We believe there is significant opportunity to make healthy returns, via lending and otherwise providing liquidity to good borrowers who are in difficult situations
Jacksonville, FL (PRWEB) July 17, 2008
Advantage Capital Equity Solutions, Inc. announced it has a unique residential and small balance commercial loan origination and portfolio platform and seeks to invest up to $100M in the real estate market throughout 2008. Their strategy is contrary to that of most lenders in today's volatile housing and real estate lending markets as it entails being a lifeline to distressed real estate investors and property owners in need of either 1) time to liquidate a property or 2) a recapitalization of funds. Their goal is to fund up to $100 Million to borrowers in the beleaguered real estate market throughout 2008.
Due to the Credit Crunch, liquidity is nearly nonexistent. "We believe there is significant opportunity to make healthy returns, via lending and otherwise providing liquidity to good borrowers who are in difficult situations," says Randy S. Miller, CFO. Prudent underwriting and minimum borrower equity requirements are the dominating factors leading to AdCap's success in today's real estate market. Their philosophy and strict adherence to the borrower maintaining a considerable equity position in the collateral drastically reduces AdCap's risk of capital loss.
A complement of AdCap's lending strategy is the REO/Loan acquisitions strategy. This is accomplished via the direct acquisition of performing and non performing loans and/or REO assets at a significant discount relative to the collateral value.
To execute their strategy, AdCap had to create an efficient origination platform, develop selective underwriting procedures, and create two asset based lending (ABL) investment vehicles, a private equity fund and a hedge fund, capable of holding the loans in its portfolio through maturity. Combined, these funds shall be able to invest nearly $50 Million per month in the real estate and housing market and greatly improve liquidity for today's real estate investors.
"As the housing downturn continues, more opportunity is created for AdCap to execute its unique real estate investment strategy," says CEO Lane T. Bacon. "As such, we are positioned for aggressive growth and recently purchased a more robust loan servicing system in preparation of this growth."
Advantage Capital Equity Solutions, is an asset based hard money lender and private investment fund manager.