Updated: August, 1 2022 | By: LendVer Staff –
Manhattan residential real estate is making a come-back as COVID concerns abate, but a faltering economy is leaving many questioning whether their access to financing may soon be impacted. Short-term, private and institutional real estate lenders also known as bridge lenders, can offer competitive financing solutions in transitional markets—and might be the only capital source property investors and developers can turn to should the NYC market head for another downturn. When traditional lenders tighten their purse strings, private or non-conforming lenders are often the first to see an uptick in business. Investment property owners facing vacancy issues, debt-service shortfalls or defaults, run to more flexible lenders for a quick remedy.
South End Capital is a top-ranked direct real estate lender offering streamlined purchase, refinance, fix-and-flip, construction, bridge, and cash-out loans in NYC and nationwide. Interest rates start in the 6% range for commercial and investment residential property financing up to $75 million. Interest-only or amortized financing up to 25-years is available with no prepayment penalties or exit fees.
Kiavi is one of NYC’s premier investment residential real estate private lenders and offers short-term loans to real estate investors and developers up to $3 million. Kiavi offers loan terms out to 30 years fixed, secured by investment residential real estate. Kiavi’s rates start at 6.625% and its loan origination fees are low when compared to other lenders. The firm will even fund rehab loans, and fix and flip loans.
There is no lack of condominium, mixed-use and multifamily developments under construction in NYC today—projects which could end up poorly timed and may come to market in the middle of a recession. Certain developers may end up facing issues completing projects or will have trouble selling units for a profit once completed. Private financing will be a go-to option for developers to take-out expiring institutional debt, while they plan their next move or wait out the market.
The good news is that NYC’s investment real estate market is still strong and record sale prices are still being set. An additional positive market sign is that an increase in competition among bridge lenders over the last few years, and an influx of investment capital, have driven the cost of short-term mortgages down drastically.
The verdict is still out on whether Manhattan residential real estate will be affected in the coming months. NYC has a plethora of neighborhoods and sub-markets that possess a variety of differing qualities, making it quite difficult to predict how the NYC market will fare as a whole. For the time being, investment property lending and institutional capital in NYC are still very active, and savvy borrowers can take advantage of inexpensive bridge financing to help complete existing projects or start new ones.