A new lender podcast featuring another RealAtom customer – W Financial

Tyler WHITE:

🎥  Welcome everybody to the RealAtom lender podcast series, where you will learn more about the lenders on the  RealAtom platform and the organizations they represent.

🥷 My name is Tyler White RealAtoms heads of sales.  RealAtom is the industry’s number one, leading as a service technology platform, empowering commercial real estate lenders, like banks, credit unions, and non-banking organizations to generate more CRE loans.

🧲 Today. I have the pleasure of introducing TJ Randall with W financial. TJ, thank you for taking the time to present to us today. Let me pass it over to you to kick things off.

We have a lot of relationships with existing brokers who we protect and a lot of our clients are repeat borrowers.

by TJ RANDALL

TJ Randall:

🙌 Thank you, Tyler, for having me. W – Financial is a direct bridge lender based out of New York and we’ve been around for about 20 years, and we really value our word in our reputation. So if we’re saying we’re going to close a loan, we do. We have a lot of relationships with existing brokers who we protect and a lot of our clients are repeat borrowers. So we definitely value that.

🌎 We traditionally have been doing deals in strictly New York but we’ve done deals as far as Hawaii. And for that reason as of January, this year, I had moved to Los Angeles to open up our west coast office. And I’m pretty excited about it.

🆗 We typically do deals anywhere between 500,000 to 60 million. Our rates are anywhere between seven to 10% that is reverse mortgages. We do entertain doing second mortgages, mezzanine financing, and preferred equity. Those are generally a little bit on a higher rate, but I would say 90 to 95% of our portfolio is first mortgages. We can do deals for up to five years. I would say a typical deal for us is anywhere in between one to two, we have flexible prepayment options. We can make deals freely prepayable in certain instances or we can structure it in another way that would work for the borrower. Most of our deals are only some of the five-year deals that have strong cash flow. We entertain using an amortization option.

‼️ We can close deals in as little as 36 hours. But I would say a typical timeframe for closing is anywhere between one to two weeks.

So traditionally it started out by doing mostly just multifamily, retail industrial, some of the more standard asset classes. And we still do those a lot. But we have also broadened our scope and we’ve done more and more deals such as normal mobile home parks, some cannabis lending, and note-on-note financing. We particularly think there’s a lot of growth for us to lend in the cannabis industry and as they don’t really have access to the same capital resources that other, other asset classes do. So I’m gonna describe a couple of the deals we’ve closed in the past.

✅ The first deal is a deal in Greensboro, North Carolina, a borrower that we’ve had an existing relationship with, came to us with the deal that he was going down the road with another lender. But the other lender was unfortunately not able to close. So he came to us and said, I need to close a deal in three days. So we booked the flight. The night off flew down there, inspected the property and we’re able to close a deal for him in three days without having an index kid, an extension option. We were generally about 65% loan to cost on this. And we held money back to renovate apartments as the tenants’ role. 

✅ The second deal – This was an acquisition loan for a retail strip center in Los Angeles. The borrower was buying it as part of the development, and he was really seeing that that was really his purpose for it. We really looked at it as if it was going to be a retail shop center, and we got comfortable with the valuation based on that. The takeout for us on this one was going to be a construction loan. When the borrower got his plans. 

✅ This was one of the more interesting inspections. We got a loan request for a property in Hawaii. There was a single-family home and one of the lots and the other nine lots were going to be developed. All the borrowers had won an auction and then had it needed to close in about three days in order to close on the property. And we were able to get comfortable as it was a pretty low loan to cost. And we definitely were excited to do this one.

✅ This is a deal that is really more of a traditional deal that we’ve done, which was based in Manhattan and Brooklyn, which is where we are based. These were two properties, one in Manhattan, one in Brooklyn, the borrower, the property, and they’re both townhouses. The property in Brooklyn was already finished and renovated. So we were going to use the proceeds from that sale to peel down our loan. We also were going to hold back money to renovate the existing property in Manhattan. 

So this was on another deal that we closed very, very quickly.

✅ So this was an acquisition loan for a mixed-use development in the research triangle in North Carolina. We were about 65% loan to cost on this. And we were going to let the borrower buy the property and get his plans approved. And you’re going to be taken out with the construction loan. We’ve done a lot of these deals with the developments in high-density areas, and we’re definitely looking to do more. 

✅ So this was a refinance of an existing property or an existing retail shop center in Orlando. The bank was coming due and the borrower needed to close relatively quickly. So we were able to give him some money in some terms in order to refinance the big box stores. 

☎️ So if you guys have any deals that you think would fit as a potential lender please do not hesitate to reach out to me either by my phone number (212) 920-9908 or by email tjamesrandall@gmail.com. And I’d be happy to discuss any deals that you’re working on and to see if we could possibly be a fit.

Tyler WHITE:

🚀 Perfect, well, a special thanks to TJ and W – Financial for taking the time to present to us today. Like TJ mentioned, if you’re interested in speaking with him directly, please do not hesitate to give him a call, shoot him an email. If you’re interested in speaking with me between episodes feel free to send me tyler@realatom.com. And even more importantly, if you’re interested in learning more about RealAtom or the lender podcast series and how you can participate, please visit our website realatom.com. Thank you everybody for attending. And I will see you in the next episode. 

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