Services Overview

Sortis Capital works as an advisor with many institutional investors (primarily banks and private funds) that offer a variety of different capital programs and structures for lenders.  Contact Sortis Capital to learn about all of the various options and help determine the best fit for your lender.

Types of Capital Relationships:

  1. Same day funding warehouse facility with a bank or private institution
  2. Revolving credit facility with a bank
  3. Bulk/Flow sale relationship with private institution (lender retains servicing and IO strip)

Characteristics of the Lender:

  • Lender is capitally constrained compared to borrower demand, current capital doesn’t allow for the loan products the lender could offer, the cost of capital is too high, and/or the lender spends too much time lining up capital to fund loans
  • Loan types include bridge or Fix & Flip investor loans on residential or commercial properties, rental loans, Non-QM owner-occupied, or ground-up construction
  • Loan terms are typically 6 months to 3 years with interest only payments and rates ranging from 8% to 13% and 1 to 3 origination points
  • Lenders have loan demand of $1mm+ a month or could get there in a short period of time
  • Lenders are typically financed by private friends and family money, small family offices, small banking relationships, and/or a private institution that table funds or buys closed loans

Same Day Funding Warehouse Facility Example:

  • Loans are funded same day generally and can be held on the facility for up to 30 days (before being placed on a revolving bank credit facility or sold to a private institution)
  • Set up fees, step up fees, and non-utilization fees may apply
  • $1mm to $25mm+ facility size
  • Banks can advance up to 80% of the UPB with rates ranging from LIBOR + 4.25% to 5.5%
  • Private institutions advance up to 100% of the UPB with rates equaling the note rate of the loan

 Revolving Bank Credit Facility Example:

  • $5mm to $100mm+ facility size
  • 65% to 80% advance rate on UPB, capped at 50% to 65% of as-is collateral value
  • Rates range from LIBOR plus 4.25% to 5.0% and can be fixed or floating
  • Terms of 1 to 3 years
  • Set up fees, step up fees, and non-utilization fees may apply
  • All principal received goes to pay down the bank’s basis

Sale of Closed Loans to Private Institution Example:

  • Purchase price at 100% of UPB with lender keeping all origination points/fees
  • Fund charges a pass-through rate of 7.5% to 9.0% and originator keeps excess interest
  • Fund owns the loan on their balance sheet and collects all principal

Services

  • Capital Advisory for Lenders

Real Estate Sectors

  • Private Mortgage Lending

Customer Types

  • Private Mortgage Lenders

Sortis Capital is an innovative financial services advisory boutique that specializes in debt and equity capital placement, strategic capital advisory, loan sales advisory, and distressed situations.

Established: 2008

Office Locations

Headquarters
1124 NW Couch Street, Suite 500, Portland, Oregon, 97209

Los Angeles Office
, Los Angeles, CA, 90025

Mark Jury

Senior Managing Director/Partner

Mark is responsible for Sortis’ specialty finance debt placement, loan servicing, and securitization efforts. Formerly, he ran the distressed residential whole loan book at Merrill Lynch (and subsequently Bank of America) where he managed a portfolio of ~$1.3bn and helped design strategies at servicer to maximize value on a portfolio of over $40bn worth of loans and REO. His experience includes loan valuation and pricing, trading, capital raising and analytic model development, as well as transaction management, special servicing development and oversight, lending, and portfolio/asset management.