Private Equity/Bridge Lending/Hard money

Many strangers, friends and clients ask me what is” Private Equity lending “, “Bridge Lending” or  “Hard Money lending” and the general definition  is  

Private Equity/ Bridge Lending/ Hard money :

Private equity lending, Bridge lending AKA Hard Money  – Lending on collateral value (Real estate). This capital is sourced from a syndicate of different sources- hedge funds, Family trusts, Investment REITS.  This type of loan is used when speed is a factor on securing an asset (property) – Investors use this as a way to secure properties in distress. This type of financing is interest only, for 1-3 years. It is primarily used as a bridge between acquisition of an un-stabilized property (vacant or being renovated) and once property is “stabilized” and occupied, you would refinance with conventional commercial financing.

At HGRN we to keep it nice and simple and it means loans that are based solely on the value of the property, no credit or income is necessary for approval. The maximum we will lend is 50-60% of the transaction. This is not bank financing and the rates are usually higher.   Example- if you’re looking at a 100k property that may be worth 200k with some repairs.  You would buy the property so you can resell the property, AKA fix and flip

We will lend you 60k maximum no questions asked. No tax returns needed.  We can close the deal in 7-10 business days.

What Drives You?

The topic of success is very subjective. There are many different ways to measure success – here are some categories for example- financial, emotional, mental and spiritual.  If you speak to 5 different people you may get 5 separate, distinct answers.  I am writing this particular entry to discuss my motivator – it has changed as I evolved thru my life and I would like to illustrate when it changes.

Original motivator – poverty- knowing what it  is not to have. When I was very young we had very little – and I remember it very clearly- I remember hearing, “we cannot afford that” too many times,  I am not fond of those memories.

Young Adult as I was  going from middle school and then high school (I went to Lehman high school) I noticed that the college Guidance counselor would direct kids to schools that she thought were appropriate- I wanted to go to NYU – and although I didn’t have excellent grades- I am a very good test taker so I did well on my SAT’s.  So against her advice I applied to NYU (and a few backups) and I was accepted!

Working Thru college – I was working as an elevator man  at a building on 79th and Broadway in Manhattan – the name of the building is the “Apthorp  – I met an assortment of people who forever helped shape my perspective on life – among the tenants were

  • Rosie O’Donnell – actress and late night host
  • Cindy Lauper Pop star – “girls just want to have fun”
  • Nicholas Pileggi– writer of movie – “Goodfellas”  and “Casino”
  • Nora Ephron– movie producer – “sleepless in Seattle”, “ When Harry met Sally”  ( who was married to Nicholas Pileggi)
  • Michael Knight – soap opera star “ Days of our lives”
  • Kenneth Chenault– Chairman of American Express

Although we were not supposed to speak to the tenants – they would always be courteous and say hello and would converse with me.

The one thing I can say about each and every one of those people is that they all had a great attitude – they all had a great “vibration” 

They were always encouraging in whatever we spoke about and always told me, in their own way, that anything is possible – that stuck with me – I always felt that way myself, but where I grew up that was not the general consensus,  hearing it from people at the top of their professions, validated my beliefs – Although not one of those people looked like me -I knew that I was on the right path. Upon graduation from NYU, I opened and ran, a few small businesses before being introduced to my current profession/Passion of Mortgages and Real Estate.

Adult life – my family is my drive – my beautiful wife- my young sons – my mother- my sister – my nephews – my 53 cousins – (that’s a real number)

MY  “Y, is to be able to help- to help my family- to help my friends- to help my clients -even other professionals in my industry-whatever their goal is. I have a deep motivation to show my children that all these things that I speak about to them are possible- to Show thru hard work and discipline anything is possible.

I have a responsibility to help open their “minds”  to the endless possibilities that are before them, in their journey of life – to be someone they could identify with- someone who looks like them and talks like them and is successful in their professional and Personal lives – ( whatever the metric) .

I walk my talk…..  that drive is stronger today than it was when I was younger!