Strong Demand for Small Loans Creates Unique Opportunity
Real estate investment is a capital-intensive business that relies heavily on debt capital to acquire, develop, improve, construct, renovate and maintain properties. We believe that the demand for relatively small loans, which we define as loans having an original principal of not more than $250,000 to acquire, renovate or improve residential real estate held for investment in Connecticut and the surrounding states, presents a compelling opportunity to generate attractive returns for an established, well-financed, non-bank lender like us.
We have competed successfully in the real estate investment market notwithstanding the fact that many traditional lenders, such as banks and other institutional lenders, also service this market. We believe our primary competitive advantage is our ability to approve and fund loans quickly and efficiently. We believe we are well positioned to capitalize and profit from the supply-demand imbalance for financing existing in our industry.
Originating attractively priced loans with strong credit fundamentals
We believe there is a significant market opportunity for a well-capitalized “hard money” real estate finance company to originate attractively priced loans with strong asset based fundamentals. We operate in the Northeast where real estate values in many neighborhoods are either stable or increasing and substandard properties are being improved, rehabilitated and renovated, we believe there are many opportunities for a “hard money” lender providing capital for these purposes to small scale developers. We further believe that our flexibility to structure loans to suit the particular needs of our borrower and our ability to close quickly make us an attractive alternative to banks and other large institutional lenders for small real estate developers and investors.