Mortgage Vintage Business Model:
Mortgage Vintage and CrowdTrustDeed efficiently connect lenders desiring high yield current income returns on equity protected California Real Estate with qualified business purpose borrowers and real estate investors who want a fast and professional equity-based loan:
1. Simple: This simple business model creates an understandable, transparent and limited friction environment.
2. Collateral: The Collateral is the real estate. No borrower dependent notes, no company intermediaries. The beneficiaries of the loan are on the Deed of Trust. Period.
3. Mutual Respect: Treat everyone with respect. Borrowers: Give them the straight scoop and a swift answer, Lenders: Don’t waste their time by having them evaluate Trust Deeds that may not be available.
4. Constant Improvement: MVI strives to listen, iterate and improve across all elements of the business
- If you would lend, we would lend
- We personally or our representative examines each property
- We evaluate loan to value ratios, exit strategies and ability to pay
- We carefully screen borrowers
- Thorough and streamlined processing and due diligence
- We would rather turn down a loan than have a foreclosure
- Dedicated to paying the highest yield possible with the lowest risk
- Preservation of Capital is paramount
- Provide Full transparency throughout the origination, processing, funding, servicing and payoff of the loan
- We get as close to the borrower and investor as possible to minimize transaction costs
- We strive to reduce costs for the investor while maintaining the highest standards of service and professionalism
In addition for each of our stakeholders we offer the following:
Brokers: The Borrower principles below apply to Brokers however, we also adhere to the following:
1. Purpose: MVI only does one thing. Hard Money. We don’t compete with our consumer lending Broker partners on their owner-occupied loans or on the take-out loans from our bridge hard money loans.
2. Fast and Professional: Swift answers even if the answer is No
3. Relationships: We understand that Brokers have the direct relationship with the Borrower and we respect those hard-earned alliances.
Borrowers: Private Money-Smart Lending
1. Pricing: Quote = Terms, no bait and switch
2. Timeliness: Same Day Term sheets and closing within 7-10 days
3. Surety of Funding: MVI always mention that we must raise the required money for the Trust Deed through the CTD Marketplace. However, as it turns out, CTD provides a surety of funding not easily replicable by other Hard Money Lenders
4. Conditions Management: Due diligence items required from the borrower are mentioned up-front
5. Just the Truth: I recently experienced where the reality was different from what I was being told. We were getting paid off on a loan when the new lender mentioned that “they had the money to pay us off”. Well, that lender did not have the money and the loan has not been paid off. We make sure we give the straight scoop all the time.
Lenders: We Would Lend if Lou Would Lend is one of our mantra’s. The other mantra is that MVI and CTD will not sell a loan that we would not participate in ourselves.
1. Sold Rate = Lender Yield. No games or hidden fees. We pay all servicing fees so the Lender ends up with promised yield = net yield.
2. Transparency: MVI and CTD provide online 24/7 access to our Due Diligence File
3. Valuations: Independent 3rd Party Valuations are paramount
4. What You See is What You Get: Online-Realtime listings allow for Lenders to pledge on available Trust Deeds
5. Your Trusted Crowd: CTD communicates with every Registered Users to eliminate “bad actors”
Keep It Simple
At Mortgage Vintage we use our background in technology, software, and process engineering to keep things simple. Life and transactions get complicated enough. We don’t need to add complexity.
We need to know a few simple facts about 3 things:
- The Property
- Purchase Price
- Date Purchased
- Today’s Price
- The People (borrowing the money)
- Who are they
- Why are they borrowing?
- How will they make the monthly payments?
- How do they plan to repay the loan?
- The Loan
- How much did they own?
- What is today’s balance?
- Tomorrows balance, how much do they want to borrow?