Allen LomaxPrivate Investment Coach, Royal Legal Solutions · Capital Allocator | Empowering Professionals to Transition From Earned Income to Asset-Generated

From Loan Seller to Institutional Buyer: Our Journey to the Other Side

28 Apr 2024 · 0 min

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0:26

In this segment, the speaker explains how their firm transitioned from selling loans to institutional partners to becoming an institutional buyer themselves. Recognizing the profitability of being on the opposite side of the transaction, they decided to flip their business model. Their primary source of deal flow now comes from their former company, which continues to originate loans under new ownership, allowing them to purchase those loans as an institutional buyer.

And we realized that being on the other side of the table was also a pretty darn good business. You know, we were selling our loans off to our institutional partners and they were doing quite well. And we thought, well, why don't we become one of them and we could just flip to the other side of the table, which we did. And really our primary source of deal flow is our old company. So we're now buying loans from our old company, which is under the control of the new buyer.