Transparency remains one of the many aspects I enjoy in the Hard Money Loan and Trust Deed Investment Marketplace. In some recent reading, I read a Quote, “To Be Unclear is to be Unkind”. I wanted to spend a few moments to delve into this Quote to clarify exactly what we at Mortgage Vintage (MVI) and CrowdTrustDeed (CTD) do and sometimes more importantly, don’t do for Stakeholders.
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:
- Simple: This simple business model creates an understandable, transparent and limited friction environment.
- 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.
- 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.
- Constant Improvement: MVI strives to listen, iterate and improve across all elements of the business
Brokers: The Borrower principles below apply to Brokers however, we also adhere to the following:
- 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.
- Fast and Professional: Swift answers even if the answer is No
- Relationships: We understand that Brokers have the direct relationship with the Borrower and we respect those hard-earned alliances.
Borrowers: Private Money-Smart Lending
- Pricing: Quote = Terms, no bait and switch
- Timeliness: Same Day Term sheets and closing within 7-10 days
- 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
- Conditions Management: Due diligence items required from the borrower are mentioned up-front
- 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.
- Sold Rate = Lender Yield. No games or hidden fees. We pay all servicing fees so the Lender ends up with promised yield = net yield.
- Transparency: MVI and CTD provide online 24/7 access to our Due Diligence File
- Valuations: Independent 3rd Party Valuations are paramount
- What You See is What You Get: Online-Realtime listings allow for Lenders to pledge on available Trust Deeds
- Your Trusted Crowd: CTD communicates with every Registered Users to eliminate “bad actors”