Correspondent Lending: A New Opportunity for Direct Lenders

While last year’s coronavirus pandemic disrupted businesses across the nation, including the real estate sector, Sharestates has responded with expansion efforts. Last November we announced the hiring of a chief strategy and growth officer to oversee two new programs. In September, we added a new board member, fintech veteran Rayman Mathoda, and hired a chief financial officer, Tina DelDonna. Last month, we announced the hiring of several sales team leaders to further advance these expansion efforts. After putting the right people in the right positions, we’re ready to roll out new initiatives that will enhance investor and borrower experience and lead to new partnerships.

One of those new initiatives includes a partnership where we offer direct lenders across the U.S. an opportunity to partner with Sharestates in a correspondent lending program designed just for them.

Correspondent Lending: The Benefits of White Labeling for Direct Lenders

Sharestates wants to partner with two classes of direct lenders across the U.S.

  1. Private hard money lenders
  2. High-volume brokers

We realize that many small lenders could issue more loans and service more customers if they could leverage more capital, more human resources, and better technology. Sharestates has all three. To that end, the benefits of partnering with Sharestates as a white label correspondent lender falls into four broad categories:

Leveraged Capital

 As a correspondent lender and Sharestates partner, you can issue loans without putting up the capital. You submit your loan application through our platform and, if approved, you can leverage our capital to underwrite the loan. This allows you to fund loans that you may not otherwise fund because you don’t have the funds or are experiencing cash flow constraints. By leveraging Sharestates’ capital, you can scale as you fund more loans, expand your offerings, and grow your business.

Geography

 As a correspondent lender, you can expand your business geographically. If your business is in Texas, for instance, and you receive a fair number of loan applications from Florida, you can issue loans outside of your normal geographic boundaries while expanding your loan offerings and growing your lending business. Instead of referring those potential loans to other lenders, you can originate them under your brand name and leverage Sharestates’ underwriting and servicing resources.

Human Resources

 As a correspondent lender, you’ll have access to the full scope of the Sharestates team. Small lenders are often challenged by small teams as much as by less capital. Through our correspondent program, you’ll have direct access to our expert real estate and finance pros as you scale your business geographically and economically.

Technology

 In the information age, if you can’t leverage the latest technological advances, you’ll be left behind. Direct lenders can scale more effectively and efficiently with the right technology. Sharestates has a proven technology stack. We’ve received more than 20,000 loan applications and have issued more than 3,000 loans in 36 states for a total loan volume of over $3 billion. By leveraging our technology, you can issue more loans more efficiently, more quickly, and more profitably.

1031 exchangeSharestates’ correspondent lending program is the perfect opportunity for small direct lenders who want to scale their businesses and grow with one of the most experienced real estate lending platforms in the country.

 

Leverage Sharestates’ Experience, Resources, and Capital at No Cost to You

Sharestates’ white-label lending service is designed for direct lenders who are ready to scale their businesses but who are constrained by their internal resources. By leveraging a larger lender’s resources, you can scale your business in several ways:

  • Issue more loans
  • Offer more types of loan programs
  • Underwrite larger loans
  • Expand into new geographic areas
  • Optimize your underwriting practices with a proven partner

And you can do all this risk-free, without tapping into your capital resources, by leveraging a technology stack beyond your walls and utilizing human and business resources previously unavailable to you.

The white label program operates under table funding rules allowing you to issue all loans under your name. Because it is white labeled, your brand gets the recognition while Sharestates stays in the background. You’ll gain access to our capital pool of more than $5 billion. And you maintain control over your customer list while managing your customer relationships. Sharestates handles the technology and the underwriting.

As a direct lender in business since 2013, Sharestates has the infrastructure in place to process and underwrite loans, fund the loans with our capital, and provide support with our staff and business partners in any geographical location in the U.S. We are more than capable of filling the gaps in your business model or funding capabilities. Our service is customized and tailored to your individual needs allowing you to scale the way you want to scale.

Sharestates’ white label program is ideally suited to direct lenders and private money brokers with a track record of two years or more, originating at least $1 million in loans each month, and who have an errors and omissions insurance policy coverage of $1 million.

There is no cost to join Sharestates white label correspondent lending program.

Get Started Today as a Direct Lending Partner

  • Sharestates presents a strategic opportunity for local brokers to expand their businesses in several ways. Brokers working with Sharestates can offer a variety of different lending options to current and future customers. These include:
  • Bridge loans
  • Mid-term loans
  • Residential long-term loans
  • Jumbo bridge loans
  • Portfolio mid-term loans

Plus, when we roll out new loan products, you could have an opportunity to expand your loan offerings under your brand name.

Sharestates has a proven track record of issuing residential real estate loans and multifamily and mixed-use real estate loans. Max loan to value is typically 80 percent for purchasing and 70 percent to 75 percent for financing. We can also handle construction financing up to 90 percent. Finance rates start at 6.95 percent for residential and 7.95 percent for mixed-use and multifamily loans. Our typical loan sizes range from $100,000 to $10 million.

Sharestates’ partnership programs are managed by Vice President of Correspondent and Strategic Partnerships, David Young. Lenders working with Sharestates will receive full staff support from Young and his team, who are equipped and ready to assist you in originating new deals, pricing the deals, getting borrower commitments, and more.

After a loan has been issued, Sharestates’ partners will receive full support from Sharestates’ fulfillment staff.

To learn more about Sharestates and how you can expand your lending business, contact David Young at dyoung@sharestates.com.