Manhattan Bridge Capital, Inc (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc is a New York based real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The company provides short term, secured, non bank loans, often referred to as hard money loans, to real estate investors for the acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. It operates with the intent to qualify as a real estate investment trust for federal tax purposes.

Revenue is generated primarily from the interest borrowers pay on the loans and, to a lesser extent, from loan fee income such as origination fees, extension fees and other charges related to underwriting and funding. The company’s loan portfolio consists of short term first mortgages with fixed rates typically ranging from 9% to 12.5% per annum, and many agreements include a provision allowing interest to be charged at the greater of the stated rate or the prime rate plus 3%. Origination fees or points range from 0% to 2% of the original principal amount.

Manhattan Bridge Capital, Inc competes in a highly competitive real estate finance market that includes banks, institutional lenders, specialty finance companies, mortgage REITs and other financial intermediaries. Its competitive advantages stem from the ability to approve and fund loans quickly, long standing relationships with repeat borrowers, deep knowledge of the New York metropolitan area real estate market, disciplined underwriting procedures and a vertically integrated loan origination platform. The company also benefits from having no legacy distressed assets and a flexible structure that allows it to tailor loan terms to individual borrower needs.

The company serves real estate investors and developers who seek short term financing for the acquisition, renovation, construction or improvement of residential and commercial properties. Borrowers are primarily individuals or entities operating in the New York metropolitan area, including New Jersey and Connecticut, and in Florida, and they typically use the loan proceeds for non income producing assets held for investment or resale. No specific customer names are disclosed in the filing.