July 26, 2023
Amid a rapidly evolving economic landscape in the post-COVID era, nobody has been immune to financial upheaval - the real estate industry is no exception. Defaults and foreclosures are unfortunate realities in periods of elevated interest rates that most investors, landlords, and tenants must contend with.
We Lend, a New York-based private lender, has engineered a method by which almost any investor can refinance bad debt, and maintain control of the underlying asset while staving off foreclosure. Avoiding foreclosure is crucial for any investor hoping to build a portfolio because most lenders, including most private lenders, will flag any borrower with a foreclosure on their background.
We are committed to helping investors overcome these obstacles and secure their investments.
On April 9th, 2023, We Lend affirmed its dedication to investor success by extending its inaugural rescue capital loan in Brooklyn, NY. This restructuring of debt involved a townhouse whose GLA across two units totaled 2,205sf. The loan, which totaled $1.86MM, allowed the borrower to reposition their asset, and effectively prevented the property from being turned over to the bank. Almost as importantly - when the asset was repositioned, the duress on the borrower from crushing default interest was instantaneously alleviated.
Looking at this from 35,000 feet, the importance of expertise and strategic financial intervention cannot be overstated. Rather than accruing default interest ad infinitum at about 24.99%, or losing the underlying asset entirely, this borrower maintained asset control.
This was the genesis of the Rescue Capital program. In one of their quarterly meetings in early 2022 - investor default was the number one impediment to sustained growth. Operating with the underlying assumption that interest rates would, eventually, rise, We Lend began laying the framework for this program. Solomon Suleymanov, Director of Originations at We Lend, noted “we know that for a lot of these non institutional-grade investors, these assets are their retirement plans, they’re assets for posterity, and it is vitally important to maintain control.”
“In our journey thus far, we have embraced the philosophy of adapting to change and using it to fuel our growth” says CEO, Ruben Izgelov. “We continuously strive to stay ahead of the curve by anticipating our clients' needs and developing innovative strategies to meet them. We understand that each property and each investor is unique, and that's why we're dedicated to providing customized financing solutions tailored to each individual scenario.”
Whether you're an investor looking for your next opportunity or a borrower in need of innovative financing solutions, we invite you to reach out to us. Let's discover how we can work together to turn your financial goals into a reality. At We Lend, our dedication to our borrowers’ success is unwavering, and we strive tirelessly to ensure they receive the best financing options. Talk to us today and Experience the We Lend difference.
