Read the full Originate Report October edition here.
One of the most impactful and pivotal initial decisions every real estate investor must make is selecting a lender to work with. Although there is certainly no shortage of lenders in the current marketplace, investors need to be cognizant of their long-term financial goals and investment strategies when making this important decision. Choosing a lender whose culture and values align with theirs is essential to ensure long-term viability and maintaining a mutually beneficial working relationship over the lifetime of the loan. Paul Rahimian’s mission is to make that decision easy by providing a truly client-centered approach to lending.
While no two loans are exactly alike, for investors specializing in ground-up and residential real estate investment portfolios, Parkview Financial is a dynamic lender who has established itself as a leader within the industry and garnered a well-deserved reputation for its proven ability to provide fast, creative financing solutions to borrowers seeking unmatched leverage coupled with a distinct certainty of execution. We had the opportunity to sit down with Paul Rahimian for a closer look at what makes Parkview Financial unique.
Lending for a Challenging Market Sector
Founded in 2009 by Paul Rahimian, CEO, Parkview Financial quickly grew into one of the most respected private construction lenders in the entire country. It’s certainly no small feat given the competitive nature of the industry, but the results speak for themselves. $2.5 billion in total loan closings since the fund’s inception in July 2015. $1 billion in loans paid off with zero losses. Over 150 loans closed to date. 350 years of combined team experience. Those numbers are mind-boggling in and of themselves, but these impressive metrics simply don’t do a company as unique and trendsetting as Parkview Financial the justice that it truly deserves. Rahimian wanted to develop a lending strategy that could accommodate ground-up construction projects that entail constantly fluctuating timelines and budgets—complicating factors that make it challenging to secure financing from conventional lenders.
In order to accomplish this vision, Rahimian focused on building the right team. For Rahimian, one of the valuable aspects of Parkview Financial is that everything is handled in-house. “The biggest distinction between Parkview and other lenders is that we lend on ground-up construction projects—and we approve, manage and service all loans in-house,” Rahimian explains. “This is rare as most other lenders use some kind of 3rd party vendors, which do not truly understand the specific project and the players as well as our in-house team.”
Rahimian is particularly proud of the team environment that he has created at Parkview Financial. Rahimian is a 3rd generation real estate developer and general contractor, who had been involved in numerous successful major development projects across the Southern California region for over 21 years prior to launching Parkview Financial. This diverse background provides him and his colleagues with a unique insight into transactions and allows them to craft creative, custom-tailored funding solutions for even the most complex deals—as Rahimian puts it: “The construction team at Parkview has over 100 years of collective experience in construction and real estate development. “Our experience uniquely positions us to see projects through the perspective of the developer, giving us a distinct advantage to lenders fixated on crunching numbers. I truly believe having the right people with the right backgrounds all working towards a common goal—namely delivering the best product possible to our clients—is the secret to our success.”
Parkview Financial premises its underwriting protocol on transparency and flexibility—a winning combination that has produced consistent results over the years. “We only underwrite and close deals that make sense,” says Rahimian. “Property valuations and pro formas need to be considered on a one-off basis that looks at the local market, supply and demand, inventory, and track record of the borrower.” By evaluating each loan individually on a case-by-case basis and providing open and honest feedback to prospective clients regarding the strengths and weaknesses of their proposed projects, all of Parkview’s loans are ideally positioned for success. “We tell our applicants what they need to hear, not necessarily what they want to hear,” says Rahimian. “I believe that degree of transparency is truly appreciated—it produces a trusting environment conducive to success.”
Take the COVID-19 pandemic for example. Despite the resultant widespread market instability and economic turbulence associated with the Pandemic, Parkview Financial set a new record over the course of 2020. During a year in which several major global corporations posted record lows, Parkview Financial closed $600 million in construction loans across the country, a grand total of 26 transactions. That momentum hasn’t slowed in 2021 either—with Parkview posting $490 million in new loan originations amidst equity growth of 26% in the first half of this year alone. With Rahimian at the helm, you can fully expect further growth from Parkview Financial—something that excites and motivates Rahimian and his co-workers: “We are proud to participate as a proactive partner with our borrowers and find joy in seeing their new projects realized.”