ENGLEWOOD CLIFFS, N.J., Sept. 22, 2021 /PRNewswire/ -- There are roughly 5,771 commercial lenders in the US. If you ask one of them if they would – or could – close a land loan in the hills of Tarapoto, Peru, the answer would be a resounding "no."
That is why a Coral Springs, Florida, broker sought out Kennedy Funding, an Englewood Cliffs, N.J.-based direct private lender.
Kennedy Funding has earned a worldwide reputation for closing loans when others cannot. Loans on land have become one of their successful in-demand loan products. They have successfully closed over $3 billion in loans, much of it on land, all over the world: Belize, Brazil, Colombia, Dominican Republic, Jamaica, St. Barts, and many countries and continents, including loans throughout the US and Canada.
"I met with Kennedy's management team a long time ago and knew that there were special circumstances that would require their services," said Alex Stiglich, South Pacific Funds and Commerce Limited, who represented the borrower.
"Commercial banks and other conventional lenders just ask for too many things, and particularly if time is of the essence, there's no chance to close," he said. "Kennedy is more flexible in so many ways. They focus exclusively on the collateral. That's how they get the deal done. I trust them 100% with their ability to close."
On September 10, Kennedy Funding closed on a $2.5 million land loan to Allan Construcciones S.A.C. to fund the construction of their residential project. The loan will be used initially for working capital.
The loan was secured by two pieces of land — 26,326.89 square meters of land located at Jr. Jose Galvez C-08 Tarapoto, Peru, and 145,109 square meters of land located at Parcel 0639141 Oxapampa, Pasco, Peru. The site is currently raw land.
Kevin Wolfer, CEO of Kennedy Funding, said there are huge challenges in closing a loan outside the US.
"It takes an experienced lender like Kennedy Funding to do business in Peru," Wolfer said. "You have to navigate through the maze of local laws and mounds of paperwork pertaining to real estate, land use, title and environmental. Securing an accurate property appraisal in an unknown country is vital, particularly when it's raw land – that is why Kennedy uses world-renowned firms like CBRE. We can count on them so we can offer the highest loan amount possible to our borrowers."
"Allan Construcciones was able to provide us with two prime parcels in different parts of the country," he said. "They are located in areas that were attractive to us as lenders, and each has a rich history."
Tarapoto is a commercial hub town located in the San Martin Province in northern Peru; although Moyobamba is the capital of the region, Tarapoto is the region's largest city. It is located approximately 356 meters above sea level on the high jungle plateau, also called the cloud forest. It was founded in 1782 by Baltazar Martinez Jimenez de Compagnon. According to the 2017 census, it has a total population of 310,073, including the Morales and Banda de Shilcayo districts. The region's main activities are tourism, commerce, and agriculture.
"We are proud to have been able to close this loan in Peru," adds Wolfer. "We have a large pipeline of loan requests from all over South America. Other lenders can't close these types of loans. We can. We look forward to filling that void in the marketplace."
About Kennedy Funding
Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. Kennedy Funding has closed more than $3 billion in loans to date. Their creative financing expertise provides funding up to 75% loan-to-value, from $1 million ($3 million international) to more than $50 million in as little as five days. The company has closed loans throughout the United States, the Caribbean, Europe, Canada, and Central and South America.