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Communication is key!

Bill Cavanaugh


Has anyone ever started talking to “new-to-you” lenders or borrowers just to be ghosted when asking for more details? How does that make you feel? does it instill a sense of security and confidence? Does it make you question the professionalism of the other party? Does it make you wonder what they are hiding?

As a PML using our own funds for deals, we do not always have fund available, we usually will start looking a month or so before a current loan matures so that we are able to deploy the returned funds soon after.

We have cultivated several relationships with borrowers but are always looking for new friends and investors to work with because the money and deal timing is not always in sync. This is one of the main reasons I love PMC. It allows my wife and i access to deals and investors looking for funds when we have the funds available and through this forum and networking events we get to meet and know borrowers from around the country. We enjoy the diversification of lending in other markets on other types of deals.

I recently have spent a few months talking with an active investor that we had hoped to be doing business with.

The post was well done but included no actual details of the deals. It was basically a flyer/ landing page and sales pitch. The deal looked awesome. The Interest rate they were looking for was slightly out of our box, but for a 1st deal with a new borrower, it was enough to start the relationship.

However, when i started asking for more details on the deal- home values, the current mortgage amount, current or expected rents rolls, operating and expected renovating expenses- in an effort to get a ball park figure to come up with some sort of LTV, DSCR, and NOI. Which are what i need to determine if my money will be safe and eventually returned, I got ghosted.

I reached out after a week of no response in the hopes that it was simply a mistake and my email got lost (as they sometimes do) in a busy and full inbox or even worse straight to SPAM. Either way it has colored my feelings about working with them.

If you are a borrower on PMC you also have access to a lot of people looking to invest in your projects. I get that. PMC has given us all the opportunity to live in abundance and have many opportunities not available at local REI groups.

It often feels that active investors feel that their deals are more valuable than my money and that they are doing me a favor by using my money. I have also heard many borrowers quote Chris when he talks about the golden rule. “He that has the gold, makes the rules”

There is a middle ground. Finding it is negotiation. We need each other. and if not, we can both find someone else.

But whether you are borrowing or lending communication is key! Even if it is “No. that does not work for me.” Just disappearing and not following through looks suspicious, to me, and will require more effort on the other party to bring me back to the table.

just sharing this and wanted to hear from others about what they are seeing/ experiencing.