Data Driven Direct Lender to Real Estate Investors

Industry

Real Estate

Company Type

Fix/Flip Lending

Location

US

Size

20-50 million

Investment Type

Debt

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Helping Great Companies Grow

Overview

➢New Silver is a technology enabled non-bank direct lender providing real estate-backed financing primarily for fix and flippers of single-family homes and 1-4 unit investment rental properties

➢Seeking $20-50 million to fund loan originations for the next 12 months and streamline the origination process

➢Founded in 2018; have made 127 loans with no losses (most loans have been sold to third parties)

➢Occasionally provides small balance commercial loans and longer-term non-QM loans for investment properties

➢Proprietary advanced technology provides automated loan approval, pricing and underwriting

➢Have made loans in NY, NJ, CT, MA, Fl, and RI – able to lend in 40 states

➢Partner with leading real estate data providers such as Attom and Clear Capital for market and risk assessments on each loan

➢Experienced team with deep expertise in real estate management, property development, investment and building disruptive technologies

Helping Great Companies Grow

Opportunity

➢About 7-10% of all US real estate transactions are fix and flip and single-family rentals

➢Management estimates that investment in fix and flip and single-family rentals was about $100 billion over the past year

➢Previously highly competitive sector, with numerous large and small hard money lenders dominating

➢Many hard money lenders, including New Silver, have relied on whole loan buyers to provide liquidity –source has essentially dried up due to COVID-19 and consequent economic downturn, leaving many lenders scrambling for funding

➢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

➢New Silver believes its technology is a critical differentiator

  • speeds up the origination process
  • decreases underwriting time and costs significantly

➢Other technology developments expected to increase borrower loyalty and provide new monetization channels

➢Significant loan volume growth in the past 12 months, including more than 200% during Q3 and Q4 of 2019

➢Pipeline of about $70 million in loan requests

➢Provides a variety of 1st mortgage loan solutions ranging from acquisition/construction loans to 30-year permanent financing for stabilized assets

  • heavily concentrated on short term bridge/hard-money products with 12-24-month terms
  • differentiated in the fragmented hard money space through its data driven approach to underwrite and price its loans in-house
  • offers fix/flip, refinance, and rental investment property loan products
  • average loan size of about $177,000 with average LTV of 70%

➢Geographic Diversity – currently able to lend in up to 40 of the 50 States in the US

  • targets significant value-add transactions in non-rural areas primarily in the Northeast with plans to expand footprint
  • data-driven lender, seeks areas with price appreciation and a robust sales environment
Helping Great Companies Grow

Management

Alex Shvayetsky

Managing Partner

25-year track record in real estate management, property development, and investment. Significant successful fintech and real estate experience in property management. CFO of Udolf Enterprises, a large CT-based commercial property operator, for 22 years. BS, Finance, University of Connecticut.

Kirill Bensonoff

Managing Partner

Experienced entrepreneur investing in and building disruptive technologies. Successfully built and exited companies in the enterprise IT space and helped over 30 early-stage companies as an investor and an advisor. Began career as systems consultant at IBM Global Services. Active investor in the private lending space for a number of years. Vision to help borrowers obtain the best user experience when securing a private loan, while using modem software to bring scale to the business. BS, Information Technology – Central Connecticut State University. Entrepreneurial Masters Program, MIT.

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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

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