What a difference nine months and four FED hikes can make. Suddenly, great deals can look “iffy,” small challenges can feel overwhelming and decision-making turns uber-cautious. Clearly, real estate investing is at an inflection point, but what’s ahead? Is a recession looming, or are we entering a new state of normal, where prices moderate once the FED is done fighting inflation? One thing is for certain, a lot of confidence has gone out of the market, at least for the moment. And when confidence goes, lenders that are challenged by credit concerns tend to get scared.
At Anchor Loans we are the opposite of fearful. We have excelled in this business for almost 25 years—through good times and bad (and by bad, we mean the Great Recession). We know these waters, and we want you to know what we're doing (or more importantly not doing) to turn market uncertainty into opportunity:
1) Anchor Loans has always been the lender of choice for the more experienced investor. We are comfortable making larger loans for fix and flip, ground-up construction and rental financing. We routinely greenlight loans in the $1 million to $10 million range. That’s not going to change.
2) We are not cutting off large clients. We’re not worried about too much exposure because we know and trust our customers and their track records, and we trust our underwriters and our technology platform.
3) We’re not reducing staff just because volume is down. We’ve navigated these cycles before and we know volume will come back. When it does, we will have the talent in place to help you continue to expand your business.
4) Like every forward-looking company, we are automating what makes sense, but we’re not changing what works. We will continue to provide our best-in-class, team-centered approach to customer service. Want to know where your approval stands or where your draw is? Call your Anchor team directly and talk to the person who knows you and knows your deals.
5) We are not limited by the liquidity challenges many private lenders currently face. We’re backed by an asset manager with over $40 billion in assets.
The dictionary defines courage as “willingness and strength to do things that frighten us.” Based on my experience with our investors, courage and vision are what sets them apart. They’ll be ready when confidence returns to the market. And we’ll be ready too.