Amidst challenging market conditions characterized by higher interest rates and a conservative lending stance from traditional banks, financial-technology firm Nectar has emerged as a vital player in addressing the capital needs of independent landlords and investors. Founded by Derrick Barker and Brittany Mosely, Nectar focuses on providing capital to real-estate owners, particularly those with assets ranging from $50 million to $500 million, a segment often underserved by major financial institutions. In response to tightened lending by banks, Nectar has experienced remarkable growth, with a 750% increase in revenue from 2022 to 2023.
Nectar's success is attributed to its unique approach, offering mezzanine debt deals for transactions under $5 million, significantly smaller than the thresholds set by major banks. The company employs existing assets and cash flow generated by rent as collateral, allowing real-estate owners to retain more equity in their properties. The company's strategic focus on Class C properties, often housing Black Americans and people of color, aligns with its mission to facilitate affordable housing initiatives. Nectar's ability to approve financing in as little as seven days, coupled with its well-capitalized position and ongoing venture-capital backing, positions it as a crucial player in providing swift and accessible financial solutions for real estate in a dynamic economic environment.
