One real estate investment firm recently closed on over $140 million of note purchase and financing transactions during the third quarter of 2013. Madison Realty Capital’s strategy is to take on first mortgage loans along with a number of non-performing loans as well.
“We’re seeing a steadily increasing flow of loan origination and debt purchasing opportunities that suit our middle market focus,” the co-founder of MRC was quoted as saying. There has even been a great deal of repeat business among both borrowers and debt sellers.
During the third quarter, MRC financed $40.15 million for a hotel project, $31 million for an office conversion, another $7.5 million for a hotel, and $7.15 million for recapitalization of a mixed-use building.
Most businesses will be in need of commercial real estate collections attorneys when involved in these sorts of transactions. Without question any financing at these types of amount require a great deal of consideration and analysis. Not every business that wishes to enter into the debt purchasing market appreciates all of the risks that they will be required to take.
As the co-founder of this company notes, remaining in this business requires the ability to analyze and understand complex matters and to be able to close on financial deals quickly. It also requires a certain expertise and understanding of the real estate market.
Finally, though there are a number of financial incentives present to take on non-performing loans, these types of loans can be highly regulated. Not all of the regulations are entirely clear as to what is and is not permitted.
Source: National Real Estate Investor, “Madison Realty Capital Closes Over $140 Million of Loan Originations and Loan Purchases in 3rd Quarter,” Eric Waters, Oct. 21, 2013