By Stephan Kachani
Vice president, sales and marketing
Lone Oak Fund
Building Bridges in the REO Realm
Private bridge lenders could help some clients land prime deals
Banks find thEmsElvEs with an
unprecedented number of foreclosures,
real estate owned properties (REOs) and
delinquent loans on their hands. These
banks seek buyers who can pay cash
or who have a line of credit to get these
properties off their books quickly.
As a result, there is huge opportunity
presenting itself to real estate investors
with liquidity to buy in a downward market. For borrowers looking to cash out
their free-and-clear properties, or properties with minimal debt, now is the time
to join the game. Private bridge lenders
can be a huge resource for these borrowers and provide the competitive advantage brokers need to thrive.
The current climate is ripe for those
with liquidity to buy property and benefit financially. In the past, these opportunities were exclusively limited to the
wealthy. Now, these same opportunities
are open to the mainstream markets.
Banks are looking to dump their dis-
tressed assets in return for quick payoffs
and sometimes sell them at 25 percent to
50 percent less than their previous worth.
And new players — debt-and-equity
funds, hedge funds, wealthy individuals
and other businesses involved in the fi-
nancial markets — are forming to focus
on acquiring these distressed assets.
Today’s distressed real estate market
presents new opportunities that benefit not only those with capital but also
those with capital ingenuity. Deals no
longer simply go to the highest bidder.
In this hotbed of activity, success will
rely on strategic relationships and the
ability to move swiftly. Brokers should
help clients know the rules of the game
and align with the right partners to beat
the competition. •
Stephan Kachani is vice president, sales and
marketing, at Lone Oak Fund, a private mortgage fund larger than many banks. It makes
short-term loans typically ranging from
$250,000 to $10 million on commercial and
residential properties throughout California.
Kachani brings a unique perspective to his
role at Lone Oak with extensive experience
in residential and commercial financial
lending as a broker and a lender. Contact
him at (310) 826-2888, ext. 28, or stephan@
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