Cash today, finance tomorrow: the trend fueling Miami's luxury market

A significant factor contributing to Miami’s allure, according to Krebs, is its expanding infrastructure, notably developments like 830 Brickell and new corporate residents like Microsoft and Citadel.

“Santander Bank…has basically become a huge financial hub,” he added, suggesting that these shifts draw not only affluent clients but also foreign nationals and investors who see Miami as a gateway to the US economy. Many of these clients, however, don’t fit traditional financing molds, necessitating tailored approaches.

“Some of those individuals fit the banking quadrant…others fit within non-QM,” Krebs said, explaining how his firm often meets the needs of clients with unconventional financial profiles. 

Demand for non-conventional mortgage products

The demand for non-traditional mortgage products has surged following recent banking sector disruptions, such as the collapses of First Republic and Signature Bank in 2023.

“Just last month, we did a purchase on a non-warrantable condo for a borrower… at 75% financing,” Krebs said, illustrating the substantial value of loans still being issued under alternative programs. In this volatile environment, non-QM products and bridge loans have emerged as vital tools. Bridge loans, Krebs noted, now make up around “30-40% of our book,” appealing to buyers aiming for fast, low-paperwork transactions. Non-QM loans, which comprise about 50% of DAK’s portfolio, provide options for clients whose tax structures or income sources don’t align with conventional financing standards.