My Portfolio: https://www.patreon.com/dividendbull

One high-yielding stock that's been battered over the past couple years is Arbor Realty Trust, ticker ABR. During this time, this company has been going through a high interest rate environment, several attacks by short-seller groups, and a slowing housing market. Last week I mentioned that despite these concerns, I still see opportunity in this stock, and I recently bought a small number of additional shares. In that video I gave a brief overview of the recent developments surrounding this company, but I didn't go too in-depth. So in this video I want to dig deeper into the current state of Arbor Realty as well as the new round of allegations that came out last week.

As I discussed last week, Arbor Realty is a company that specializes in loan origination and loan servicing, primarily in the multifamily sector. They issue floating-rate bridge loans to real estate owners, developers, and investors. There are several purposes for these loans, but the most common things they're used for are property acquisitions, renovations, and construction. Companies will use these bridge loans to make a large transaction, while they're still working out the conditions for longer-term financing. So, for example, an investor might want to move ahead with the purchase of a multifamily property, but they haven't worked out a financing agreement, which can take months to finalize.