In my niche of lending to investors in single family residences and 2-4 unit properties, there are a few different types of borrowers. They can be segmented based on the type and volume of deals they do.
Typical deal types are:
- Fix and Flips
- BRRR Deals –buy, renovate, re-lease and refinance
- Existing Rental Loans–a loan against an existing rental property
There are also niche deal types but I won’t focus on them today
The volume of deals a borrower does also has a big impact on whether or not I’m likely to lend to them.
Simply put, borrowers that borrow hard money every month aren’t as likely to be my clients given our existing model. They place a premium on finding hard money lenders that compete on price.
Our bread and butter borrower needs hard money less often and values surety (our access to and control of capital) and speed (better experience, fewer docs, fewer touch points for a borrower) of close above all else. Therefore, my job is to improve this value proposition, day by day, week by week, month by month.
Recent Comments