Loans

Due By the First delivers non-traditional commercial property loans in record time for their clients : NYREJ

Due By the First delivers non-traditional commercial property loans in record time for their clients : NYREJ
Written by Publishing Team

186 Nassau Street – Brooklyn, New York
922 Barreto Street – Bronx, New York

Carl Bliss, New York Due By the First (DBTF) specializes in short-term bridge financing for commercial properties in the greater New York area, Long Island and Lower Westchester, where deals go through quickly.

By utilizing superior experience and local knowledge, DBTF (dbtfny.com) is able to quickly achieve an on-demand-to-finance deal for those often unable to obtain conventional bank financing. Developers who need a loan quickly, borrow from the DBTF to convert a deal request into a loan for acquisition, permanent financing and business debt acquisition.

Strong local relationships and rapid turnaround are key to DBTF’s reputation as a one-stop shop for commercial or residential loans where underwriting is based on the value of the asset, not the customer’s credit rating. Most loans only take days of completing a property report, and developers see the value in saving time and quickly closing their deals, although the interest rate on the loan may be slightly higher than traditional banks/institutional lenders.

“Our underwriting is primarily based on the value of the assets,” said Matthew Murphy, portfolio manager at Long Island-based DBTF.

318 Fifth Avenue – Brooklyn, New York
1145 Park Avenue – New York, New York

The company with the “attractive name” takes on new and managed deals and is aggressively seeking opportunities to create and buy loans on commercial real estate.

When individuals need money for acquisitions, permanent financing and business debt acquisition, many turn to DBTF to get the deal to a quick fix. “Since the COVID pandemic, we’ve also seen clients turn to DBTF to navigate foreclosure rescues,” Murphy said.

What makes DBTF unique besides having a recognizable name, is that the company is not involved by institutions or banks that have to meet certain criteria. Strong local relationships and rapid transformation have been the basis of the company’s success since it was founded in 2014 by industry leaders.

“We work hard to build and maintain a great relationship with both the borrowers and the brokerage community,” Murphy said. “Rest assured that when you receive your transaction request you will receive a response from us in one business day. We guarantee fast closings, within days of receiving your address report.”

DBTF does not ask for ratings as most banks do; Or even environmental reports. They do their own evaluations. “We do not pull credit reports on any of our clients, as lending is based on the value of the assets which gives us greater flexibility,” Murphy said.

“People who listen” is what DBTF does best and helps structure all of the company’s loans to specific client needs. DBTF loans are mostly funded directly from the company’s own capital, but they take partners on a few occasions.

The value of the loans is usually between 60 and 70%, which means that the loan is structured according to the value of the property. The average interest rate is 7 to 12% on each loan and is competitive with market rates on this type of loan.

Last year, a $30 million DBTF was created with a $25 million portfolio. The company’s average loans range from $1.5 to $3 million, but it has done deals as low as $500,000 and as high as $10 million.

Murphy said the COVID pandemic hasn’t changed things for them except that, “We’re much more diligent and we’re taking a closer look at retail and office properties.” “We still make huge loans.”

Some of the recent loans closed by DBTF include:

New City Garden Apartments: DBTF provided 100% financing on the acquisition of 29 multifamily garden-style housing units in New City, New York. This was a property sale where the buyer had to close quickly. DBTF quickly realized the below market selling price and was able to provide fast financing.

21St St. In Astoria JV: DBTF provided funding for a joint venture development site. This site will be redeveloped into a new 12-storey mixed-use property with 40 apartments and retail space on the ground floor.

Woodside Construction Loan: DBTF has provided construction financing for a stalled project in Woodside, Queens. The developer needed funds to push forward his 12-unit mixed-use project. The DBTF provided the capital to complete the project with an estimated completion date of January 2022.

Bayside Bridge Financing: DBTF has provided the borrower with the refinancing of a vacant two-storey mixed-use building in Bayside, Queens. The building has sustained structural damage due to ongoing construction on the adjacent site. The borrower had a conventional mortgage maturity and was not able to secure conventional financing.

Nassau County, New York: The DBTF has provided funding to a business owner at three properties in Nassau County to provide the cash needed to pay open taxes on business due to the COVID pandemic.

Eastchester, New York: DBTF provided funding for a one-story retail building in Eastchester, New York. The landlord faced default and was in danger of losing his building due to foreclosure.

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