Kennedy Funding announced on Tuesday it will continue to close loans during the COVID-19 pandemic.
The Englewood Cliffs-based direct private lender said it closed a $1 million loan for a 3.82-acre waterfront property at 300 Central Island Road in Oyster Bay, New York. The borrower plans to use the proceeds to pay off the existing mortgage and debts. The property, which is currently listed for sale at approximately $3.3 million, is home to a 460-square-foot cottage and a 1,077-square-foot, three-car garage. It is large enough for a future buyer to subdivide into several units.
“We may be living through difficult economic times, but even with so many uncertainties, lucrative opportunities are still coming to the table,” Kevin Wolfer, CEO of Kennedy Funding, said. “The difference is, when traditional lenders all but totally shut down deal flow, we are still able to examine each opportunity and make a determination, without restriction, on which loans are worthy of funding, even during an event as unprecedented as a pandemic.”
According to Wolfer, there were tight restrictions in place across all deal types before the coronavirus made them even more strict.
“Even before COVID-19 took hold in the U.S., traditional lenders were already weary about approving loan applications due to low interest rates,” Wolfer said, adding that Kennedy Funding has noticed an uptick in applications for loans related to bankruptcies, workouts and defaults. “This resulted in belt-tightening which impacted all deal types across the board.”
Even though the lending environment has felt uncertain, Wolfer said certain sectors will continue to experience growth and demand.
“The world may feel frozen in place right now, but many are thinking toward the future and are continuing to pursue opportunities,” Wolfer said. “Traditional lenders are drastically tightening their already-tight rules for lending, not to mention increasing their minimum credit score requirements or refusing to lend to entire industries. We are committed to making up for this devastating gap in the real estate market.”