A Note on Relationships

A Note on Relationships

I'd like to take this opportunity to highlight a loan that we were able to get into escrow 1 week from the time the borrower submitted his scenario. This is not something we can do every time, but very possible for a proven borrower that knows the dance. I'll refer to this borrower as Keith.

The first loan is always the hardest. We have a very good track record on our loans due to our strict underwriting guidelines, and we require a lot of information. When we talk about building a relationship there is more to consider that just the property. Our first loan with Keith took about a month to exchange this information and do the appropriate research. It was a lot of work, and we were down to the wire on the purchase agreement, but the foundation was laid.

We've worked a few deals over the past year, and Keith's 2nd loan with us has recently paid off. Now that he has successfully exited two loans, hes developing a reputation with our investors. The construction was completed within the budget and the anticipated time frame, and he was never late with a monthly payment. When he came to us with a new scenario, he knew exactly what information to send. In the course of one Friday morning, I looked it over, approved the scenario, Keith wired us his refundable deposit, and I called our property inspector. By Monday, the inspector informed me that the property checked out. On Friday, one week after Keith's initial email submitting his property, Loan docs were out.

We value our relationships, and work very hard to maintain them. Multiple deals with a borrower become easier and easier, and our relationships with brokers is the same. The first one is always the hardest, but it gets easier and faster over time.

We also have a rule with brokers, that if a broker brings us a repeat borrower, each deal has to go through that broker. If that borrower were to come to us directly, we would refer them back to that original broker before we would proceed with the loan. We're happy to work directly with those borrowers, but only after including that broker's fee, and with the broker's consent.

This business is filled with short term relationships with many different people, but it's the long fruitful relationships that make our business successful.

Kris Gillmore
Loan Coordinator