My Perspective

Most of you, if not all, are aware of my efforts to secure a $2 Million Equity Partner/Investor for a mortgage lending platform that intersects consumer need with a substantial profit opportunity. I have spent the majority of the last five (5) months doing something that my long, experienced Portfolio Lender/Mortgage Banker-Servicer background has ill-prepared me to deal with – finding such an investor or finding someone who wants to earn a fee to help me find one.

This journey began as I perceived some initial indications of a positive economic recovery. During those five (5) months, I have watched as the stock market has gone from approximately 6,600 to 10,000. I have seen industry news articles segue from describing the housing and mortgage business as moribund – to flat – to rebounding off the bottom. From palpable panic over scant sources of warehouse facilities, I have witnessed several old and new sources enter or re-enter that market. While perhaps not equaling the number of facilities once available, it appears that financial organizations seem happy and willing to provide warehouse lines to companies with solid management.

Many of the folks I have spoken with, unfortunately, have only one housing/mortgage cycle under their belts, and/or seem to lack forward thinking ability. Initially, the problem of warehouse lending was the primary reason for rejecting the opportunity. Then came such short-sighted remarks, to wit, “… we’re scared of anything but Agency paper, Peter… there’s no liquidity…”, as if they couldn’t image there are literally hundreds of mid-sized banks and thrifts dreaming of getting back in (or entering) the mortgage business; and they couldn’t envision a renewed securities market with a return to a near normalcy in the not too distant future.

So, to conform to that skepticism (whether wrong-headed, as I believe, or not), I recently completely rewrote my business plan and cash flow pro forma to include the more popular FHA & Conforming loan products, stipulating that the roll out of the more profitable non-agency product would occur only when there are multiple secondary market exit strategies for same. Frankly, I expected a robust, positive reaction. However, all I’ve seen so far is a luke-warm uptick in interest.

I have seen industry news pieces in the past 60 days about a handful of mortgage veterans attracting investment capital and getting back into business. It is rather disheartening when I look at their experience and background which – not meaning to boast – is far inferior to my own.

I’ve shut down my mortgage professional educational & training facility (www.americanmoneycenter.com) so I could devote my efforts full time to this endeavor. I’m becoming more and more concerned that I’m about to start hearing the ever-dreaded “after the first of the year” stall, and that’s going to drive me to scream.

Once again, I would like to stress that the sooner we are up and running, the better. Every week of delay is another week the competition is maturing their own launch. The non-agency market WILL return. Those who are ready and poised to capture a substantial piece of this enormous market will garner significant profits.

In closing, I’m reminded of two old sayings; “Fortune favors the brave” and “He who hesitates is lost.”

Is ANYONE listening? If so, I implore you to earn yourself a big, fat fee by sourcing an investor looking for a tremendous ROI. It is NOT an *if*… or even a *when*… but *WHO* … my team and I …We are who!

I want us to get on with it, and head for the finish line; neither of us has the time for an e-mail pen pal, right? Please call me so we can get movin’.

Many of you know, I’ve been putting together a Next Generation Subprime wholesale lending operation these past few months; raising the initial $2 Million equity capital from a potential investor/partner has been challenging to say the least during these uncertain financial times.

Given the liquidity difficulties in the subprime secondary market, and today’s fashionable alternatives of FHA and Conforming loan products which have become ubiquitous, it has become necessary to modify our singular vision and offer the broader range of lending alternatives to fit the range of applicants the company’s future loan broker customers are seeing today.

Once the capital acquisition has been achieved, we will immediately develop a series of related subsidiaries due to the synergizes and quality control of those firms: (the engine which will drive the entire organization) an FHA, ‘Next Generation’ Subprime & Conforming nationwide wholesale residential real estate mortgage lending subsidiary, a public escrow company, a mortgage servicing operation, an equipment finance lease subsidiary, an insurance agency, a mortgage professional educational & training facility, and at IPO (3 or four years down-stream) an FDIC insured national commercial Bank.

At the end of this adventure into the capital raising sector of Wall Street, we’ll have a solid and well position organization which will stand the test of time and one both our customers and employees will be proud to be a part of.

The four (4) month anniversary passed this past week, that’s right it’s been a short 135+ days in a row which I have been smashing my head into a brick wall trying to find a $2 Million dollar equity partner/investor for my new ‘Next-Generaltion Subprime’ Wholesale Lender venture. That’s right all day morning ’till night, every single day working to locate the $$$$.

Ok then, what sort of results have I accomplished? Well, for one thing, I know more than YOU! As of this morning, I know exactly 1,000 things that don’t work. So … if you were to try and raise $2 Million in these interesting financial times for such a venture, you’re gonna make those 1,000 mistakes too – like I already have. Therefore, I am fairly happy that I have learned those lessons … however now that reality has “taught me a lesson” I’m finally ready to hammer the check :-}