What Is Private Lending?
Privately funded real estate is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of the real estate. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk taken by the lender. Most privately funded real estate loans are used for projects lasting from a few months to a few years. Privately funded real estate is a unique financial option for those looking to diversify their portfolio. Unlike stock and bond portfolios, where there is no real tangible security for your principal, all privately funded real estate loans are secured by a mortgage security interest on commercial and non-owner occupied real estate. In the unfortunate event of default by a borrower, foreclosure on the collateral, collection of tenant rents, and/or resale of the property are available options.Private lending refers to lending money to a company by a private source. While banks are traditional sources of financing for real estate, and other purposes, privately funded real estate
Start Rating
The key factors evaluated in the Ratings process following a completed document submission are:
FAQs
What are PIRS ratings?
We are an independent third party agency that will create a standardized ratings service to help facilitate a safe and trusted privately funded real estate marketplace that empowers and strengthens investor confidence advancing the industry toward investment grade.
Which private lender deal segments can receive PIRS ratings?
PIRS Ratings can be assigned to residential and commercial real estate projects.
What is the criterion for PIRS ratings?
PIRS Ratings are determined on the basis of project-specific parameters such as the sponsors, construction quality, legal documentation, financial planning and innovation.
What is the rating process and how much time does it take?
PIRS ratings process is designed to ensure that all ratings are based on the highest standards of independence and analytical rigor.
What is the requisite information for obtaining the rating?
a. Investor or Developer-specific information, including track record, copy of audited accounts and rehab record for the past three years
b. Project-specific information relating to approvals, timeliness and quality
How frequently will PIRS monitor the project?
PIRS will regularly monitor the key project milestones relating to statutory approvals.
Can PIRS change the rating after the initial rating is assigned?
The Ratings can be downgraded or upgraded at any time, as in the case of other ratings assigned by PIRS.
How will deal sponsors or brokers benefit from PIRS ratings?
a. Certification from PIRS LLC, an independent, external institution, enhances the credibility of the project
b. A track record of PIRS Ratings will help establish deal sponsors or brokers over the new entrant into the private lending business
c. Enhanced credibility with Private Lenders and Financial Institutions
d. Enhanced credibility with new private lenders to investing
e. It helps build credibility of your business and gain confidence of business partners
What are the final rating deliverables?
PIRS will provide a rating certificate and/or credit opinon.
Board
Malik Sabree
Chairman
Malik is the Founder of The Mores Group, LLC, which is a debt buying/private lending company established in 2009. As Managing Member at Mores, Malik exerts his experience by overseeing joint-venture pursuits, external funding relations, strategic plan guidance and management development. The Mores Group specializes in funding for real estate investment professionals requiring immediate non-commercial bank capital to purchase distressed non owner-occupied properties for rehab and quick resale. In 2006 he ventured into the burgeoning mobile gaming sector. This was a recent outgrowth of the entertainment software industry at the time. His company, The Viewtainment Corporation, explored this new genre in technology. They created and developed casual games for cellphone users long before the advent of the smartphone and android. He utilizes his abilities as a strategist and problem solver by finding solutions to complex issues within different deal structures. A post graduate of University of Iowa College of Law and Henry B. Trippie College of Business, Mr. Sabree received his Juris Doctor and Master of Business Administration, in 1999. He received a Bachelor of General Studies from Virginia Commonwealth University in 1992.
Stephen R. Pack
Interm CEO
During his twenty year Wall Street career (Merrill Lynch (1988-2003) and Banc of America Securities (2003-2008)), Mr. Pack led and structured over $8 billion in healthcare transactions and he has worked on all types of tax-exempt and taxable healthcare financings ranging from high-yield private placement and limited public offerings to letter of credit variable rate financings and synthetic fixed rate transactions. Mr. Pack’s primary focus since 1988 has been hospital financings insured by the U.S. Department of Housing and Urban Development. He has also pioneered many financing innovations in the hospital investment banking industry including structuring the first embedded derivative for an FHA insured hospital loan (Medical University of South Carolina, 2004). Mr. Pack formed Armadale Capital in January, 2008 to focus on hospital investment/mortgage banking and financial advisory services nationally, and the firm is a licensed FHA multifamily mortgage lender and registered financial advisor with the SEC. Since 2008, Armadale Capital has led and structured over $2 billion in hospital financings including a $750 million FHA loan for Capital Health System (Trenton, NJ). In 2013 Armadale Capital was ranked the 632nd fastest growing company in the U.S. by Inc. magazine, and was also ranked #52 in healthcare, #36 in New York and #51 in the New York Metro Area.Mr. Pack has extensive experience in the private lending industry, closing over thirty transactions over the past two years in the following states: California, New York, New Jersey, Florida, New Mexico, Texas, Georgia, Pennsylvania and Arizona. He is a graduate of Princeton University and is currently enrolled in the Owner/President Management Program at Harvard Business School, Class of 2016.