Excited to share that Tara Sauerbrey successfully closed a $7.8 million bridge loan across four luxury homes located steps away from the ski slopes in Park City, Utah. The client refinanced to facilitate the sale of the properties. Fidelity structured a 12-month bridge loan with no prepayment penalty to provide the necessary flexibility. #BridgeLoan #CRE #ClosedDeal #FidelityBancorp #RealEstateFinance See more fundings here: https://lnkd.in/eRidtQ8U
About us
Fidelity Bancorp Funding is a bridge, multifamily and commercial mortgage lending firm located in Orange County, California. With over 25 years in business and $15+ Billion funded, we have earned the trust of 11,000+ clients. Fidelity Bancorp Funding serves as a leading provider of bridge and permanent financing on a national basis providing quick loan solutions catered to our clients’ needs. Multifamily, Commercial, 1-4 Unit Investment Property loans ranging from $500,000 - $20,000,000+.
- Website
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https://www.fbfloans.com/
External link for Fidelity Bancorp Funding
- Industry
- Financial Services
- Company size
- 11-50 employees
- Headquarters
- Costa Mesa, California
- Type
- Privately Held
- Specialties
- Investment SFR, Condo, 2-4 Units, Multifamily, Commercial Loans, Owner User Loans, Bridge Loans for all asset types, SBA 7(a)/504 programs, No income verification & no tax return programs, Retail, Industrial & Office Commercial Loans, Residential Lending, and BridgeLending
Locations
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Primary
Get directions
3200 Bristol St
Suite 120
Costa Mesa, California 92626, US
Employees at Fidelity Bancorp Funding
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Rick Cotton
Founder | CEO | Advisor | Investor
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NAVIN DIDDI
Commercial Real Estate Finance, Purchase, Refinance, Multifamily, Retail, Office, Conventional loans, Bridge/Mezzanine
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Earl McCoubrey
Commercial Real Estate Finance - Southern California
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Gregg Klingaman
Commercial Loan Officer at Fidelity Bancorp Funding, Inc.
Updates
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Explore the latest in real estate financing with our holiday edition of the Insights Newsletter. From the power of DSCR loans to California’s historic housing market trends, and a spotlight on our flagship Small Balance Bridge Loan, discover the tools and strategies shaping today’s market. Click below to sign up and read the full stories:
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Great insights from Dillon Freeman, CFA on the challenges of navigating today’s market dynamics. The gap between financing rates and cap rates continues to create hurdles for buyers and sellers alike. Understanding concepts like negative leverage is crucial for making informed decisions in this environment. Read more below.
"Dillon, I have been running numbers on deals and they just don't work. I have to put 40% down with bank financing and that doesn't get me even close to the return I need. I have been making offers where I need them to be in order for my return numbers to work, but buyer's aren't budging. There seems to be a big gap between what I can pay and what sellers will accept." This has been a common theme across markets ~2 years now, but why? Well, for one, financing rates are higher than cap rates in many markets, meaning "negative leverage". What's that actually mean? It means that, if you're buying at, say, a 5% cap rate and 6.5% interest rates, your cash flow yield on year 1 is lower than the cap rate of 5%, say <2%. If you are a rational economic party, the only reason you would accept this return is for the prospect of a future return of more than this from rising NOI or falling financing costs. The problem? Rates have been sticky, rents have been generally flat, vacancies up, and expenses rising. Too much risk in buying a stabilized deal and not enough return for that risk. Owners still holding onto long-term debt below market rates have no reason themselves to sell only to buy into negative leverage. As long as we don't see forced sales, this will continue to hold. No telling if or when that will happen, or if interest rate/cap rate dynamic will return to the "norms" of the last ~30 years.
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Proud to share the successful closing of a $1.4 million cash-out refinance DSCR loan for a 4-unit apartment property in San Diego, CA. Our repeat client leveraged the financing to pull cash out of a stabilized value-add property. Kudos to our Senior Loan Officer, Dillon Freeman, CFA, for facilitating the quick close. #MultifamilyFinance #Refinance #CRE For more funding success stories, visit https://lnkd.in/eRidtQ8U
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The private lending landscape is rapidly growing and transforming with securitized bridge loans poised to revolutionize the market. Bridge loan securitization volume has expanded from $1B in 2018 to $4.5B through July 2024. As securitization takes hold, bridge loan dynamics will shift and understanding these changes is critical for borrowers and lenders alike. Scotsman’s recent article adds context with a quick view of the benefits: - Enhanced capital availability - Streamlined underwriting - More competitive pricing - Broader institutional participation California multifamily investors stand to gain considerably from these market shifts, particularly when executing value-add strategies and time-sensitive acquisitions. Reach out to the Fidelity Bancorp Funding team to discuss and learn more! #CommercialRealEstate #MultifamilyFinance #BridgeLoans #InstitutionalLending
How securitizing bridge loans will change private lending - Scotsman Guide
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In multifamily lending, “𝐚𝐬-𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞” and “𝐚𝐬-𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐳𝐞𝐝” values are not the same — and understanding this difference is crucial. Fidelity Senior Commercial Loan Officer Dillon Freeman, CFA breaks it down: - 𝐀𝐬-𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞: Value of a newly built, vacant property (higher risk, lease-up uncertainty). - 𝐀𝐬-𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐳𝐞𝐝: Value after achieving full occupancy (lower risk, predictable cash flow). This impacts both 𝐥𝐨𝐚𝐧 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬 and 𝐥𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐥𝐞𝐯𝐞𝐥𝐬. Need bridge financing that aligns with stabilization timelines? Our underwriting reflects this reality as we recognize that a vacant, newly completed property carries different risk than a stabilized asset - from carrying costs to lease-up uncertainty. This directly impacts both value and appropriate leverage levels. If you're seeking bridge financing, our team offers market-appropriate loan structures that account for true stabilization timelines. Reach out to get started! #CommercialRealEstate #MultifamilyFinance #BridgeLoans #InstitutionalLending
Saturday School: "As Complete" vs "As Stabilized" Values I see this all the time; sponsor has a model for their multifamily rehab or construction project. Property is currently near complete, but completely vacant. Sponsor's model shows a stabilized NOI 2 years from now, following lease-up and expense stabilization. Sponsor throws a cap rate on that projected NOI, calls that the current property value, and asks for aggressive leverage against that value. The problem is, the value when the project is complete is not the same as the value when the project is fully stabilized. Think about it this way, would you pay the same for an abandoned business as you would for one that is fully operational? That's what the sponsor is asking here in that example. The differences in "as-complete" vs "as-stabilized" take into account the following factors: - The expense of carrying a property not operating at full capacity - The risks of lease velocity or not achieving forecasted rents - The time value of money If you ignore these nuances, you can get burned. I finance investment real estate. Link on profile to get in touch.
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Our Senior Loan Officer, Dillon Freeman, CFA, breaks down the latest Fed household debt report: ✅ The Good: Credit card delinquency rates improved slightly with bankruptcy and foreclosures declining in Q3. ⚠️ The Bad: Mortgage delinquency transitions are worsening with more mortgage accounts trending toward 30-60 days delinquent. 🚨 The Ugly: Credit card and auto loan delinquencies reached levels unseen since 2011. These indicators suggest potential shifts in multifamily fundamentals. Contact us to discuss strategies to navigate the current lending environment and click the link for a deep dive on the household debt report. #CommercialRealEstate #Multifamily #CaliforniaRE
Federal Reserve Bank of New York's "Quarterly Report on Household Debt and Credit" was released last week. It's a story of the good, the bad, and the ugly. Let's start with the good: - "Credit card delinquency transition rates improved, with 8.8 percent of balances transitioning to delinquency at an annual rate compared to 9.1 percent in the previous quarter." - About 126,000 consumers had a bankruptcy notation added to their credit reports and 42,000 had a foreclosure notation added in 2024Q3, both small decline from the previous quarter. The bad: - Mortgage delinquency transitions are trending the wrong direction - toward more delinquent rather than current - Same can be said for current mortgage accounts, the trend toward 30-60 days delinquent continues to march higher The ugly: - Credit card loans continued their upward delinquency march. Despite rolling annual delinquencies falling, actual delinquencies continued to rise to levels not seen since 2011. - Auto loans also continued their negative delinquency trend, with nearly 5% of auto loan balances 90+ days delinquent per the report.
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At Fidelity Bancorp Funding, we pride ourselves on providing tailored, competitive financing solutions to help our clients achieve their goals. Here are some recent success stories: $3M Bridge Loan: Closed in under 7 days for an industrial property in Phoenix, AZ, supporting a quick and strategic acquisition. $1.3M DSCR Loan: Delivered a cash-out refinance for a San Diego multifamily property with a rate below 6%. $5.4M Multifamily Loan: Facilitated financing for a 32-unit property in Downey, CA, ensuring a long-term investment solution. $1.3M Commercial Refinance: Enabled a portfolio expansion with cash-out proceeds for a property in Perris, CA. Thank you to our clients for trusting us to deliver timely, tailored financing solutions. Learn more here: https://lnkd.in/eEB59-cj #CRE #RealEstateInvesting #BridgeLoans
Fidelity Showcase Fundings December 2024 — Fidelity Bancorp Funding
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