"The thing about investors is that they continue to invest," says mortgage CEO
Jeffrey Weller (pictured), CEO of Coast2Coast Mortgage, has built a thriving business by embracing the ever-evolving landscape of real estate lending, particularly in the Southeast US. Over the years, he’s witnessed significant shifts in demand, notably among investors.
“We’ve seen a huge increase in the non-QM [non-qualified mortgage] market, specifically in the investor marketplace,” Weller explained. “My personal volume of loans has gone almost 100% into the investor marketplace, the DSCR marketplace.”
And, despite co-owning a mortgage company with over 220 loan officers, Weller still finds time to originate loans and has built a team to help him with a very unique focus.
His pivot has been largely driven by two key products: DSCR (Debt Service Coverage Ratio) loans and fix-and-flip loan programs. While Coast2Coast as a company continues to close conventional loans, Weller has tailored his personal focus toward investment-focused products.
“The DSCR and fix-and-flip loans have become the main staples of my core business,” he said. “My personal focus has really been on small commercial balance loans, apartment buildings, small mixed-use buildings, and investment properties.”
His decision to concentrate on investors is deeply personal. “The thing about investors is that they continue to invest,” Weller noted. “They’ll do three or four loans a year with you, or sometimes more.” As an investor himself, Weller understands the unique challenges and opportunities that his clients face.
“I work mostly with professional investors because I talk the same talk they do,” he said. “When they tell me about the great deal they got, I’m cheering them on and giving them alternative ideas to get their financing done.”
PadSplit approach
Weller’s hands-on experience as a real estate investor—owning numerous properties—has earned him credibility in the industry.
“I’m one of the people who practices what I preach,” he explained. “I have over 100 PadSplit rooms that I rent out - not many investors have this many co-living room rentals.”
This focus on innovative solutions like PadSplit has been transformative for Weller’s business. The PadSplit model enables landlords to rent out properties room by room for longer stays, typically six to 10 months – but sometimes even years.
“It’s a platform like Airbnb, but you’re renting out rooms long-term,” Weller said. This model addresses a growing need for affordable housing, allowing members to pay weekly and avoid hefty upfront costs like first and last month’s rent. “Padsplit is helping solve one of the nation’s largest housing crises in unaffordable rental housing, and I am thankful to be able to help them in their mission, because they really do make a difference in people’s lives,” he said.
“This is more than 50% of my personal business right now,” Weller shared. “It’s such a niche product that very few lenders, if any, have a product for it, and we do.”
For landlords, this means a unique financing opportunity that other lenders simply don’t provide. Weller highlighted the market’s response: “The leads we are working are so good... it’s not a matter of, ‘Can they qualify?’ It’s a matter of, ‘How fast can they find a house?’” Obviously there are qualification requirements, but it is our job to make it as quick and easy as possible.
Word-of-mouth referrals have become a driving force for Coast2Coast’s growth in this area.
“My reputation speaks volumes in the PadSplit community,” Weller said. “The people who run PadSplit are incredibly loyal. They promote us because they know we have a product that will help their investor homeowner clients.”
Becoming a trusted advisor
Beyond his expertise in niche loan products, Weller has positioned himself as a trusted advisor within the investor community.
“When I go to real estate events, I’m not just there to promote loans,” he explained. “I’m there to help investors with creative solutions, whether that’s coming up with down payment money or offering tips on leveraging business credit. When you’re on a panel or giving a talk, you tend to get a lot of business because you’ve built that trust.”
Despite the regional focus on markets like Florida, Georgia, and Texas, Coast2Coast’s reach spans nearly 44 states. “We’re seeing a lot of movement in Arizona, Florida, Georgia, and Texas,” Weller added. But regardless of location, his approach remains the same: offer tailored solutions that address the specific needs of investors.
Weller sees both opportunities and challenges in the evolving mortgage landscape. Inflation, rising interest rates, and shifting regulations all play a role in shaping market demand. However, Weller’s adaptability - exemplified by his embrace of innovative products like PadSplit - positions him to navigate these challenges effectively. “You have to focus on the area where you can provide the most value,” he said. “For me, that’s the investor market.”
This commitment to specialization has allowed Weller to build a business that thrives on repeat clients and niche demand. By leveraging his own experience as an investor and offering unique products, Weller has not only grown his business but also solidified his reputation as a leader in the industry. “Investors need someone who understands their world,” he said. “That’s what we provide.”
