BCRM Group, an innovative real estate finance startup based in New York, spearheads its launch to fund earnest money deposits for real estate acquisitions.
Unlike anyone else in the industry, owners Ben Cohn and Randy Modell have formed BCRM Group that offers buyers outside funding for the very earliest stage of a potential real estate investment.
RANDY MODELL
Typically, real-estate buyers initiate their purchases with a “soft period,” during which due diligence can be conducted. Sellers customarily require an earnest money deposit of as much as 10 percent of the purchase price before granting an option to a purchaser for the above period, while the property is withdrawn from the market. BCRM Group was developed to ease the liquidity burdens of such deposits.
“As an investment sales broker for 15-years, I have witnessed countless talented entrepreneurs pass on buying opportunities because they did not have immediate funds available for the deposit. If they had the funds available to them, I am confident they would have secured a mortgage and raised the required equity,” said Modell. “There is a need in the market that has not been serviced, but now investors will have the power they need to proceed with all real estate deals being considered.”
Cohn and Modell believe this platform is geared toward borrowers of varying profiles, including:
Entrepreneurs beginning their real estate career.
Experienced investors, often presented with several opportunities, whose immediate funds may be unavailable to tie up every deal being considered.
Financial investors with a preference for delaying the internal rate of return clock by funding deposits off balance sheet.
“Inspired by clients and contacts in the real estate market looking for deposit funding, we have created a success-based pricing structure that is sensitive to the buyer’s all-in costs,” said Cohn.
For deals that close, services will cost the buyer approximately one percent of the total purchase price. Currently, the founders are financing this new venture from their own resources, with institutional backing and crowd funding as the next development in their growth.
