It seems like once you reach the age of twenty-one (or twenty-two if you’re into T-Swift), you stop looking forward to birthdays. That’s certainly not the case here at Seattle Funding Group.
We are about to celebrate 28 years of excellence, and we couldn’t be happier! However, most of us know it’s not always clear skies (especially now in the PNW) when doing business.
Success is almost always preceded by failure, but choosing to learn from failure is what will lead you to that inevitable celebratory Cupcake Royale box packed with, you guessed it…28 exotic flavors.
We thought we’d share ten (2+8) invaluable lessons we have learned along the way. In no particular order, they are:
- Location of a securing property has the largest effect, is unchangeable, and therefore primary.
- With location, be very specific when analyzing the site and comparable sites.
- Always make sure the borrower will profit. Even if the lender is well protected, it does not always mean the borrower is!
- Know when to say ‘no.’ Builders will often build, regardless of its economic sense.
- Limit the amount of loans in outlying areas. We strongly believe in the saying, “the pond always dries from the edges in.”
- Know how long the “sales line” is for the securing property. Make compensating adjustments to your underwriting and loan amount to ensure a quick sale at a price that will be sufficient to cover your investment.
- Divesting a 100% of a borrower’s capital out of a deal is a recipe for disaster. Borrowers who leave cash in the transaction tend to make smarter decisions.
- Be cautious with land. Oceanfront land in La Jolla, CA is much different than desert land in Wilcox, AZ.
- Use the whole team to evaluate every angle. Challenging one another constructively leads to smarter, more thorough decisions!
- Build lasting relationships, and keep up positive, to-the-point, and frequent communication.
