LI private lender eclipses $100M in 2022 real estate loans

Source Realty Capital, a Greenvale-based private real estate lender and commercial loan broker, originated more than $100 million in real estate loans in 2022, which marked a record for the firm. 

SRC, which specializes in short-term real estate bridge loans for purchasing and renovating investment properties, originated 119 loans this year, consisting of 93 short-term bridge loans and 26 long-term rental loans, according to a company statement. 

Source Realty’s average loan amount this year was $840,336, with individual loans ranging from $100,000 to $7.6 million. For bridge loans, the average loan to purchase price was just over 80 percent, with an average loan to after-repaired value of 71 percent. The average bridge loan rate was 9.4 percent and for long-term DSCR (debt-service coverage ratio) loans, the average loan to value was 72 percent, with an average rate of 7.2 percent. 

“Despite the headwinds from higher rates in the second half of the year, 2022 was another record year of loan originations for us” John Femenia, SRC principal who founded the company in 2019, said in the statement. “Our continued year-over-year growth in loan originations is a testament to our ability to close loans even in a raising rate environment. Looking ahead, we anticipate the broader real estate market to be challenging in 2023. However, our borrowers are learning to live with higher rates, and we expect our origination volume to remain strong in the months ahead. While we expect a slight pullback in home values in 2023, we believe higher rates will create near-term opportunities for real estate investors that were unable to capitalize on deals during the post-pandemic housing craze.”