FEATURE ARTICLE, JULY 2005

LIGHTNING-FAST LOANS
Kennedy Funding prides itself on its ability to loan where traditional lenders can’t — and on its ability to close loans more quickly than anyone else.
Lara Fuller

When it comes to lending, there are many factors that can delay a closing, or even cause it to fall through. Loan terms, property location, amount of collateral, loan size, and timing — the list of potential pitfalls is endless. However, Kennedy Funding is thriving by closing some of the most difficult loans out there. Even with seemingly impossible loan scenarios, Kennedy Funding can more than likely find a way to make a loan work. The company’s specialty is in closing loans with special or unusual criteria — and the company usually can close quicker than a traditional lender could close a loan under perfect circumstances. “We are more experienced than a bank, cheaper than a partner, and we can usually close quicker than anyone else,” says Jeffrey Wolfer, president and co-CEO of Hackensack, New Jersey-based Kennedy Funding.

Kennedy Funding was first created in response to the lack of flexibility and speed in the lending market. “We began our company in 1986,” says Wolfer. “At first we were a broker, then, in 1989, we began making our own loans. Now our family business has turned into a worldwide company that can make a $3 million or $300 million loan.”

From the beginning, there have been two main areas in which Kennedy Funding has strived to distinguish itself: flexibility and speed. The company’s flexibility is apparent in the areas it covers and in the way it handles loans. In addition to the United States, Kennedy lends all over the world — from Spain to Fiji to Belize. The company recently closed a $10 million dollar deal in New York, a $18.5 million deal in Nevada and a $5 million transaction in Mexico. Kennedy Funding covers virtually every corner of the globe, and this flexibility allows the company to meet the needs of clients that have both U.S. and international properties. “We recently handled a transaction for a group of Russian clients in Crystal Springs, Florida,” says Wolfer. “They purchased 250 lots and we closed the loan in 5 business days. They were able to turn around and market the lots on a Web site and sold them for a premium — at almost 40 percent.” In Mexico, Kennedy Funding recently completed a $4 million loan for expanding a gaming establishment in Mexico City. The company’s ability to loan nationally or internationally holds great appeal for many potential clients.

Kennedy also approaches the lending process in a different manner. Creativity is what makes the company’s deals work. Kennedy can close almost any deal because it offers flexibility in loan configuration, specialized attention and quick turnaround for almost any type of property. “We are an asset-based lender,” says Wolfer. “We base loans primarily on an asset itself. It depends on the deal, where it is. We’ll do any [commercial] property type and, most importantly, we’ll do it quickly,” says Wolfer. The company relies heavily on its experienced loan officers and risk analysis experts to do the needed research to make loans in the shortest time possible. By taking the time to do due diligence and in-depth analysis of the market, Kennedy avoids delays and closes successful deals. 

It terms of speed, Kennedy Funding is hard to beat. “We can do deals in less than a week,” says Wolfer. “If you want to close quickly, come to us.” An example of the company’s ability to deliver in record time is apparent in a bridge loan transaction with a South Florida developer. Point South needed a bridge loan to complete the construction of an 11-unit beachfront condo complex in Bradenton, Florida. Kennedy Funding was able to provide Point South with a $3 million loan commitment in less than 48 hours. In addition, Kennedy took a second mortgage on the property as collateral, an unusual approach that most traditional lenders wouldn’t do.

In Point Pleasant, New Jersey, Kennedy Funding acted quickly — in less than 5 days — to provide the Lancaster Group with the $3.5 million it needed to purchase the former Point Pleasant Hospital at an auction. Because of Kennedy’s ability to work quickly to loan the money before the scheduled auction, the Lancaster Group was able to acquire the property and then convert it into 123 luxury condominium units.

While some of the loans Kennedy has encountered have been run-of-the-mill, others have been one-of-a-kind. Other lenders would most likely turn down a difficult or seemingly impossible loan, but Kennedy has built an impressive portfolio on the more unusual loans out there. One example is the company’s recent transaction with The Blue Ridge Group of North Carolina. The Blue Ridge Group needed a loan for the construction of undeveloped land in northwestern North Carolina. However, the company was turned down for a loan by 44 different lending companies, and Kennedy Funding was the one company that recognized the potential of the project. Kennedy was able to provide a $980,000 loan to The Blue Ridge Group, which was then able to complete model home construction, paving, septic tank installation and drilling for water wells with the money.

Kennedy Funding, using its innovative strategies and hands-on style, plans to continue to make some of the fastest loans out there, despite what the market may or may not do. “The real estate market is staying up right now,” says Wolfer. “People are still buying buildings. The real estate market might be in trouble in the future, but not yet.” And as long as there are buildings to be bought, Kennedy will be there. “We want to be the Number 1 name in commercial lending, we want to keep growing,” says Wolfer. “And we know we will do this because we can match or beat any deal out there.”

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.