Private Capital USA Joins Long Island Business Institute, American Association of Private Lenders

LongIsland.com

Co-Founder Richard Chertock said notes this represents a strong building block for expanding the company’s scope and client base.

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Richard Chertock, Private Capital USA co-founder and in-house counsel.

Photo by: Private Capital USA

Long Island, NY - April 7, 2017 - Private Capital USA, a private lending firm based out of Ronkonkoma, NY, has had their finger squarely on the pulse of the Long Island real estate market ever since the business first opened their doors three years ago. Today, they’re doing better than ever, and in an effort to expand their scope further, Richard Chertock – company co-founder and in-house counsel – is proud to announce that Private Capital USA has joined two prominent groups which focus on their core principles – the Long Island Business Institute and American Association of Private Lenders.
 
Chertock noted that Private Capital USA specializes in lending money to individuals and groups who purchase various homes and/or buildings, renovate them from top-to-bottom, and then put them back out on the market to sell at a profit.
 
“We are what is commonly known as 'hard money' or 'private' lenders...we provide funding for contractors and developers to buy, fix, and flip properties,” he said. “As for who we lend to, we pretty much do it all...from single and multi-family residential buy, fix, and flip to commercial properties, construction loans, and bridge loans. We can lend anywhere from a few hundred thousand dollars to ten million.”
 
Chertock said that he was fortunate enough to have grown up working in the industry; he originally got his start working alongside his father learning the principles and ins and outs of real estate that he would later apply in his future endeavors.
 
“I have 30 years’ experience in real estate law. Back in the 1980’s through the 1990’s, I used to lend money with my father. We did it on a small scale, maybe having two or three million dollars out on the street at any given time. But we would help out some of his clients and business associates who needed money, but couldn't go to a bank for whatever reason,” he said. “If lending is done right, it's a highly profitable endeavor...when you lend the money, everyone's happy. No one's getting burned, and you're enabling the borrower to leverage their money into more than one project at a time, or do a project where they wouldn't ordinarily have enough funds to do so…it's a win-win for everybody.”
 
A recent milestone in terms of the growth of Private Capital USA is their new membership with two prominent organizations that cater to businesses in the real estate field.  First being the American Association of Private Lenders – a national group representing the private real estate and peer-to-peer lending industry – which Chertock said would represent a strong building block for expanding his company’s scope and client base.
 
“We joined the American Association of Private Lenders because we wanted to meet other people in the industry, network and  get warehouse funding,” he said. “We met a few players that are in the same industry, and there was a synergy between us where we were able to help each other out, so that was the main reason for joining the American Association of Private Lenders.”
 
The second group that Private Capital USA has joined is the Long Island Business Institute, which, for nearly 47 years, has been providing relevant, business-oriented curriculum in professional academic settings for people seeking to enter the business field. Chertock said the association is only natural, given the strong ties his company has to the Long Island community.
 
“We're very heavily involved in Long Island and construction in general around Long Island, so we want to keep our finger on the pulse of what's going on within the island itself. “We can lend wherever we want in the country, but we have a lot of experience here in the Long Island market buying, flipping, and selling. Between the four founders of Private Capital USA, we have over a hundred years of experience in the Long Island real estate market, and it's where we’re the most comfortable working.”
 
These new strategic partnerships stand to continue Private Capital USA’s assertion into success, combined with the recent gains the overall real estate market has been experiencing on a national level. With the slow and steady improvement of the national economy has come an improvement in the housing market; this has translated to a period of prosperity for hard money lenders such as Private Capital USA, and Chertock noted that business has been reaching an all-time high.
 
“The market has not been this good in years. We've got a perfect recipe right now- a very low inventory, which predates a seller's market; very low interest rates; and prices that are going up approximately 7.5% every year,” he said. “That is the perfect formula for someone who wants to buy, fix, and flip because there's a huge demand for what is, in essence, a new home on the market. So anyone who can buy a house for a low market price, make it brand new, and put it back on the market, is going to be profitable. And there's no shortage of buyers.”
 
To find out more, please visit www.privatecapitalusa.com.