SACH
- Sachem Capital Corp.
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Overview
Company Summary
Sachem Capital Corp. (SACH) is a real estate finance company that focuses on providing short-term, secured, and non-bank loans to real estate investors and developers. The company specializes in lending against properties located in Connecticut, New York, and Massachusetts, primarily in the residential and commercial sectors.
Sachem Capital operates as a specialty finance company that fills a gap in the lending market by offering quick and flexible financing solutions to borrowers who may not qualify for traditional bank loans. These borrowers often require immediate funding for time-sensitive projects, such as property acquisitions, construction or renovation, or refinancing existing debt.
As a lender, Sachem Capital evaluates the value and potential of the collateral property rather than placing significant emphasis on the borrower's creditworthiness. This approach allows the company to provide financing to investors and developers with different levels of credit history or financial stability. Sachem Capital primarily focuses on properties with conservative loan-to-value ratios to mitigate risk.
Typically, the loans offered by Sachem Capital are short-term in nature, ranging from a few months to a couple of years, and are secured by collateral properties. The interest rates charged on these loans are generally higher than those offered by traditional banks due to the higher risk associated with this type of lending.
Sachem Capital's revenue primarily comes from interest income generated by the loans it originates. The company's business model relies on origination fees, interest payments, extension fees, and late fees to generate income.
In summary, Sachem Capital operates as a real estate finance company that offers short-term, secured loans to real estate investors and developers. By focusing on properties in specific regions and employing a collateral-focused lending approach, the company provides a solution for borrowers in need of fast financing who may not be eligible for traditional bank loans.