If we learned anything from the classic baseball movie Field of Dreams, it is that “if you build it, they will come.” But if you do not have it, or in the case of real estate – access to capital – the building part can be impossible.
Enter Old North Capital Fund, a North Carolina-based company with a mission to provide loan products that empower investors with agility, openness, and relationship building. Originate Report had the opportunity to speak with Brandon Stein, President of Old North’s parent company, The Loan Store. Stein offered insight into how Old North navigates a complicated lending marketplace and offers value for its borrowers.
“The whole field is starting to experience the other side of the red-hot market we saw throughout the pandemic, and with rising rates and margin compression amongst lenders, we were looking for an outlet with a unique product offering, not only for real estate investors but also for our broker partners as well,” Stein stated. “Old North Capital Fund was a timely opportunity for us. We have made these products available to our more than 600 wholesale brokers at The Loan Store and our local real estate investors in North Carolina and Tennessee.”
“Old North Capital specializes in asset-based loans on non-owner-occupied residential properties for investors who need quick and reliable funding,” Stein explained. The Fund currently offers four different loan programs: fix & flip, bridge, construction, and transactional loans.
Generally, Old North will lend up to 70% of the ARV (after-repair value) of the property or will lend up to 90% of the purchase price plus 100 percent of the rehab. This, Stein said, is a safeguard for the Fund’s portfolio because it ensures both the borrower and lender’s interests align in seeing a project to fruition. “We work with an experienced group of borrowers and mortgage brokers across our operational states, and at the end of the day, it is rewarding to see business-purpose loans originated to our customers who previously did not have access to this sort of product through The Loan Store.”
To Stein, who has over ten years of experience in lending, loan production, counterparty management, and partnership growth, the value of partnering with Old North is clear: rather than hinder the process by adding steps and limiting availability, the Fund focuses on closing deals as fast as reasonably necessary.
It is no secret that the market is currently undergoing a period of stabilization, but rather than focus on the negative aspects of a less-than-predictable environment, Stein noted that Old North takes these challenges and turns them into opportunities.
“As inflation is taking its toll on the economy and we are seeing historically low inventory, builders are working to keep up with demand and the cost of raw materials. We see borrowers who need access to capital but do not have the opportunity. What I am proud of at the Fund is our ability to source and match qualified borrowers with access to capital.” Stein commented.
In addition to ensuring consistent access to funding, Stein added that the synergy between Old North and The Loan Store results in lasting value for borrowers. “The synergy is astounding,” he vocalized. “Ultimately, it generates a more robust product offering for our broker partners and investors. The Loan Store can now offer industry-staple products like conforming loans and non-traditional lending options such as fix and flip and construction loans. We have continued to focus on expanding our credit box to also offer loans such as a 2-1 Buydown and Debt Service Credit Ratio for investment properties.”
Looking forward to the future of the lending sphere, Stein mentioned this ‘dual arm’ approach will behoove The Loan Store and Old North.
“The beauty of having these two different companies and two different options is that we can evolve quickly on one arm or the other,” he responded. “We currently lend with The Loan Store in 26 states, but Old North is a more boutique, local lender in North Carolina and Tennessee as of now. Our goal for Old North is to focus on growing geographies where we can provide financing in historically underserved areas throughout the country.” While some lenders take up to 30 days to close a loan, Stein emphasized how Old North Capital prides itself on underwriting in 24 to 48 hours and coming to a quick credit decision in addition to never charging junk fees, running credit checks, or requiring bank statements from borrowers. To learn more about Old North Capital, or to get started on a loan application today, visit oncfund.com.