April 24, 2018
10 Years of Bay Mountain Capital: Celebrate Our Anniversary!
In recognition, BMC would like to share its history and recognize those that have contributed to its success.
Bay Mountain Capital was formed in response to the housing crisis and ensuing credit crunch that began in 2007. Banks had withdrawn from the markets they previously served and real estate investors were in dire need of capital. BMC recognized this need and began offering financing so that borrowers could take advantage of tremendous opportunities.
The original team consisted of Dean Lontos, Wayne Corley and Pam O’Bar. The company grew significantly from 2009 to 2012, focusing most of its efforts on single-family home investments. Over the first few years, BMC granted loans totaling over $100 million. These loans would be issued to restore distressed single-family properties that would subsequently sell or go for rent. The improvements made to these properties helped to stabilize neighborhoods and provided quality housing to families.
Bringing in talented high achievers has been a key part of Bay Mountain Capital’s success. During its early years, Angie Arrington and Rachel Jones joined BMC, helping to manage the company’s growing business. Soon after, Phil Sanchez, Daniel Rojas and Bryce Yamauchi came on board to help position the company for further growth.
Bay Mountain Fund I
The company pivoted significantly in 2014 from both a capital structure and a lending standpoint. In April of that year, BMC launched Bay Mountain Fund I, an open-ended mortgage pool fund. This structure provided its existing and new investors with a more efficient means of investing with BMC. This means giving them a safe means to invest in a diverse pool of borrowers, markets, and collateral types. Through 2017, BMC is proud that its fund members have enjoyed an annualized return of 11.2% on their investments.
Additionally, in response to the changing market, the company expanded its lending to more commercial borrowers in 2014. They also expanded their footprint to more lending markets. Yamauchi, who is responsible for originating commercial loans for BMC said, “We see more opportunities on the commercial side as many borrowers face an uphill battle securing traditional bank loans for credit and property condition reasons. Our future growth will be a function of our ability to find and service these borrowers with loan terms that are both competitive and flexible.”
Expansion
Since its launch 10 years ago, BMC has expanded its lending areas to include Houston, Austin, and San Antonio. This includes smaller markets in Texas as well. As the company’s expands its locations, new hires began to join the team. Sandra Thomas, Danisha Patel, Marlen Arellano and Jovana Dimas are key additions. They will help to propel the company forward as it continues to gain traction within the private lending industry. We eventually came to originate more than $280 million in loans.
Corley, a BMC principal, added, “We have many repeat borrowers because they know our team can add value to a transaction. In addition to closing loans quickly, our process can reveal potential obstacles to success as well as solutions to common issues faced by both beginning and experienced real estate entrepreneurs.”
According to Sanchez, one of BMC’s principals, “A large part of our success results from the integrity of our people and the confidence of both borrowers and investors that we strive to do the right thing in all situations.”
The Future of BMC
BMC is confident in the future of the private lending industry and its combination of safety of principal and current income returns. They have a highly skilled staff that is adaptive to change and that continues to meet the needs of the real estate entrepreneurs that they serve. As the real estate market continues to evolve, so too will BMC.
In looking back on the last ten years, Lontos said “We formed Bay Mountain Capital at the start of the last recession with the goal of providing capital to a real estate market that was undergoing significant distress amid a lack of bank financing. We have seen significant change over the last decade and it is exciting to see once downtrodden markets enjoying so much health today. We are proud that our capital has been used in almost 2000 transactions to benefit investors as well as to improve assets and the communities in which they are located.”
About Bay Mountain Capital
Bay Mountain Capital has been in business for more than a decade, closing over 2,250 loans. We specialize in financing all types of residential and commercial property investments throughout Texas, Tennessee, Oklahoma, and Georgia. Using a common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan, but can we can accelerate this where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates, fees, and terms are among the most competitive in the industry.
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