Risk Management

Mastering Back-Office Operations in Private Equity

By |2024-06-03T09:34:28-05:00June 12th, 2024|Operations|0 Comments

Implementing streamlined processes, leveraging technology, and prioritizing transparent communication elevate back-office operations to more efficiently and accurately serve a firm’s needs. In the fast-paced world of private lending, effective back-office administration is the backbone of a successful operation. For a private lender catering to diverse clients, mastering day-to-day tasks is crucial for sustained growth and [...]

By |2024-06-03T09:34:28-05:00June 12th, 2024|Operations|0 Comments

A Self-Servicing Portfolio Model

By |2024-05-20T10:56:18-05:00May 29th, 2024|Operations|0 Comments

In-house servicing requires infrastructure, relationships, and technology, but its rewards can outpace the risk. Many lenders have chosen to outsource their servicing function in an ever-complex lending environment. Maintaining your servicing function in-house, however, has many benefits and risks that must be managed carefully and cohesively to ensure a fluid relationship between the lender and [...]

By |2024-05-20T10:56:18-05:00May 29th, 2024|Operations|0 Comments

Comp Selection: Compliant Does Not Mean Good!

By |2024-04-15T12:22:15-05:00April 17th, 2024|Operations|0 Comments

If you’re using a traditional valuation product that relies on a subjective selection of three comparables, developing a quality control process that can help you better navigate the risk is worth the investment. Managing risk is a critical part of private lending. In this vein, it’s important to remember that compliant does not mean good. [...]

By |2024-04-15T12:22:15-05:00April 17th, 2024|Operations|0 Comments

Residential Pre-Foreclosure Auction Best Practices

By |2024-03-13T09:18:03-05:00March 13th, 2024|Operations|0 Comments

Although the pre-foreclosure acquisition path presents complexities and challenges, the rewards can be substantial for those who navigate it deftly. In today's residential market, potential sellers are on the sidelines, locked into low-interest-rate mortgages. With new loan rates pushing 8% nationally, those would-be sellers cannot trade up or move laterally for the same monthly out-of-pocket [...]

By |2024-03-13T09:18:03-05:00March 13th, 2024|Operations|0 Comments

Extending Your Lending Journey: Charting a Course that Includes Servicing

By |2024-03-13T09:18:17-05:00March 13th, 2024|Operations|0 Comments

The lending journey doesn't have to end with loan originations. With the right captain and procedures in place, you can board a bigger boat and sail profitably into servicing. Transforming your operations to run a loan servicing department successfully is not unlike the transformation of a small fishing boat into a mighty cargo ship. Both [...]

By |2024-03-13T09:18:17-05:00March 13th, 2024|Operations|0 Comments

5 Opportunities and Threats for Small Private Lenders

By |2023-12-19T09:46:30-06:00December 27th, 2023|Market|0 Comments

Even in a tight deal market, there are opportunities you can take advantage of; however, you must also be aware of their associated risks. Lenders, especially new and small lenders, must keep their eyes open for both opportunities and threats. Changing market conditions can bring good deals that nimble and niche lenders can take advantage [...]

By |2023-12-19T09:46:30-06:00December 27th, 2023|Market|0 Comments

Short-Term Rentals: Worth the Risk?

By |2023-12-11T12:28:55-06:00December 13th, 2023|Strategy|0 Comments

They can be, but thoroughly researching and understanding their financial, legal, and operational aspects is essential to avoiding loss. Are you considering investing in vacation rental properties, or are you a lender exploring options to expand a program for short-term rentals? With the travel industry on the rebound, now might be the perfect time to [...]

By |2023-12-11T12:28:55-06:00December 13th, 2023|Strategy|0 Comments

SFR Due Diligence and Risk

By |2023-10-30T14:18:24-05:00November 1st, 2023|Operations|0 Comments

Does your budget add up to your ARV? In residential private lending, we often say the asset is everything. When it comes to renovation loans, however, the truth is more complicated and includes the asset, the budget, the market/neighborhood, and the vision. At its core, renovating real estate has been proven to create value throughout [...]

By |2023-10-30T14:18:24-05:00November 1st, 2023|Operations|0 Comments

Disrupting Construction Risk Management

By |2023-07-19T07:54:43-05:00August 9th, 2023|Technology|0 Comments

Accurate and timely construction draw management is critical to mitigating risk for banks and lenders. Embracing the data available through new technologies will create a paradigm shift. Construction draws are the disbursement of funds from a bank or a lender for a construction project. The timing of the draws is based on predetermined milestones and [...]

By |2023-07-19T07:54:43-05:00August 9th, 2023|Technology|0 Comments

6 Ways to Push and Pull Loan Levers to Mitigate Risk

By |2022-09-27T11:01:25-05:00July 9th, 2022|Fundamentals|0 Comments

Just don’t forget that moving one lever impacts the entire project you’re funding. As a private lender, there are a lot of levers you can pull to mitigate risk, including changing terms to offset the risk of a loan. Remember, risk tolerance is less about a number and more about how you feel sleeping at [...]

By |2022-09-27T11:01:25-05:00July 9th, 2022|Fundamentals|0 Comments

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