Miami Condo Buyers Won’t Need Cash To Close On Their New Units

Condo buyers from overseas now have an easy option to obtain a loan covering the 50 percent deposit required to close on their condos.

Vaster Capital is offering bridge loans up to 36 months, with interest rates around 8%. The company was created by Fortune International and Lennar’s Rialto Capital, and is also partnered with Related Group.

The company hopes to capitalize on the condo projects in Miami set to be completed in the next few years, by issuing $100 million worth of loans per year. Loan to value ratios will be 50 to 60 percent, with a minimum loan of $250,000.

Fortune’s Edgardo Defortuna told the SFBJ that he has yet to see a buyer walk away from a 50 percent deposit.

 

Fortune International Group and Rialto Announce the Launch of Vaster Capital
Vaster Capital will take an institutional approach toward providing bridge loan products and financing to domestic real estate investors and foreign nationals
MIAMI, FLORIDA JUNE 16, 2017
Miami, Fla.-based real estate development company, Fortune International Group (Fortune), and Miami, Fla.-based real estate investment and asset management firm, Rialto Capital Management (Rialto), have joined forces to launch Vaster Capital – a private bridge lender specializing in residential and commercial real estate.
The goal of the company will be to fill a void in the marketplace for South Florida real estate investors seeking bridge loan products, including foreign nationals.
As a recognized leader in development, sales and marketing for more than three decades, Fortune International Group has one of the industry’s most prestigious development portfolios — including a myriad of South Florida’s most prominent projects, such as Jade Signature, The Ritz-Carlton Residences, Sunny Isles Beach, and Auberge Beach Residences and Spa Fort Lauderdale. In addition, Fortune is the exclusive sales and marketing representative for twenty-two projects totaling more than $6.7B in the company’s portfolio.
Rialto, which invests and manages assets throughout the capital structure in real estate properties, loans and securities, boasts a deep-rooted background in institutional lending and financial services. Given those core strengths, coupled with Fortune’s real estate development and sales experience, Vaster Capital will offer a sophisticated synergy of services, aptly and efficiently providing loans for South Florida real estate assets.
“Our goal has been to satisfy a long-standing gap within our marketplace…providing professional and customized bridge lending products while better servicing the Miami real estate investor,” said Edgardo Defortuna, President and CEO of Fortune International Group. “This is a need I have always sought to address, appreciating that numerous buyers – both in the U.S. and beyond – are interested in buying and selling real estate offerings in Miami, but do not have access to customized loan offerings that meet their specific needs.”
Vaster has the ability to close loans much faster when compared to other lenders due to less bureaucracy and the use of technology. The firm plans to lend a substantial amount of capital in South Florida, with a goal to expand geographically in the near future.
“Given both Rialto and Fortune’s knowledge of the real estate industry, along with Rialto’s extensive experience in real estate lending, Vaster Capital is structured to become an important lender in South Florida as well as other key markets, allowing borrowers to accomplish their financing needs through a seamless and efficient process,” said Eric Feder, Vice Chairman of Rialto Capital Management.
In addition, Vaster formed a joint-venture, Vaster Capital II, with the Related Group to provide financing for buyers purchasing at Related’s portfolio of projects including those currently represented by Fortune International Group, such as: Paraiso Bay, Brickell Heights, Hyde Midtown, and SLS Lux. Fortune International Group and Related Group are also partners in Auberge Beach Residences & Spa, as well as the recently completed Hyde Resort & Residences in Hollywood Beach.

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Anonymous

Entering the terminal phase!

Anonymous

That’s 90% mortgages, not 50%. Let me know when you see one.

Marc306

Yeah yeah, help them stash their money off shore and offer nothing to the real people who actually live and work in this damn city.

Anonymous

ita not the developers responsibility. Wouldn’t you want to maximize your returns?

Pioneer

What do you want? A free condo?

Anonymous

Or maybe they can concentrate on projects that actually meet the real demand that exists in Miami? Oh wait, I forgot they can’t make a killing selling those type of building way above costs…better keep trying to come up with silly gimmicks to sell “luxury” then!

Anonymous

Demand? Of course it meets demand, look at how many people purchased there. The increase in supply is normal part of the cycle.

Anonymous

How freaking desperate !!

Gene

Usury is well and living in Miami!

Anonymous

For this having trouble bringing their dirty money…

Anonymous

I don’t think that’s the strategy. They (the lender) more than linkely can easily foreclose on the property if needed, so they will require the properties and then resell them when the market improves. Once again, the preconstruction buyers take the risk and finance the projects.

Anonymous

It’s hard for dirty borrowers to get loans. Their names show up on all types of lists.

Anonymous

Not if it’s seller financed. As long as the lender doesn’t intend to sell it on the secondary market. Think about it, the lender (Developer) finances their closing. The owner defaults and the developer/lender just had his project financed by the buyer and gets the condo back at 50% and can resell it at full price…..genius….