As the real estate boom continues to surge in Southern Maine, GenX Lending continues to be the “go to” bridge lender for real estate developers looking for quick capital for opportune deals that have short timelines.
“It’s crazy right now,” said Mark McClure, managing director of GenX Capital Partners, which is the parent company of GenX Lending. At the beginning of the year, GenX Lending set a goal to close on a minimum of $25 million in bridge loans and equity for Southern Maine through their hard money lending platform. By the end of June, they were at 60% of that with no sign of slowing down.
“We are financing from Cape Elizabeth to Wiscasset and everywhere in between,” said McClure. “Bank rates are great, no doubt, but almost all of our clientele need speed, limited paperwork, a fast approval process, generous loan to value ratios and they need the certainty of closing. With conventional lending institutions, that is going to take precious time that most real estate investors don’t have. So they come to us. We fill that need and we close quick. Sometimes in under a week.”
“GenX Lending and Mark in particular have been beasts,” said a representative of the development firm Moxie Cove Partners. “Their access to capital and the speed at which they move is unreal. We just closed on a $1.62 million loan with them last week. From start to finish, it took only two weeks. No appraisal needed and they even bumped the LTV 5% to help us maximize proceeds at closing. They have reinvented bridge lending in Maine with no shortage of capital and it’s refreshing.”
Because of GenX Lending’s success participating in other developers’ deals, their parent company, GenX Capital Partners, has now decided that they want to get in on the home building surge as well. They are currently developing single family homes and subdivisions in the Greater Portland market. Three significant condo and multifamily developments are nearing or have already received approval.
“Lending and injecting equity into other developers’ projects has been great from a rate of return perspective, no question,” said McClure. “But we have also been getting inquiries to acquire shovel-ready projects. With the heavy lifting all done from a soft cost perspective, with the entitlement and approval risks all but eliminated and the market being what it is, merging the lending and development component seemed like a good marriage. Two solid funnels to continue to get capital out on the street and hopefully generating outsized returns for ourselves and investors.”
McClure praised his development team, experienced professionals Ronnie Goddard and Paula Wallem, who have been the catalyst in allowing the development phase to move so quickly and efficiently, expertly overseeing the budgets, crews and infrastructure of more than 15 homes coming out of the ground in three different towns at once.
“Ronnie and Paula have been great,” said McClure. “The speed at which they launched our development arm, RPM Development, has been nothing short of amazing. Assembling quality crews in this tight labor market, acquiring excavators and a foundation company to accelerate our expansion, and expertly navigating the complexities of approvals and ordinances to get us where we are today. Sales are brisk and we hope to have several larger projects, over 150 units, coming out of the ground end of November and first of 2022.”
If you are a real estate developer or flipper looking for quick capital—$250,000 to $10 million—to jump on a time sensitive opportunity, visit GenX-Lending.com to fill out a simple online form. For deals $10 million and up visit GenXCP.com or call 305-507-6777.
If you are a broker or developer with “shovel ready” project you want to sell or if you are looking for a potential JV partner, email info@GenX-Lending.com with a summary of the deal and any other pertinent information you have.
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