Reflecting on 2018: A Year of Growth for Bay Mountain Capital

Bay Mountain Capital Announces New Analyst Hire: Austin Meadows
November 30, 2018

Just like that, the new year is just around the corner! While we are excited for what’s in store in the coming year, we are proud to look back and reflect on what an incredible year 2018 was for Bay Mountain Capital.

Let’s take a look at some of the accomplishments we’re most proud of from 2018:

Asset Under Management Increases by Almost 20%

At the beginning of 2017, BMC set an ambitious company-wide goal of reaching $150 million in assets under management at the end of a five-year plan (2022 is the target year).

We couldn’t have imagined a better start to accomplishing that goal. In 2018 alone, our assets under management increased by almost 20%, and we are well on our way to achieving $150 million in assets under management by the conclusion of 2022.

At BMC, we partner with borrowers every day, working with them on investments and securing quick closings so they can achieve their own financial goals.

Ironically, we were intentional about specific investments we made within our own company that would position us to achieve this kind of growth by the end of 2018 and beyond:

BMC Employee Growth

Like with any company, the growth of a company is directly correlated not only with a growing number of employees, but the quality of the employees brought in during the expansion.

We made key hires in an analyst role and the production team as well as supplementing our executive leadership with a new chief investment officer. These new hires possessed valuable experience in the direct money lending business and have bought into our mentality at BMC. This commitment from our entire staff to treat borrowers as partners in each deal, along with a strong focus on business development, played a valuable role in the growth we’ve experienced.

Not Staying Complacent

For us, growth is more than just increasing our staff or assets under management. Growth also means refusing to stay complacent and always looking for ways to improve our workflows.

In 2018, we updated our processes for underwriting and asset management to further streamline both areas and ensure they aligned with our four core values – integrity, respect, improvement, and excellence.

Furthermore, we also made significant updates to our rates in order to stay competitive within our industry. As always, our rates are completely transparent with our borrowers. With our two programs – based on credit score – we’ve lowered our interest rates on single-family fix and flop loans by more than a point to ensure our borrowers are getting the best deal. Credit scores of 680 or higher will garner a 10.9% interest rate, while below a 680 score will net an interest rate of 12.5%.

Looking back at 2018 and into the future for the real estate industry

A strong economic year for the United States directly resulted in a strong year for the real estate industry. In addition to the economic prosperity that helped to elevate the market, price growth, low inventory and surging buyer demand made for a healthy and growing real estate industry.

As a result, the market for hard money lenders and real estate investment companies is also growing. There’s more competition out there for companies like ours, as borrowers have more choices than ever for their financing between both traditional and private means.

Although BMC operates in debt market, 2018 seemed to usher in more equity investors due to increased costs and expenses for borrowers. Bigger players are also coming into the space and acting as a conduit throughout the entire financing process.

Looking into 2019, it seems as if everyone is waiting for the other shoe to drop. A recession or dip has to be coming soon, right? Actually, the fundamentals are still strong. And while supply and demand will likely level off in 2019, that doesn’t mean we’re headed for a similar recession and bottoming out of the real estate market like we experienced around 2008.

We anticipate another strong year for real estate investments and we are prepared to partner with our existing and new borrowers to help everyone achieve their investment goals in the new year.