Think-Realty-Magazine-January-2020

Rehab to Rental Take It Down... Bridge The Gap Build Wealth No Bait and Switch, No Teaser Rates, No Catch.

ENGAGEMENT

LENDING

Need a No-Money Down Fix-And-Flip Funding Solution? Need time to season your flip to lock-in the a long-term rate? Are you trying to build wealth through your rental portfolio?

Wrangling the Stray

COMMUNICATION IS KEY FOR BORROWERS AND LENDERS.

LET US HELP!

by Paul Jackson, Residential Capital Partners

I

n the cattle business, you spend most of your time working the herd to ensure it is well-fed, well-groomed and well on its way to market. You spend less time tending to that one hard-head- ed stray that wanders off from the herd. However, tending to that one stray and wrangling it back in is how you maximize your profits. It’s the same in the lending busi- ness. You spend most of your time processing, approving, and ser- vicing the good guys — those who remain with the herd. But, what do you with the stray borrower who is struggling with a stray deal? How do you keep them engaged with you, the lender? How do you bring them back into compliance? How do you keep them current on payments? How do you clear them out and get repaid? Consider these thoughts as you work your troubled loans back to the barn.

has never been easier. Text, email, instant message — these are all good channels for exchanging infor- mation. But, with a stray borrower, there is nothing more powerful than the ole Alexander Graham Bell telephone. The phone allows you to hear the sincerity, the stress, the soundness of the game plan or lack thereof. More importantly, it allows your borrower to hear your voice, your sincerity of working it out with them, and your entrepreneurial thinking to work out of a bad deal. Wrangling your stray means know- ing where it is and working it back in with your cutting horse. In a stray deal, the lender needs to have boots on the ground to assess the condition of the property. Is it retail ready? Has it been touched at all? How much work is left to be done? What is the remaining budget until substantial completion? The lender needs to have a trustworthy source or team mem- ber on the ground answering these questions. The good-hearted nature ON-THE-GROUND INFORMATION

of a contractor can quickly turn to stone when answering the phone of a distressed lender with a distressed deal in a faraway city. The lender must get on the ground. ACCELERATION Once the stray knows your voice and your position, you must be willing to use your lasso if it’s not going to budge. The lasso of acceleration (read: foreclosure proceeding paperwork) is your tool. It is no fun to wrangle in a stubborn stray kicking and screaming, but there is no better way to get the attention of a headstrong stray than the fear of loss. Foreclosure means no profit for the borrower. Do we want to be in this position as a lender? No! Will we take the step if push comes to shove? Yes! As the cowboy ballad of Git Along Little Dogies goes: “Whoopie ti yi yo, git along little dogies. It’s your misfortune and none of my own.” • Residential Capital Partners, headquartered in Dallas, TX, is a leading private lender with a national scope and a local presence in each market it serves. Residential Capital Partners helps its clients fund their rehabs and rentals better, faster and smarter.

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• 100% Funding Up to 70% ARV • 10% Interest • 3 Points Rolled In • 9-Month Term • 100% Funding Up to 70% ARV • 9% Interest • 2 Points Rolled In • 12-Month Term TAKE IT DOWN BRIDGE THE GAP

BUILD WEALTH

• Up to 85% LTV • Rates Starting @ 6.25% • 1.0x DSCR • 5/1 ARM to 30-Year Fixed • 2 Points Paid At Closing

Your business is building wealth through real estate. Our business is providing efficient capital to help fund your rental portfolio. We can help you take it down, bridge the gap and build long-term wealth in your rental portfolio! Contact us today!

APPLY NOW: (866) 441-0223

rental@rescappartners.com www.rescappartners.com

COMMUNICATION In all relationships, communi- cation is paramount. And in this information age, communication

RESIDENTIAL CAPITAL PARTNERS

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