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The Florida real estate market, particularly high-end areas in Miami and South Florida, boasts breathtaking vistas, luxury condos, and coveted beachfront properties. However, the million-dollar valuations of these properties present unique challenges for investors, from high taxes and insurance costs to steep condo association fees and rental income that often falls short of covering expenses. But one company is turning these hurdles into stepping stones, redefining the financial landscape in the process: Stratton Equities.
Under the guidance of CEO Michael Mikhail, a man who turned his journey from homelessness to the helm of a thriving enterprise into a beacon of resilience and strategic business acumen, Stratton Equities has emerged as a frontrunner in the real estate finance sector. Expanding into the Miami, Florida market, Stratton Equities brings its innovative solutions and unique programs to help investors navigate this challenging terrain.
Stratton Equities, a leading private money and NON-QM (non-qualified mortgage) lender in the US, is renowned for its diverse range of mortgage programs. By offering unique, customized loan programs, Stratton Equities stands apart, powering the dreams of entrepreneurs, real estate professionals, and mortgage brokers across the nation. Aiming for an impressive $1.2 billion in annual closed loan volume or $100 million monthly, Stratton Equities consistently proves its mettle in a highly competitive market.
The company’s recent expansion into the Miami market is the latest chapter in its remarkable journey. Facing a market where property values for condos reach millions and rental income often falls short of covering expenses, Stratton Equities offers a lifeline to investors with their innovative “no ratio mortgage programs.”
The “No Ratio Mortgage Programs”: Turning the Tables in Miami
Unlike most lenders, Stratton Equities’ “no ratio mortgage programs” do not consider the borrower’s personal income or the subject’s property dept servicing- a term which refers to the combined costs associated with owning an investment property- when financing a property purchase or refinancing.
This includes expenses like monthly taxes, insurance, mortgage payments, and, in the case of condominiums, association dues. The typical approach to calculate debt service coverage ratio (DSCR) involves subtracting these expenses from the potential rental income. However, in Miami’s market, rental income rarely surpasses the total sum of these expenditures, thereby inhibiting a regular DSCR loan.
Stratton Equities offers a transformative solution with their “no ratio mortgage programs”. The property is closed in an LLC, providing a solution to the challenge of properties that do not generate sufficient rental income. Although this approach may result in lower loan-to-value (LTV) and slightly higher interest rates, it presents an opportunity for investors in the Miami market that few others offer.
Another critical facet of South Florida’s real estate market is the burgeoning Airbnb scene. Short-term rentals offer income that often exceeds traditional long-term leases. For example, while a 12-month lease might yield $4,000 per month, short-term rentals can generate three to four times that amount in the same period. Despite this potential, most lenders overlook this income stream. Not so with Stratton Equities. Recognizing the opportunity, the company offers niche mortgage programs that allow to consider the past 12 months of Airbnb rental income when assessing borrower qualifications, thereby enabling investors to capitalize on this lucrative market.
A People-Centric Approach
In a rapidly evolving real estate market, what truly distinguishes a company is its unique approach and business philosophy. At Stratton Equities, these distinguishing factors are a keen focus on its employees, a customized approach to private money NON-QM mortgage programs, and a commitment to filling a significant gap in the mortgage industry.
A critical observation of the mortgage industry reveals a common pattern: most lenders focus on a narrow range of mortgage programs. Designed to bridge this gap and transform the mortgage industry’s landscape, Stratton Equities and their innovative business model is focused on customization and empowerment, redefining real estate financing in Miami and beyond.
The Stratton Advantage: Swift Closings and Extensive Networks
Stratton Equities prides itself on its speedy closing times, a testament to their efficiency and commitment to customer satisfaction. This proficiency, coupled with an extensive network in the Florida, Miami, and South Florida real estate markets, serves their borrowers and investors well.
Through Stratton Equities, Michael Mikhail continues to inspire, lead, and redefine the market, turning challenges into opportunities, and dreams into reality.
Follow Stratton Equities by visiting their website, Stratton Equities, and connect with them on their social media platforms: Instagram, Facebook, and YouTube @StrattonEquities, LinkedIn @stratton-equities, and Twitter @Strattonequity.
