CEO Marcia Kaufman spearheads real estate funding strategy
GREAT NECK, N.Y. — One of the Northeast’s premier real estate lending experts is bullish on New Jersey’s multifamily market.
Marcia Kaufman, CEO of Great Neck, NY-based Bayport Funding, specializes in securing bridge financing for real estate investors seeking fix and flip, ground-up construction and 1 – 4 unit multifamily opportunities. With more than 30 years of experience in the mortgage banking and real estate industries, Kaufman and Bayport Funding are known for their proactive approach to overcoming market challenges and capitalizing on opportunities in the real estate investment market. Even while other lenders are shying away in a crowded market, Kaufman sees Bayport’s expedited funding strategy as the key to growth in the Garden State.
“Our ability to close loans swiftly, often within 72 hours, is not just a testament to our operational efficiency but also to our deep commitment to the real estate developers we serve. This speed, combined with our hands-on approach, ensures that projects move forward without delay, reflecting our overall agility and responsiveness in the face of evolving market dynamics,” Kaufman concluded.
The housing supply is low in New Jersey and in other desirable areas around the U.S. due to the number of buyers who secured ultra-low interest rates during the COVID-19 pandemic. Even in light of that reality, real estate developers still have lucrative opportunities — if they know where to look.
“Throughout New Jersey, we’re seeing experienced fix-and-flippers rejuvenating neighborhoods by renovating aging housing stock and reselling it, often to an end user,” said Marcia Kaufman. “These investors are not just revitalizing properties; they are also significantly increasing housing availability, whether by transforming a single-family home or converting a two-unit house into four or eight units. With Bayport’s strategic funding solutions, these multifamily investors can play a crucial role in addressing New Jersey’s urgent need for more housing.”
Bayport Funding’s experience in fix-and-flip and multifamily home lending shows in their success rates. The balance sheet lender is profoundly productive, with more than $30 million in loans closed monthly; their assets under management exceed $350 million. To date, the firm has originated nearly $2 billion in loans. That’s a lot of hands-on experience — and an immense track record — that investors in New Jersey can benefit from, even though interest rates are high.
“Experienced borrowers choose Bayport because they recognize the critical importance of time and tailored funding solutions,” Kaufman explained. “Our offerings in bridge and short-term debt financing are strategically crafted for those who mean business, not for consumer use.”
Kaufman added that multiple New Jersey municipalities offer incentives to developers to build multifamily housing. In combination with a bridge loan from a lender like Bayport Funding, developers can move to construction much faster, resulting in better profitability for investors.
“Those incentives are terrific and have been a big plus for developers,” Kaufman said.
Kaufman explained that a significant number of investors are turning away from New York and focusing their efforts on the Garden State, since New York’s supply is even more stringent and more expensive than New Jersey’s. Even with these moves, Kaufman notices many similarities between New York and New Jersey’s multifamily markets.
“New Jersey, especially the northern region, shares many lending characteristics with New York,” Kaufman stated. “Supporting our developers as they expand into this area has been a strategic and seamless progression.”
Kaufman called attention to Jersey City as a prime example of the multifamily fix-and-flip scenarios long seen in New York.
“Fix-and-flippers are coming to New Jersey because there’s a lot of opportunity here from a supply perspective, where New York is much tighter in supply,” Kaufman said. “Many of our New York clients have pivoted to places like Jersey City, where they’re building bigger multifamily projects… they’ll find one or two one-family or two-family homes next to each other, and then they’ll demolish them and build a multifamily property on that plot of land. We see this trend all over New Jersey and New York.”
Notably, as a balance sheet lender, Bayport Funding does not sell off loans to others, nor are they tied to third parties for approval. Their total control of funding quickly speeds up the time to closing, which is crucial for real estate developers who need quick turnaround on projects.
“Having complete control over our funds makes all the difference,” Kaufman emphasized. “This autonomy allows us to close loans on one- to four-family properties within a mere 72 hours.”
Despite challenges like low supply and high interest rates, Kaufman again remains bullish about the resilience and future growth of New Jersey’s real estate market.
“Our commitment to New Jersey is unwavering; we’re not fleeing to other states when faced with challenges,” Kaufman declared. “We stand firm, supporting our borrowers right here in New Jersey, stronger and more determined than ever.”
