How to Benefit from a Private Money Loan

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By Stratton Equities

Banks used to be the only option for real estate investors trying to take out loans. Nowadays, private money lenders are allowing investors to borrow money under more flexible conditions. Banks and traditional financial institutions can reject your loan application for multiple reasons—your credit score, your debt-to-income ratio, employment status, etc.— What private money lenders do is implement a framework that makes it easier and more conducive to be a real estate investor.

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The real estate market moves fast, and it is often crucial to act quickly. But the process of getting a traditional loan through a bank can often be lengthy and complicated. Many of the solutions and loan programs from private money lenders are easier and quicker to get than through banks, which is why private money loans are often better options for real estate investors.

Making investing easier

What private money lenders like Stratton Equities do is accommodate real estate investors.
“Real estate investors, as we all know, don’t have the greatest of tax returns,” Stratton Equities’ CEO Michael Mikhail said. “They move money around, have different trusts, and have different accounts. Banks absolutely frown upon that and they actually hate it. Good luck getting a loan through a bank or mortgage company if you’re a hardcore real estate investor.”
The programs offered by private money lenders are designed for investors, who oftentimes can’t show their income and make a lot of monetary transactions. Companies like Stratton Equities have put in place certain standards that make it easier to take out a real estate investment property mortgage. These include no tax returns, no upfront fees, and no junk fees.
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The closing time for loans from private money lenders is much faster. This element can be crucial for investors, as sometimes the faster you close, the better chance you have at securing a transaction. Also, the LTV (loan to value) ratio is higher with private money lenders. Loans from traditional institutions on investment properties usually max out at 70% LTV, while those from private money lender Stratton Equities can go up to 85%. You’ll likely be spending less through private money lenders too. “If you go to a bank, you’re going to have PMI (private mortgage insurance) with those loans, a few extra hundred dollars per month,” Mikhail explained.

The Loan Process

The first thing you’ll want to do to get a private money or NON-QM loan, for example a hard money loan is to contact a private money lender. As the borrower, you should be ready to provide the lender with information like the location of the property, purchase price, and estimated appraised value. The lender will ask questions to get to know you and your borrowing history. After this, the lender will appraise the property and come up with a loan offer for you. The lender will review the documentation and complete the underwriting process for the loan. This process is usually speedy, but it varies from lender to lender.
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After the loan is completed with underwriting it gets moved to the closing department. As a borrower, you’ll have to sign a variety of documents during this phase, but it is relatively straightforward. The lender will then send the funds to the title company so the deal can be completed. Many real estate investors have found that getting loans from private money lenders is their best option for achieving their investment goals. Be it a hard money or a soft money loan, private money lenders are faster, more understanding, and more lenient than mortgage companies and banks. You have to consider that these companies’ sole purpose is to give loans to real estate investors, so naturally, they’ve found ways to make the process smoother. If you’re thinking of getting into real estate investing, you should definitely take these factors into account.
Contact Stratton Equities, the leading hard money and NON-QM lender, to speak with one of their talented and experienced loan officers at 800-962-6613, email us, or apply for loan pre-qualification today!

Why Are Bridge Loans A Great Choice For Real Estate Investors?

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By Stratton Equities

In the world of private lending, real estate entrepreneurs are building strong careers investing in real estate utilizing asset-based loans.

An asset-based loan product is based on the value of the available equity in the property, it closes faster than a traditional mortgage, and requires less paperwork. One of the most common asset-based loan products are bridge loans and they are quickly becoming a perfect solution for real estate investors who are looking to grow their investment portfolio.

What are bridge loans?

A bridge loan is defined as a short-term (12-24 months) real estate loan that closes faster than term loans or conventional loans. Real Estate Investors work with lenders who offer bridge loans, because not only do they close quickly, the guidelines are more lax, therefore there is less underwriting and documentation needed.
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​Real Estate Bridge loans are temporary loans, secured by the asset (real estate), the typical property bridge loan has a term of 12-24 months, although many bridge loan lenders will grant the owner the option to extend his loan for six months to one year.

Why should you get a bridge loan?

There are more benefits than you can count for with bridge loans. The greatest benefit is the speedy approval process. As a real estate investor, with a simplified approval process, it becomes quick, which is key to getting a great real estate property before someone else does. However, as a result of the faster process, they have higher interest rates. If you are a real estate investor that does not have a stable cash flow or if you are self-employed, this is perfect for you. The private lender does not look at your salary or tax returns so you don’t need to worry if you do not have a stable income. Another benefit is how the loan is utilized. It doesn’t need to be solely purchasing a specific property but can be used for a variety of purposes. For example, it can be used for Cashout or Rate & Term programs. Since it’s a bridge loan, it can give you the flexibility you need to stay afloat and let your real estate business thrive.
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Why Should You Use a Bridge Loan?

  • It’s Straightforward & Easy : This type of loan has short-term financing (12-24 months) for real estate investors, who prefer to finance the purchase and/or rehab of their investment property, with a Fix and Flip loan (also a Bridge Loan) or a Cash Out Refinance loan.
  • ​Quick Access to Funds: With conventional loans, there are qualifications that restrict you from getting access to those funds. With a Bridge Loan, there are less guidelines, underwriting, and restrictions that will provide you with quick access to financing.
  • ​For Every Type of Real Estate Investor: A Bridge Loan is a great solution for any real estate investor – at all experience levels.
  • ​Options for all types of Properties: At Stratton Equities, we have Bridge Loans that are tailored to your investment needs. Here are some of our Bridge Loan options for Real Estate Investors; Fix and Flip, Cash Out Refinance, or Purchase Money.

​BRIDGE Loan Summary

  • ​​Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
  • Rates Starting at 7.25%
  • $100K – $5M
  • Up to 75% LTV
  • Blanket Loan Options Available
  • Fixed rates/Adjustable
  • 9-24 Month Terms
  • Interest Only Payments
  • Purchase, Refinance, or Cash Out
  • Foreign Nationals Eligible
  • No Prepayment Penalty Option Available

How do you apply for a bridge loan?

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If you need a quick streamlined process with a repayment phase of 12-24 months, with less underwriting and documentation, these loans can be approved quickly and even extended if you wish. There is also no minimum FICO requirement. These are great loans for real estate investors with any experience level. They also work for the majority of investment properties. Call us at 800-962-6613 or contact us at [email protected] and apply now at https://www.strattonequities.com/loan-pre-qualification to find out whether you are eligible for loan pre-qualification!

Benefits of NO-DOC Loans for Multi-family Properties

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Special submission by Michael Mikhail, CEO of Stratton Equities

If you’ve ever considered looking into purchasing real estate, it can almost be daunting to decide what time of property to purchase. The most common real estate investments are multi-family properties. These types of buildings, investment homes, and apartments/condos are ideal assets for their ability to increase cash flow for the property owner.

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Once you’ve found the multi-family property you’d like to purchase, you can begin the loan application process to determine which type of private money loan program is right for you.
In the world of private money lending, there are several loan programs for multi-family properties, including multi-family bridge loans and NO-DOC multi-family loans. However for self-employed real estate entrepreneurs, NO-DOC multi-family loans have become the ideal choice.

What is a NO-DOC Multi-family Loan?

A NO-DOC multi-family loan is a type of term loan program that does not require a verification of income or tax returns from the borrower. This type of loan product is beneficial for multi-family borrowers who do not have the ability to go to the bank due to their documented income, closing timeline, and employment history. NO-DOC Term loans are defined as non-qualified (NON-QM) mortgages and are long-term (5/1 ARM, 7/1 ARM, 30 Year Fixed) real estate investment programs. Unlike conventional investment property loans that max out at 70% LTV, a NO-DOC Multi-family Loan Program maxes at 85% LTV and with no PMI. This allows the borrower to put less money down on their purchase. Only Real Estate Investors with high credit scores (over 650) are eligible for a NO-DOC Multifamily Mortgage Loans.
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NO-DOC Multi-family Loan Overview: • Investment Properties Only: Multi-Family, Commercial, Mixed Use • Rates Starting at 4.375% • $100K – $5M • Up to 85% LTV • Blanket Loan Options Available • Fixed rates/Adjustable • 5/1 ARM, 7/1 ARM, 30 Year Fixed • Interest Only Option Available • Foreign Nationals Eligible • No Prepayment Penalty Option Available

Why Should Real Estate Investors Use NO-DOC Loans on Multi-family Properties?

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The reason why multi-family properties are an ideal purchase for real estate investors is due to the ability to increase cash flow. Multi-family buildings or investment homes have multiple units that can easily be rented out providing passive income to the owner of the property.
If you are a real estate investor hoping to buy a multi-family property, the quick approval process (21-35 Days) of a NO-DOC Mult-family loan is perfect for real estate investing.
They’re especially great for long-term investments because borrowers do not need to show any income verification and can get a multifamily home which is a long-term investment and can provide you with long-term passive income.
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How to Apply for a NO-DOC Multi-family Loan?

Although many lenders do not offer this type of loan, those that do are a great option for real estate investors who are unable to provide the stricter guidelines of a traditional loan. The relationship between the borrower and the lender is based on the idea that the borrower will be able to afford and be able to pay the loan payments. Since they are riskier due to the fact that there is no verification of income or tax returns, you tend to get higher interest rates than other loan programs.
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However, because there is less documentation and underwriting, you do get a quicker approval process and flexibility. In this type of loan, the loan heavily relies on the value of the property.
At Stratton Equities, our mission is to make private money lending easy, efficient, and worry-free. We help first time real estate investors, experienced borrowers, and professionals in the mortgage and real estate industry succeed with a simple 3-step process, including Pre-Approval, Processing & Underwriting, and Funding.
Call us at 800-962-6613 or contact us at [email protected] and apply now at https://www.strattonequities.com/loan-pre-qualification to find out whether you are eligible for loan pre-qualification!

Hard Money Loans & Why You Should Work with a Hard Money Lender

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By Michael Mikhail, CEO & Founder, Stratton Equities

Are you looking to finance a real estate investment but cannot get conventional financing due to a recent foreclosure or short sale? A Hard Money Loan might be the right option for you. Working with a Hard Money Lender will allow you to have your loan approved in half the time a traditional bank loan takes, giving you the opportunity to quickly purchase high in demand properties.

What is a Hard Money Loan?

A Hard Money Loan is ideal for the real estate investor who might have issues obtaining a traditional bank loan or a loan with full underwriting, such as a Fix and Flip Loan.
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A Hard Money Loan is an asset-based loan: the financing is based on the Loan to Value (LTV) of the Asset. There are less restrictions than for other types of loans, so full underwriting and no minimum FICO score are required for the borrower, meaning you don’t have to worry about bankruptcies, foreclosures, collections, etc. They are usually capped at 65% LTV or less. Because of high cost regulations and predatory lending, Hard Money Loans are for investment properties only – so if you’re looking for an owner-occupied property, this is not the loan for you. Some states have non-judicial foreclosure laws, which protect lenders and make them more comfortable doing these high-risk loans, as the money is not sold on the secondary market and the lender holds the note.

How can I acquire a Hard Money Loan?

Applying for a Hard Money Loan is a fast and easy process. First, find an investment property and reach out to a direct private money lender to assess your loan scenario. Direct private money lenders, such as the Nationwide Lender Stratton Equities, can provide a Hard Money Loan for the following property types:
  • Single-Family
  • Mixed-Use
  • Multi-Family
  • Commercial
After applying for a loan, the prospective borrower will work directly with a loan officers to discuss their real estate investment dreams and how a Hard Money Loan can help them achieve their goals. Apply today and close in two weeks or less!

Why should I work with a Hard Money Lender?

Working with a Hard Money Lender gives you the security needed to take on a high-risk loan. With companies like, Stratton Equities, they have years of experience in working with real estate investors to achieve their goals. Direct Private Money Lenders provide loan programs with less underwriting and less guidelines that close within 14 – 25 days.
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Stratton Equities is the leading Nationwide Direct Hard Money and NON-QM Lender that specializes in fast and flexible lending processes. The team is owned and operated by experienced Real Estate Investors providing a reliable and knowledgeable team to help all Real Estate investors succeed. For more information, call Stratton Equities at 800-962-6613, email us, or apply for loan pre-qualification today.

A Successful Hard Money Loan Depends on These 4 Things

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By Victoria Kennedy

Making money from real estate investing and becoming financially independent are goals for many people. There are always profitable opportunities – like fixing and flipping a property – that could generate considerable profit for an investor within a relatively short period of time, if executed quickly and effectively. When there’s a money-making real estate opportunity in front of you and you need some additional funds to make it happen, a hard money lender is the best place to turn.

These lenders are where seasoned real estate investors turn when they want to invest in multiple properties at once. They know that if they have 20% of the money required, the lender can provide the additional 80%. When those properties are successfully turned around, the investor reaps significant financial benefit. While many lenders promise the advantages of a hard money loan – a flexible process with quick approvals and closings as well as customized loan terms – not all lenders have the borrower’s best interests in mind or the ability to fulfill their promises. Going with the wrong lender could lead to an investor being unable to repay a loan and a seizure of collateral. That’s the last thing you want, and that’s the last thing a legitimate lender should want. Before securing a hard money loan for a real estate investment, you should follow these tips to find a lender whose goals are aligned with yours and will deliver what they say they will.

1. Know where the lender’s money comes from

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A direct hard money lender will be invested in your success. The lender uses their own funds and balance sheet to make loans. If a borrower defaults on a loan, it adversely affects the direct lender. Because their money is on the line, a direct lender will make sure to write loans on projects that make sense and that they believe the borrower is capable of executing. Other types of lenders, the ones that sell all of their loans to larger hedge funds or institutions, don’t keep any of the risk. Lenders who sell a loan also have less flexibility since they must underwrite to the end-buyers’ guidelines to ensure the loan is sellable. The underwriting process usually takes longer and depends on a third-party willing to buy the loan to close the deal. Most investors prefer using a direct balance-sheet lender because they feel they’re working with a real partner, one who can get their loan closed quickly.

2. Research the lender’s track record

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Anyone can write unsubstantiated glowing reviews about a business. It’s not uncommon for reviews on a company’s website to be forged, written by someone who has not used their service but still says positive things about the business. Look for legitimate direct testimonials on a company’s website that are verified. Verification is done by a third party – by companies such as YotPo or TurnTo – that ensure authenticity in the written review. You’ll get a good idea of a lender’s strengths and weaknesses if you read through the verified reviews – every one of them. After investigating online, ask other investors and service providers in the area if they’ve had experience with the lender.

3. Look for flexibility

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Image by Gerd Altmann from Pixabay

Experienced real estate investors know that flexibility in hard money loans is most common with a direct lender who isn’t restricted by someone else’s guidelines. The direct lender can look at the unique conditions of each project and write loans accordingly. Flexibility particularly comes from a lender who is structured so that investors are dealing directly with decision makers. Find out who in the organization will be underwriting your loan. Will you be dealing with a junior underwriting analyst who isn’t capable of making changes without going to management for permission? Or, will you be dealing with an underwriter who is a partner in the firm who has the power to make changes and exceptions?

4. Deal with someone familiar with your market

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Real estate investing is a “block by block” business. Depending on the city, the value of similar houses can vary as much as 20% in just a few blocks. You need to find a lender that’s an expert in your region’s market. Experts in the market will know if an investment has the potential to be successful. Take the time to ask the lender about similar projects in the area they’ve funded. Without revealing another investor’s private details, they should be able to tell you where they’ve seen projects like yours thrive. They may also be able to offer you tips on what not to do, based on their experiences with other clients. Doing the proper research can ensure you find a legitimate hard money lender and lead you to real estate investing success. Our direct hard money business is proud to do all we can to ensure the success of our borrowers. Asset Based Lending, LLC (ABL) is a private hard money lender that has been featured in the Scotsman Guide and Inc. magazine. Their mission is to help real estate investors to quickly and efficiently finance their business activities. They have funded over 3,000 loans for $650 million worth of volume for residential and mixed-use investment properties. Click here to find out more: https://www.abl1.net/
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Victoria Kennedy [email protected] atmanrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing and branding. She is the CEO of Atman Real Estate, a marketing & branding agency that is committed to helping top producing Real Estate professionals become the #1 Agents in their area. She is a highly in demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers, Inman News, and Yahoo Finance. In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally. In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music. She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business. Find out more here: atmanrealestate.com

Why the Most Important Partner in Your Real Estate Career Should Be Your Lender

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By Victoria Kennedy

As a real estate agent, you are only as good as the team that surrounds you. Whether it’s your attorney, broker, or title agent, one needs an entire group of experts right at their fingertips. However, if you are not already working with a private money lender, then you are missing out on a chance to greatly expand your client base to include real estate investors. By having a connection to a direct hard money lender that funds real estate investments, you can tap into an active market of home buyers and grow your real estate business further.

A dynamic real estate agent and private lender partnership provides a constant source of new business and referrals. It is a long line of endless possibilities for expanding both your careers.
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Image by Gerd Altmann from Pixabay

Another advantage to a strong partnership is the marketing support. Finding a lending partner who is willing to connect on marketing saves both time and money while expanding your reach. Mention your lender in your email campaigns, social media marketing and direct mail, and ask your partner to do the same. By co-branding, it provides an opportunity to streamline your marketing efforts. Once clients are secured, your combined knowledge can be harnessed to best serve your clients’ needs and deliver a five-star experience. You might be surprised to find that the best lending partner might not necessarily be the lender with the most experience or even the lowest rates. It might be the lender who shares the same core values and business goals. What exactly should you look for in a mortgage lending partner?

Trust.

Trust is one of the most important assets of your business. It begins with you, but extends to everyone you interact with, including your clients and lending partner. When we founded Asset Based Lending, we did so with a foundation of trust in our founding partners. As our company grew across 10 states and began funding more than 3,000 loans and $640 million worth of volume for residential and mixed-use commercial properties, it became more important than ever that we not only trusted each other but the experts we brought in to help our clients.
Business can only flourish when your clients have trust in you and the service you provide, so finding a hard money lender with a proven track record of trust and transparency is a must.

Communication.

Building a relationship, as well as maintaining that relationship, is done through open and honest communication. You need to find a lender who calls you back and returns emails quickly. Think about your needs when you are searching for the right partner. Do you work a lot of weekends and need someone who is willing to pre-approve clients on a Saturday or Sunday?
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Your clients also will feel more at ease with someone who is candid about the process and where they stand each step of the way. A hard money lender should be able to communicate with your clients about their loan requirements and needs. Agents and clients almost always come across a problem in a transaction, but expert communicators can mitigate any problems or fears to make for a smooth process. One thing we have learned during our years of business is no real estate loan is the same. Every single loan is different. You and your private lender must be able to listen to the client’s needs, understanding each of their stories to come up with a flexible solution.

Diversity.

There are several real estate loan options available, but not all lenders offer the type your clients might need. You need a hard money lender who offers the types of loans that match your client base.
They must be able to handle different and difficult loans to get your clients to the closing table. The type of lender who makes a good partner is willing to go above and beyond and has the resources to do so. Your clients will appreciate loan underwriting that matches their unique project and delivers financing quickly and efficiently.

Locality.

It can be very beneficial to partner with a local hard money lender. Not all real estate markets are the same and finding a lender who specializes in the local real estate that your client wants to invest in will pay dividends in the end. You want a private lender who knows the market because they differ drastically. For example, New York City has its own unique market regulations and requirements that private lenders need to be aware of to finalize a successful loan. Finding the right hard money lender is vital to the success of your career and properly serving your clients. You need to know your clients are in good hands with your lending partner for successful transactions and happy customers.
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Asset Based Lending, LLC (ABL) is a private commercial lender that has been featured in the Scotsman Guide, Inc. magazine, Yahoo Finance, NBC and FOX among other publications. Their mission is to help real estate investors, quickly and efficiently, finance their business activities. They have funded over 3,000 loans for $650 million worth of volume for residential and mixed-use commercial properties. Click here to find out more: https://www.abl1.net.
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Victoria Kennedy [email protected] atmanrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing and branding. She is the CEO of Atman Real Estate, a marketing & branding agency that is committed to helping top producing Real Estate professionals become the #1 Agents in their area. She is a highly in demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers, Inman News, and Yahoo Finance. In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally. In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music. She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business. Find out more here: atmanrealestate.com

3 Ways Mortgage Loan Officers Can Grow Leads Without Spending Money on Ads

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By Luke Shankula

The coronavirus pandemic has affected virtually every aspect of our daily lives, from schooling to socializing to business. Since lockdowns commenced nearly a year ago, I’ve had mortgage loan officers, long accustomed to building relationships and generating leads through in-person networking, asking me how they can generate new business.

Sure, spending money on advertising is one strategy. But in a brave new world where people are spending huge amounts of time online, my advice to loan officers is this: go social like you mean it. These are my top three ways that loan officers can grow leads organically—that is, without spending a dime.
  • Be strategic with social media engagement.
  • Create quality content that people want to consume.
  • Present yourself in a genuine manner—i.e., be the “real you.”

Choose your platforms strategically

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Unless you’ve got a monstrous amount of time to devote to social media or the budget to pay someone else to do it for you, it’s difficult to have a huge presence across several different platforms. Instead, I tell my clients to choose one, two, maybe three social media platforms, and get really good at using those. This comes down to researching which audiences you’ll reach on different platforms and honing in on those that can be the most fruitful. Here are just two examples of how I tell clients to use the many platforms out there:
  • LinkedIn: While LinkedIn isn’t exclusively a B2B platform, it is the place where you’re more likely to network with referral partners, such as real estate agents and other loan officers. It’s a great place for work-related content, but posting links to shared content will actually reduce your engagement here, since LinkedIn (and Facebook) wants to keep people in the site. Instead, create short, original posts that talk about your business. This doesn’t have to be “hard sell” stuff. Try posting video or screenshot testimonials from happy clients, or you celebrating closing a loan in record time. This is called “social proof”—it’s what establishes you as a leader in your field and attracts potential colleagues and referral partners. Also, be sure to congratulate colleagues who post about promotions or job change. But go beyond a simple “Well done!” with substantive, sincere praise. “Congratulations Jan! I’ve been following your career since we worked together at ___, and it’s no surprise you’ve been so successful.”
  • Facebook: If LinkedIn is your office, Facebook is your living room. Use your personal Facebook page—yep, that’s right; your personal page, as it’s amazingly difficult to generate organic traffic on a business page—to share your original content on mortgage news, career wins and challenges. Intersperse these with normal Facebook stuff, whether it’s family photos or funny animal videos. When you sprinkle in the work-related posts, always think about engagement: “The Fed is threatening to raise interest rates again: do you think it’s too soon for another rate hike?” Make your non-personal posts public so that they can be shared with anyone. Accept friend requests that don’t seem sketchy or stalkerish. And engage, engage, engage.

Create quality content

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I say it all the time and I’ll never stop saying it. When it comes to growing organic leads, it’s about quality, not quantity. Posting 60 pieces of shared content a day, regardless of the platform, is going to turn people off and make them reach for the dreaded “mute” button—and it might also get you flagged as a spammer. Instead, post original, quality, shareable content that people can use. Here are just a few ideas:
  • A short video (60-120 seconds is ideal) of you explaining how the mortgage pre-approval process works, or telling folks how they can improve their credit score
  • An attractive infographic showing the steps from loan application to closing
Remember, most first-time buyers—and a lot of second- or third-time buyers—have no clue how this stuff works. By creating content that explains the process, you establish yourself as an expert. Just don’t forget to add links to your email address and business website!

Just do you

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They say that all business is personal, and that’s truer now than ever before. There might have been a time when prospective loan applicants could choose from just a handful of loan officers. Now, there are more than 300,000 loan officers in the US, most of them reachable with the click of a mouse. So how do you stand out in a crowded field? Just by being you—and social media is the place to do it.
  • Be genuine. Share your kid’s stellar report card and your spouse’s new promotion just as readily as you do mortgage industry news. You’re a lot more than just your job, and your clients want to know that.
  • Engage actively, but naturally. Make a concerted effort to share and comment more on social, but don’t fake it. If you’re interested in a topic, try to generate lively discussion around it. If you’re happy for a friend or colleague’s positive news—express it!
  • I tell my colleagues to be themselves online and in-person, with one caveat: stay as apolitical as possible. Mortgage loans aren’t red or blue!
Building a social media presence that generates organic leads won’t happen overnight. It takes months, if not years, to create and curate quality content, build your followings and raise your profile. But when it all starts to click, it’s some of the most rewarding business you can land—and not just because it’s free. For loan officers, marketing and lead generation through social media enables you to really create a trusted brand. And the satisfaction of knowing you did it yourself, using your own initiative, creativity, and industry knowledge? That’s priceless.

Behind the Scenes: What it Means to Service a Loan

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Here at Ignite Funding we offer passive real estate investments that earn investors a 10%-12% annualized fixed income. All you have to do is choose an investment, fill-out some paperwork and send in your funds. Now you can sit back and enjoy your returns, but for Ignite Funding, the work carries on. Today we are giving you a behind the scenes look with Pat Vassar, Director of Underwriting, to see some of what Ignite Funding does in its daily operations to keep these investments passive for its investors.

For construction/development loans, do you visit the properties to see the borrowers progress in-person? How often?

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Image by Russell Holden from Pixabay

Carrie Cook (Ignite Funding’s President) and I visit each property on average once every four months. In a given year, we can service up to 100 projects, visiting each of those about four times (depends on the length of the loan) averages out to about 350 total site visits per year. At each site we are looking to make sure that the money is being used to enhance the value of the property, whether it’s for horizontal development, vertical construction, or both. We recently started sharing some of our videos* of these site visits with investors so they can see their funds in action and the value of their collateral increasing over time.

For acquisition projects and projects that do not involve physical/tangible changes to the property, how do you track that progress?

Just because you can’t physically see it, entitlement work and zoning permits add a tremendous amount of value to a property because they can sometimes take more time and effort than the actual development/construction of the project. We ask for updates on when the city or county planning commissions are scheduled, follow-up to see if plans were approved, and if so, what were the conditions. Usually when something is approved it is not unanimous. 99.9% of the time there are conditions, such as you have to add an offsite improvement like a traffic light or stop sign to a major intersection. We want to see what those conditions are because if they are onerous and cost a lot of money, it will devalue the site and we will need to pay attention to the viability of it in the future. With Ignite Funding’s strong development background, we can often help our borrowers troubleshoot these conditions to get the project back on good ground.
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Image by Gerd Altmann from Pixabay

Are you keeping track of the borrower’s financials even after their loans have been funded?

We receive quarterly financial updates from the borrower on both the special purpose LLCs that own the properties and the parent companies that run those LLCs. The funds provided for the projects flow in-and-out between both entities. Therefore, we keep close tabs on these reports to see if there is any instability happening internally with the borrower. If the borrower is working on a subdivision (property where they are selling multiple lots or homes), we also receive weekly reports on sales velocities to see how fast they are getting them under contract and ultimately closing. With this information we look to see how that corresponds with the underwriting we did before we originated the loan to see if we were on target and, more importantly, if the borrower is on target with their sales and traffic count predictions. We receive the borrower’s annual financial audits as well.

How often are you in communication with the borrowers?

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Image by Tumisu from Pixabay

Every day, whether it is on current or upcoming projects we are always in communication with the borrowers. We also visit each borrower’s parent company once a year. This is important because then we can see if they are adding staff or cutting back, and if it’s the same faces as before or if they have cleaned house. What’s observed at the in-person visits and in the annual financial audits are more indicative of the overall health of the company. With quarterly financials it is very easy for people to move money around to make it look like everything is great or status quo. This blog barely scratches the surface of everything Ignite Funding does for its investors and how it provides solid Trust Deed investment opportunities. For more information about Trust Deed investments or if you wish to schedule a FREE consultation with an Investment Representative, please click here.

Ignite Funding, LLC | 2140 E. Pebble Road, Suite 160, Las Vegas, NV 89123 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL #311 | AZ CMB-0932150 | Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents.

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