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

How to Successfully Restructure Loan Origination Businesses

3 May 2024 · 1 min

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0:43

A founder explains how his loan origination business weathered a massive volume drop without drastic restructuring. He credits an early pivot six years ago, when he and two partners shifted from buying real-estate properties to purchasing loan notes, giving them time to build expertise in the new direction.

So really, the restructuring hasn't been as significant as you would expect, given the massive downsizing in volume that we've put into place.
Well, even given that, I would expect that there had to be a reeducation process because purchasing notes is quite different than purchasing properties. So what was that? What was the reeducation process like?
Yeah, that really was also quite simple because we were already down this train a long time ago, 5 years ago, or actually 6 years ago now, me and 2 other partners started a loan origination business.