CURRENT ISSUE
PHOTOGRAPHY: EA Photography
COVER STORY
Featuring John Femenia
John Femenia founded Source Realty Capital in 2019 to help real estate investors get the capital they need to close deals. In the wake of the Great Recession, many traditional banks backed away from smaller real estate investor loans. This created a huge void in the market, as many experienced real estate investors were unable to get funding for their projects. Many of these real estate investors turned to hard money lenders to fund their deals. As the market for hard money grew, so did the interest from institutional investors. Source Realty Capital bridges the gap between real estate investors and institutional money.
At Source Realty Capital, John Femenia has overseen the Company’s growth from a start-up to over $100 million a year in originations. Source Realty Capital focuses exclusively on 1-4 family and small balance multi-family properties. This has allowed the Company carveout a niche for itself and effectively deliver capital to experienced real estate investors.
“At Source Realty Capital, our biggest lending product is a value-add bridge loan. A value-add bridge loan is used by borrowers looking to buy and renovate properties that are in need of restoring. One borrower that we’ve funded numerous deals for focuses on buying and renovating brownstones in Brooklyn, NY. This borrower uses our value-add bridge loan to purchase and renovate the properties. Once the properties are completed, the borrower rents out the units and then refinances our bridge loan with a permanent long-term loan. Since the borrower was able to create value during the renovation, they’re able to pull out cash with the refinance. This borrower then uses the cash-out from the refinance as a down payment on their next purchase. This process has allowed our borrower to build a portfolio of over $15 million worth of properties in Brooklyn. And in addition to our borrower building equity, the neighborhood that their invested in has benefited from the addition of newly renovated properties.”
AND MUCH MORE IN LUXURY LIFESTYLE AND BUSINESS…