What strategies does Source Realty implement to exceed client expectations?

Our most popular loan product is our fix and flip bridge loan. These types loans are against properties that need some form of reconstruction. Because the property needs to be renovated, we “holdback” a portion of our loan for the renovation of the property. As our borrower’s complete renovations on the property, we release the amount of money based on construction draw. As you can imagine, releasing construction draws to our borrowers in a timely fashion is key to a successful deal, for both us. When we started pushing the growth of this product, we came up with a system that allows the borrowers to get the renovation capital in an extremely efficient manner, while also ensuring that work is completed in the proper fashion. Most of our borrowers are repeated clients, and I strongly believe that our construction draw system is one of the main reasons for that.

As a mortgage broking company, what made you specialize in commercial mortgages?

At Source Realty Capital, we focus solely on non-owner-occupied properties. As well we mainly focus on commercial mortgages because our borrowers are legal entities and not individuals. However, we only finance residential properties, either 1–4-member family properties or small family properties.  Though 1-4-member family property is typically not considered to be a “commercial property”, since, the property is entitled as entity, our loans are considered to be commercial mortgages. All of our borrowers have to produce the Business Purpose affidavits stating that the property will not be used for a personal residence. 

There are multiple reasons why we only provide commercial mortgages. One of among the main reason is the regulations, terms and conditions are quite simple than getting a loan for residential loan. Lending on owner-occupied residentials properties requires licensing in every state. Additionally, commercial properties are much easier for foreclosure.

How has your company adapted to the rapid increase in interest rates since 2022?

The rapid rise in interest rates starting in 2022 had our industry on edge. The speed of the increase in rates was unprecedented, so it was hard to prepare for. It was challenging a situation because we had to both increase our rates to our borrowers, while also lowering the leverage across all our loan products. That combination was a very tough sell with our borrowers! We had to be cautious during that time and assume that the higher rates would reduce the value of our collateral. Luckily, asset prices didn’t fall as much as expected and we’ve seemed to hit peak short-term rates.

What inspires you and helps you stay ahead of other competitors in day-to-day life?

Naturally, I am a competitive person. When I see a competitor doing something better than us, I always as myself “why can’t we do that?” and I put it onus on me to drive the team to do better. I don’t make excuses as to why we can’t be better. I’ve learned to embrace competition. It keeps us on our toes and improves the industry for everyone- lenders and borrowers.

Share your professional experience that helped you reach your current position in a short span.

Every deal I’ve closed and changes I’ve delt with has shaped me for this position. From being a freelancer to leading an organization. I believe in commitment and simple understanding the competitions in the market can help anyone to reach their dream position, only thing is you should make a smart move by making things simple and understandable to your target audience, I applied it through my professional experience and as well through my educational background that clearly slated me to reach this position in real estate finance industry.

Finally, what advice would you give to young aspiring entrepreneurs? What qualities should they carry forever?

For a young entrepreneur to succeed they need to have grit and be able to keep pushing forward. No matter what business you’re looking to start, you will have many ups and downs. If you can’t push forward when things get hard, you’ll fail for sure. It wasn’t always easy building Source Realty Capital, and you must be able to push through all your hard times. 

I can remember back in 2022, when interest rates were increasing at an unpredicted rate to combat inflation. This was a super tough time in our industry. We lost a major counterparty during that time and our future was uncertain. However, we pushed through as a team and came out much stronger. 

 “Source Realty Capital is a full-service commercial mortgage banking company that arranges permanent, bridge, mezzanine and construction loans.”

 “Source Realty Capital focuses solely on non-owner-occupied properties, providing tailored solutions for commercial mortgages.”

 “Competition keeps us on our toes and drives innovation in the industry.”

 All our deals at that time were either “table funded” or just brokered