I thought since I hadn't posted here in a while, I would make a valuable contribution.

Over the past 9yrs I have touched about every sector of the real estate finance world, from simple "A-Paper" residential to Bank Debenture project funding in Hong Kong. Over that time, I learned what I call my COMFORT ZONE.

What is a COMFORT ZONE? In other words, it's a niche, but more, it's an area of your craft that you have found yourself driven towards passionately. I didn't set out 9yrs ago to specialize in what I call Trophy Residential loan funding, but it's where I ended up. It's an area of the sector that I feel most fits my personality and one that I personally shine in due to this. I can't say that this would be the Comfort Zone for everyone, as the clients tend to be a little more tedious and time consuming, often you will need to honeymoon them for months before they will trust you with their financials. Afterall, they have put a lot of work into getting where they're at, it's a wonder that their information ends up "in the broker email forward chains".

Todays enviroment for Trophy Residential loan funding ($2,000,000 and up loan amounts) is sparse at best. Banks don't want to lend money, much less millions of dollars of money against one candidate. So what does this leave us with? Well, particularly I have a network of 27 participants that are solicitated to "participate" in the funding of each loan. Oftentimes, it will take 5 or more of these participants to equal the amount of funds needed for an individual loan, and if the loan reaches over $10,000,000.00 dollars, there can be as many as 10 participants in the loan. This is all happening behind the scenes as the client will only see the "Lead participant" who retains the servicing rights. They are the 'bank' that will be sending out statements. There is no "shopping" as these are already participants for our platform. All that is needed is 1 single credit package to be put together accordingly which passes through an analyst, who has 40+yrs of banking/risk experience, who makes the decision. Each participant gives this analyst signatory authority of their funds. His job position, as you can imagine, is extremely scrutinized and his time is even more valuable. So, this means that I am responsible (if I want to keep my job) to sift through any possible detriments and present only the requests that hold merit.

For origination of of Trophy Loans, I have found it best to work directly with individuals already involved in the affairs of potential clients financials. Ie: Divorce attorneys, Accountants, Financial Advisors, City/State representatives. This is the most direct route to the clients I seek. Working with attorneys bears its own set of objections, but once you understand their language of choice, they can be a gold mine for referrals. Accountants and Financial Advisors are the easiest to work with, but you have to bring something unique as they are solicited very often.

So, now that I have the loan in my hands, the first thing I like to do is look the file over and, if I believe the request can be met, invite the client to meet face to face and discuss possible options. I don't get YSP for doing these loans, so often the topic of discussion will be the 30k, 50k, 300k that I will be charging for their loan and why it's of benefit to them to utilize my service. What I've found over time is although frugal, wealthy clients often understand the benefits of what I can offer. Those that don't, often end up calling me back at a later time.

Once we have agreed to terms and the credit analyst has signed off on the "pre-approval" we move into the approval process. The first step is a full credit approval. The documents needed for this are a full 3yrs of tax returns, all asset statements, a signed & certified current personal financial statement, a full and accurante 1003 loan application, a recent credit report, homeowners insurance information, a mortgage payment coupon with a copy of existing note, and any other related articles pertaining to a loan request. These other articles can stem from bankruptcy paperwork, divorce decrees, international passports, drivers license, credit authorization forms, etc... In order for the credit analyst to review this information in detail, a deposit fee is required. This is often a large obstacle to overcome as there are plenty of con-artists taking "advanced fees". To overcome this objection, I give the CLIENTS ONLY names and phone numbers of references along with the information for our closing agent. This is confidential information, so I do not give it out lightly.

So, now we're at the point where client has agreed to terms, deposit is in, credit approval has been given, and we're on our way to loan closing. A site inspection is required for ALL LOANS. Even loans done in Mexico or the Virgin Islands will require us to physically inspect the property. This is another fraud detection phase of the process. Once we are ready to prepare the loan documents, I will personally visit the property and deliver the documents.

Signing, 3 day right to recission, closing.

Sounds simple, right.

I'm not saying this is the niche for everyone, but this is what has been given to me. I wouldn't say I make more money because I do larger loan amounts, you have to consider that I do much less loans per year than someone originating, say, FHA purchase loans for ReMax. This is the reason I cherish my job as an Account Executive specializing in brokers FHA business. A steady paycheck will win out everytime, and if I had to choose one or the other, FHA Account Executive or Private Fund Representative for Mega Jumbo Residential, I would have to stick with my job as an AE. Afterall, I have a wife and child who mean more to me than anything else.

Hopefully this adds some insight into the mega jumbo loan market.