finance

Aurum and Sharpe was founded in 2017 by me, Bryan Hanley, and one of my best friends, Rudy Renelique. After many years working at big banks like Chase, and Wells Fargo, we decided we could bring value to a mortgage market that was starving for independent thinkers. So we started Aurum and Sharpe over a phone call about financing a multi-family deal in Brooklyn. Since starting this business we’ve been on many adventures from financing a $20 million portfolio of single families, to meeting the President of Rwanda and Finance Minister of Namibia.

Rudy has gone on to start his own firm, Overture Capital, while I’ve stayed on to grow Aurum and Sharpe. Aurum is the original Latin word for gold (that’s why the periodic table has it listed at Au). We chose it because we think of our word as “as good as Gold.” And in that vein, we want to add value to every customer we come in contact with. Our promise is that by working with us, you will increase your Freedom, Purpose, and Fulfillment.

Our process includes learning your overall objectives and where you want to go in your life so that we make sure your financing enhances your life and gets you to your destination much faster. What that means though, is that we are not like every other broker on the street that will only do a surface level amount of learning about you, your life, and your motivations. For us, that is Gold. We want to learn how we can tailor your financing so that you thrive in your life! So before we talk about rates, terms, or anything else, we are going to try and figure out how to add value through financing.

We know this approach isn’t for everyone. But if this resonates with you, lets talk: 917 475 6207

July 16, 2024

The Lifecycle of a Residential Real Estate Investor

The Lifecycle of a Residential Real Estate Investor Investing in residential real estate is a journey that offers the potential for significant financial rewards, but it also comes with its own set of challenges and learning curves. Understanding the lifecycle of a residential real estate investor can help prospective investors prepare for the various stages and make informed decisions along the way. Here, we explore the typical stages that investors go through, from initial planning to building and managing a robust real estate portfolio. Stage 1: Education and Planning The journey of a residential real estate investor often begins with education and planning. Aspiring investors start by educating themselves about the real estate market, investment strategies, and financial principles. This stage involves: Stage 2: Market Research and Property Search Once investors have a solid foundation of knowledge, they move on […]
January 10, 2024

DSCR Loan FAQs

Why does a DSCR lender need an operating agreement for my LLC if its not required by the state? This question comes up at least half the time in DSCR loans. Often, DSCR lenders will not close unless there is an operating agreement in the borrower’s file. The reason for this is that the borrower on the loan technically is the LLC. The person behind the LLC is the sponsor, or guarantor. The lender wants to know who legally has right to the property through the LLC. One of the jobs of the operating agreement is to outline who owns the LLC and what percentage they own. Typically any sponsor who owns 20-25% or more of the LLC would be required to be a signer on the loan as well. If you need a mortgage and need help with this, […]
September 29, 2023

Navigating the World of Retail Commercial Real Estate Deal Financing

Retail Commercial Real Estate Deal Financing
September 13, 2023

5 Super Effective, Killer, Unique Ways Real Estate Investors Find Deals

Real estate investment is a dynamic and lucrative field that offers numerous opportunities for investors to grow their wealth. However, finding the right deals is often the most challenging aspect of real estate investment. While traditional methods such as working with real estate agents or scouring online listings can be effective, seasoned investors often employ more innovative and unique strategies to discover hidden gems. In this article, we will explore five super effective, killer, and unique ways real estate investors find deals. Driving for Dollars One of the most unconventional yet highly effective methods used by real estate investors is “Driving for Dollars.” This technique involves physically driving through neighborhoods, particularly those with high potential for investment, and scouting properties that appear distressed or neglected. This hands-on approach allows investors to identify opportunities that may not be listed on the […]
April 25, 2023
How To Calculate DSCR

How to Calculate DSCR: A Simple Guide for the Savvy-ish Investor

Are you a real estate investor who’s a bit confused about what DSCR is and how to calculate it? Don’t worry, you’re not alone. DSCR (Debt Service Coverage Ratio) can seem like a complicated financial metric that only the most mathematically gifted investors can understand. But fear not! With a little bit of humor and a lot of patience, we’re going to break it down for you. First things first, let’s define what DSCR actually is. In simple terms, DSCR measures a property’s ability to generate enough income to cover its debt obligations. Essentially, it’s a way to determine if a property is generating enough cash flow to pay its mortgage and other debt obligations. This ratio is important for lenders to assess a borrower’s ability to repay a loan, and for investors to assess the profitability of a potential […]
July 21, 2017

How to Buy a New Building Using Equity You Already Have

Many property owners try to buy new property all the time. In most cases, this involves coming up with a hefty down payment. However, you can avoid having to organize hundreds of thousands of dollars in cash by buying a new building using equity in other properties you already have, a process called cross collateralization. The bank or lender would write a loan using both properties or a number of properties as collateral for the new property you’re buying. The lender then places a lien on all the properties being used as collateral, which includes the property you’re buying and the other properties you’re using as equity. Cross collateralization is uncommon, but it can be done. To qualify for this type of loan, you need to have significant equity in your other properties. Lenders that do this generally will allow […]
July 21, 2017

What is a Global Debt Service Coverage Ratio and When Does it Affect You?

Not all commercial real estate lenders are created equal. Each lender has their own differences and peculiarities. When evaluating your income for loan purposes, some banks will take the debt service coverage ratio (DSCR) of just the property that you are financing. Others however, will take into account all of your other properties to arrive at what it’s called the global debt service coverage ratio. This can be troublesome for some borrowers. If they are just breaking even on one or a few properties, it could negatively affect them on another property they are trying to find. It is useful to get a sense of which lenders use the global debt service coverage ratio and which do not. Aurum & Sharpe has extent extensive experience in navigating the confusing lending environment. We evaluate whether your global debt service coverage ratio […]
July 21, 2017

How to Ensure that your Application for a Commercial Real Estate Mortgage Loan will be Approved

If you’ve looked to finance a commercial property in the last 3 to 5 years, you know that banks are happier to say no then they are to say yes. In this environment, it is imperative that you know your options. The first and most important step to ensuring that your application will be approved is making sure that your loan officer puts together a winning loan package. The loan package describes who you are to the lenders. It needs to put your best foot forward as it explains your challenges in the most honest and accurate way. Banks and lenders will deny your loan on the slightest pretense of instability. Provided that you are qualified, as long as you follow the steps in this outline, your loan application should be successful. Step 1: Gather all your financial documentation and […]
July 21, 2017
Calculating Your Cap Rate and Creating Positive Leverage

Calculating Your Cap Rate and Creating Positive Leverage

The capitalization rate, or cap rate for short, is the rate of return on an investment property based on the amount of income it’s expected to generate in the present year. By calculating the cap rate of a property, you can see the potential rate of return on an investment. Compare the cap rates of multiple properties to see which one is the wisest investment.   Calculating the cap rate The equation to manually calculate a cap rate is fairly simple. All you have to do is calculate the investment property’s net operating income (NOI) by subtracting the total operating expenses from the total operating revenue. Then, you divide the result by the value of the property. total operating revenue – total operating expenses = Net Operating Income (NOI) Net Operating Income (NOI) / value of property= Cap Rate   Let’s […]
June 8, 2017

What is Internal Rate of Return (IRR) and Why Does it Matter?

The internal rate of return (IRR) is a metric used by real estate professionals to determine the net money you’ve made on an investment by considering the timing and magnitude of the return. However, its main use is to compare investments. By calculating the IRR of many potential investments, you can see which one is wiser. The calculated IRRs must be higher than the company’s cost of capital, and whichever one is highest is the wiser investment (provided they have equal risk).     The manual calculation for IRR is highly complex, and can only be solved through tedious trial and error.  This equation is as complicated as it looks, and it’s only a three-year calculation. To solve it, you would have to keep testing potential IRRs until you get an NPV equal to zero. Your result would be the […]