The loans are currently charged at 11% – 14% interest rate. Small/New Construction Projects single and multi-units.The loan-to-value is a conservative 75% and 80% for construction costs.
The company apparently has as rigorous due diligence as the big banks but the approval of the loan is much much quicker at 3 to 10 business days. Manhattan Bridge Capital lends typically in the range of $300,000 – $600,000 for 12 months (often with extensions) to real estate investors developing residential or commercial buildings in the New York metropolitan area.Įvery loan is secured with a first lien on the building and a personal guarantee from the borrower, which may or may not include the borrower’s equity interest in the real estate project. When the Jewish yellowpages business wasn’t performing as well as it used to, Ran started lending to businesses, and when he saw that this was a more profitable business, Ran pivoted the company completely to lending in the niche of short-term lending to real estate investors in metropolitan New York. And so the story really begins in 2008, ironically, a great year to really launch a lending business.ĭespite many challenges MBC went through over the years, I appreciate that Ran is a scrappy entrepreneur who wouldn’t let his business fall by the wayside. In 2008, the company reported that its lending operation was the most profitable, so Ran changed the name from DAG Media to Manhattan Bridge Capital and listed on NASDAQ under the symbol LOAN. In 2007, the company started a lending operation, allocating $5 million lending to businesses. Ran started a Jewish yellow pages publication company known as DAG Media. The company was founded by Assaf Ran in his basement in Queens in 1989. So, is Manhattan Bridge Capital stock worth it? First, The Business There aren’t layers of complex operations but rather, what you see is what you get which is good because there are only few factors that could go wrong to drive the business into the ground, but on the same token, there isn’t blue sky upside. short-term lending to real estate development investors with real estate as collateral) in the New York metropolitan area. The business is lean and very simple – a hard money lender (i.e. It’s a small group, really a one-man band. But it passed my initial sniff test, so I decided to look past the unprofessional looking website.įrom learning more about the company, the aesthetics match my analysis of the company. I have to say that at first glance of their website, I was completely put off. The first company I am adding to the official portfolio is Manhattan Bridge Capital (NASDAQ:LOAN).
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