FEATURED ARTICLE
TIPS FOR MORTGAGE INVESTORS TO GET MORE DEALS By Rocky Butani, Founder & CEO, Private Lender Link
I
ndividual and family office investors who invest their money into mortgages and trust
capital raising is a bit easier for fund
investors, but most loan originators
managers these days.
likely already have a solid network
deeds have likely been experiencing
You can’t blame loan originators for
yourself. Providing originators with
a lot of challenges with finding
exploring these other capital options.
a resume will show that you are
loans to fund over the past 5
The business model of using capital
serious, and it will also make your
years, but 2021 has turned out to
from
individual/family
life easier. Rather than having to
be one of the worst. The biggest
investors can be quite challenging
explain your investment criteria
competition for mortgage investors
and can stunt growth for private
over and over again, you can put
is institutional loan buyers that offer
lending operations. That said, there
loan originators cheaper capital
are still several private lending firms
everything in writing and send the same document to everyone.
and optimum efficiency. Mortgage
in the market that like the model of
investors had a small window of
working with individual investors,
hope in the Summer of 2020 while
and they have no interest in forming
the institutional capital paused for
a fund or selling loans to the Street.
of investors, and you have to sell
multiple
a few months, but now it’s back stronger than ever.
If you’re one of these mortgage investors who invests in individual
The events of 2020 pushed a lot
notes or trust deeds, there are still
of private lending companies to
many opportunities for you, but you
diversify
must put in some work to get more
their
capital
sources,
The resume should include 4 key components: Investment Criteria Make a list of everything a loan originator would ask you in order to send you deals - geographic areas, loan types, property types, min/max loan amount, max LTV, loan term,
deals from loan originators.
target yield, and much more.
mortgage funds and REITs have
TIP #1 - CREATE A RESUME
Transaction History
become more popular and widely
The idea of creating a resume may
Make a list of all the private
accepted by accredited investors, so
sound crazy to many mortgage
mortgage investments you’ve made
and many of them started a new mortgage
32
fund.
It
seems
like
