Industry

Lending

Company Type

Flip/Fix Lender

Location

US

Size

$40  Million

Investment Type

Equity
For important risk and disclaimer information, Click Here.

Click to view Investor Presentation and/or Schedule Management Call.

To Access DataRoom, click Download NDA.

Helping Great Companies Grow

Overview

  • Crowd Lending is a vertically integrated lending platform that targets short duration commercial real estate loans secured by first lien mortgage loans – primarily fix and flip, multi-family buy and hold, condominium conversions, commercial, multi-use, industrial and raw land
  • The current loan portfolio has an unpaid principal balance of $95 million across 184 loans (includes loans fully on balance sheet, loans sold and managed and partial loans on balance sheet with managed third-party participations)
  • Seeking $40 million of preferred equity to fund loan originations and expand usage of $55 million of existing loan participation lines from senior debt providers
  • Loan portfolio is currently funded in part with approximately $20 million of equity, including almost $11 million from the principals and their families
  • Began operations in 2016 – originated over $184 million (through December 2020) in loans since inception
  • Target markets are primarily the Northeast
  • Diverse portfolio of loans consists of single-family fix and flip, multi-family buy and hold, condominium conversions, commercial, multi-use, industrial and raw land
  • Highly experienced and successful team with deep expertise in real estate loans, property development and real estate management
Helping Great Companies Grow

Opportunity

  • About 7-10% of all US real estate transactions are fix and flip
  • Fix and flip construction financing is $60-100 billion per year
  • Previously highly competitive sector, with numerous large and small hard money lenders dominating
  • Many hard money lenders relied on whole loan buyers to provide liquidity and these sources has essentially dried up due to COVID-19 and consequent economic downturn, leaving many lenders scrambling for funding
  • Funding requests have increased through the pandemic as the lending companies have dropped out of the space and more stringent underwriting guidelines have been implemented
  • COVID-19 has also created numerous buying opportunities for fix and flip companies as well as more favorable terms for the hard money lenders
  • Requires rapid, disciplined underwriting at competitive terms and certainty of closing
Helping Great Companies Grow

Solution/Strategy

  • Highly competitive and efficient lending platform – speeds up the origination process and decreases underwriting time and costs significantly
  • Provides short term duration loans to commercial real estate companies mainly secured by first lien positions
    • heavily concentrated on shorter term bridge/hard-money products with 12-24-month terms.
    • loan size range of $50,000 to $1,500,000, with 65% average LTV
    • total loans funded since inception: 410 (thru December, 2020)
    • total collateral assets: over $350 million (thru December 2020)
  • Target single-family fix and flip, multi-family buy and hold, condominium conversions, commercial, multi-use, industrial and raw land, mostly in the Northeast
  • Reliable source of capital for borrowers during the COVID crisis and beyond
  • Significant loan volume growth from 2018 ($37M in loans) to 2019 ($96M in loans)
  • Funding $29M in the first quarter of 2020 (pre-COVID). On pace to do $120M in loans
  • Access to two senior warehouse lines at favorable costs and advance rates
  • Management team has expertise to work out any problem loans to achieve optimal outcomes
Helping Great Companies Grow

Management

Christopher Fiumara

Founder

Entered the real estate industry in 1995 as a rental agent, and since has been a developer, owner, operator, landlord and lender. Has owned and managed over 300 rental units. Founded Suffolk Management, LLC in 2000 as a real estate development, management and consulting company. Under the Suffolk umbrella, bought and sold over $25 million worth of real estate. Has negotiated all aspects of real estate transactions with contractors, sellers and buyers. Founded Crowd Lending, Inc. in 2015 with Dan Najarian. Focuses on capital raising, sourcing creditable borrowers and long-term strategy. BA, Psychology, Richmond College, The American International University in London. Earned Certified Fund Manager and Certified Private Lender Associate designations from the American Association of Private Lenders.

Daniel J. Najaran

Chief Executive Officer

Real estate attorney licensed to practice law in Massachusetts and the United States District Court for the District of Massachusetts. In 2009, opened Najarian & Associates, LLC, a real estate law firm. Has represented buyers, sellers and lenders in over 900 real estate transactions. Has also represented landlords in real estate related matters since 2002. Founded Najarian Investments, LLC, which purchased over twenty single-family residential homes for rehabilitation and sale. In 2015, co-founded Crowd Lending, Inc. with Christopher Fiumara and has been the company’s CEO since its inception. Responsible for the day-to-day operation of the company including the vetting of both investor and lending opportunities. BA, Boston College. JD, Honors, Suffolk University Law School. Earned Certified Fund Manager designation from the American Association of Private Lenders.

Christopher Roche

Chief Business Development Officer

Extensive experience in complex real estate scenarios and underwriting analysis for private money bridge loans as well as hard money rehab loans. Since 2003, has been involved in many aspects of the real estate finance industry including real estate development, residential sales, private mortgage lending and distressed asset acquisitions. Prior to joining Crowd Lending, Inc., was a real estate broker for 13 years managing all aspects of the real estate process from analysis through closing transactions. Also researched and analyzed real estate market trends in order to advise clients on property valuation. BA, U Mass Boston.

Helping Great Companies Grow
Learn More About This Transaction

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

Sending

Log in with your credentials

Forgot your details?