. Depending on the lender you are work- ing with, it can be important for mortgage originators to bring something dynamic to the table that can help you close these loans quickly and professionally. When youmove forward with a specific lender, make sure that you and your borrower know all the details of the loan program, why it’s being utilized and whether the program is being properly presented to suit your client’s needs. A true hard money loan is asset-based financing and is based on a loan-to-value (LTV) ratio set by the home’s appraised value. It doesn’t go through full underwriting so there is little to no minimum FICO score. This type of loan doesn’t have as many restric- tions as one might think. Bor- rowers do not have to worry about previous bankruptcies, foreclosures or accounts in collections. Due to the lack of guidelines and underwriting, a true hard money loan is often capped at 65% LTV or less. For example, you have an inves- tor client looking to purchase a home valued at $1 million. The client wants a $500,000 loan against the home (or 50% LTV), they should be able to receive the funds within one to two weeks from the day of ap- plication. This type of financ- ing is normally in the form of a bridge loan.. High-cost and predatory-lending regulations Chris worked 10-15 hour days and weekends, with ab- solutely no social life, living paycheck to paycheck. He had to find his own leads, often cold-leads, provide his own materials, and all for a less than mediocre payout. When his friend, Brendon Foster Stratton’s Branch Manager, told him about the innovative mortgage company and its unique benefits and opportunities, Edgcombe liter- ally got into his car and drove from North Carolina to New Jersey to join the team. Here’s a look into the mind, and heart of one of Stratton Equities’ top Loan Officers. Q. What’s one of the big- gest reasons you chose to
are one reason why hard mon- ey loans are only for invest- ment properties. Federal law limits or prohibits many high- cost loan features, such as bal- loon payments or prepayment penalties, for owner-occupied properties. Borrowers who run into financial trouble are less likely to repay their investment-property loan than the mortgage for their primary residence. Many states have non-ju- dicial foreclosure laws that allow a hard money lender to get their money back quickly if a borrower defaults on a mortgage. These foreclosure laws make the lender more comfortable doing a high-risk loan, especially if they are holding it and not selling it on the secondary market. The biggest misconception borrow- ers have is that many believe a hard money loan will have a high interest rate even if they are qualified and have a high credit score. The fact is, you can receive interest rates and terms that are similar to con- ventional financing while still retaining the benefits of a loan with no income-verification requirements. Hard money is not a blanket statement that covers all private money loans. Michael Mikhail is the founder and CEO of Strat- ton Equities, the nation’s leading direct hard money and NON-QM lender to real estate investors, with the largest variety of mortgage programs. A. I really felt that I had reached a plateau at my last job and that I would always be stuck. There wasn’t any room to grow or excel in the company, therefore making financial freedom impossible. Stratton gives me the flex- ibility to live my life, work at my own pace, and with the highest paid commissions that I’ve ever encountered in the industry. Q. What’s the most signif- icant difference between your previous job and Stratton Equities? A. It’s what most people would consider the little things; relationship with colleagues, relaxed dress code, and a good work atmosphere.
programs for investors in s ingl e and multi-family homes. Al- though they are two dif- ferent prod- ucts, many people both
inside and outside the mort- gage and real estate industries believe they are the same, however, this is furthest from the truth. Mortgage origina- tors who work with these types of borrowers should know about the array of loan programs that are designed to meet clients’ financing needs. There is something for every- one, regardless of the type of investor and their loan scenario. Fix-and-flip loans are a pop- ular form of asset based financ- ing. It is typically short-term financing of 12 to 18 months that is used to acquire property and renovate it. Contrary to hard money loans, fix-and-flip loans are commonly sold on the secondary market and undergo a full underwriting process with tighter guidelines. Depending on the lender, fix-and-flip loans may have a minimum FICO score require- ment. The borrower is less likely to be approved if he or she has any late payments, judgments, foreclosures or bankruptcies on their credit
Columbia Financial completes Stewardship Financial Corp. acquisition
Investors Bank selects ODX Platform to begin digitizing small business lending
Q&Awith StrattonEquities’ Chris Edgcombe Stratton Equities is at a turning point, the largest mortgage equities firm in the wearing a shirt and tie with 3,999 other loan officers. move to NJ and join Strat- ton Equities?
country has a pr ob l em t ha t mo s t c ompan i e s wou l d k i l l f o r . T O O M U C H BUSINESS! M i c h a e l M i k h a i l ,
Stratton’s CEO, has stacks of hot direct leads sitting on his desk ready to be handed out to experienced hungry loan officers. One of those loan officers is Chris Edgcombe, a young hot-shot, who like others in his profession, was previously stuck in a company that kept him in a box (a literal box)
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