The $100 million W Financial Fund sticks closely to its main focus, which is providing bridge loans to New York City’s real estate players. And so far, it’s working out: W Financial, led by Gregg Winter, has never had a month of negative returns – in fact, it has generated annualized returns of nearly 10 percent through the interest on these short-term loans.
Even in the dark days of 2008 when the credit markets were on lockdown, W Financial managed to get its investors a 10.3 percent bundle.
“There’s no secret black box behind our success,” Winter told Barron’s, “simply hard work and a commitment not to deviate from our strict discipline in making loans,” he said.
Bridge loans are especially appealing in New York City, as developers have to deal with many delays stemming from community board and landmark approval decisions. A bridge lender can help alleviate the financial pressure on developers caused by these delays. [Barron’s] – Hiten Samtani