Kennedy Funding closes $ 1.4 million land loan in Clarendon, Jamaica: South Florida Caribbean News
The loan is the fourth outside the United States closed by the company in 2020
[ENGLEWOOD CLIFFS, N.J.] – For a US-based borrower, getting a loan outside of the US is no easy feat. Bring raw land into the mix, and many borrowers just assume the odds are impossible.
This is not the case for Kennedy Funding, a direct private lender based in Englewood Cliffs, New Jersey, which has extensive experience in making loans around the world.
Company executives today announced the closing of a $ 1.4 million loan to P&L Holding Ltd. The loan proceeds will be used to acquire 2,486.31 acres of raw land with waterfront views located at Milk River, Clarendon Parish, Jamaica.
“Over the years we have spent working closely with experts and authorities in Jamaica, the Bahamas, Canada and many other countries, we have honed the skills and knowledge necessary to navigate the laws on real estate and money lending in many countries outside of the United States, ”said Kevin Wolfer, CEO of Kennedy Funding. “Without this knowledge and experience, lenders have no chance of successfully closing loans. We are proud to say that we once again put our expertise at the service of P&L Holding to obtain the necessary financing for the completion of this acquisition. “
According to Wolfer, international lending faces unique challenges and scrutiny not experienced by borrowers working in the country. Differences in rules and regulations, the physical distance between the borrower and the property, varying economic conditions, and different political climates all play a role in a lender’s ability to secure a loan for a borrower.
“Just like the United States and Canada have different laws, Jamaica and Bermuda have different laws,” Wolfer said. “It’s not just about being ready to lend outside of the United States – it’s about having the first-hand knowledge, experience and ability to close the deal.”
Wolfer added that lending on raw land is an additional barrier to obtaining financing overseas, for the same reasons that land loans can be difficult to obtain in the United States.
“Most borrowers around the world see raw land as a risky proposition because there are so many unknowns, and if there is non-payment and the property itself is secured, is it much more difficult for a lender to sell the property, ”Wolfer says.
Kennedy Funding closed a number of loans outside U.S. borders in 2020, including a $ 2.633 million loan for a residential development in Brazil, $ 3 million for a residential complex in Belize and a $ 3 million loan for a community residential in the Bahamas.
Even with the global COVID-19 pandemic dragging down tourism and other industries fueling economies overseas, Kennedy Funding has always worked closely with every borrower to find a way to secure financing.
“It has been a year of economic uncertainty around the world, but with thoughtful and careful planning, we are still able to provide the financing our clients need to participate in lucrative commercial real estate activities around the world,” said Wolfer said. “Regardless of the challenges, our experience – and subsequent results – shows that we have the skills to make the deal happen.”