"Now's the time… Just start small and put a couple of products into the mix"
The refinance boom in 2021 has brought in new business for conventional brokers and originators as borrowers taking advantage of low rates showed greater interest in investment loans. MPA recently spoke with Jeffrey Tesch, CEO of RCN Capital, and Ben Shaevitz, SVP of Wholesale Lending at Civic Financial, about the opportunities in the private lending space and how mortgage professionals can capture some of this volume this 2022.
"I would say the majority of the brokers in the US are not just in the private money space – they're doing private money residential, they're doing commercial deals. They're doing conventional, Fannie Freddie stuff," Shaevitz said. "I mean, why wouldn't you want all the products available at your fingertips? If not, you're leaving money on the table."
Read more: CIVIC unveils rental program for investors
"I will guarantee you that the majority of folks on this call today at some point have had an investor come to their office or reach out to one of your team members and say, 'Hey, I'm buying a house to rent out. Do you guys have a program for that?' Sometimes the answer is yes. Sometimes it's no," Tesch said.
"Well, as of today, that should be absolutely moving forward. None of these liens should be thrown out. And they should be at least looking to add the bare minimum to their product offerings."
Read more: Finding the smart money in private lending this year
Tesch also noted that customers reported seeing greater returns on their long-term rental investments.
"We've seen a tremendous shift in our customer base," he said. "The folks that were buying, fixing and selling, well, they're beginning to realize that that model, while profitable, is not nearly as profitable as buy, fix and hold for rent, or just straight up hold for rent.
“And this year, as of last month, we are now 65% rental so it’s completely flipped on its head, yet we're busier than ever. So, it just really talks about the state of the marketplace and how investors are not only betting on the short term, they're betting on the long term."
You can learn more about the investment loan portfolio sector and how to start building a pipeline in this space by watching the rest of the interview here: How to grow prospects now and into 2022.
