This is in the founders own words:

Hi Travis,

Thanks for the question. I did a long, spoken monologue into ChatGPT and then told it to organize it as an email, so forgive the obvious AI writing style below :)

Also, did you give any more thought onto how we should divvy up the states? We just brought on a copywriter so are ready to get going if you let me know the states we should focus on.

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Here's a breakdown of the key points regarding lender rates and why builders or flippers might choose one company over another:

Rate Differences Among Lenders

Yes, rates do differ between lenders. Major national lenders like Kiavi, RCN Capital, and Corevest operate similarly to large banks. They tend to offer lower interest rates, typically ranging from 8.99% to 10.99%. However, these lower rates come with several drawbacks:

• Slow Operations: These large lenders move slowly and have poor customer service.
• Accessibility Issues: It's often hard to get a hold of anyone for support, and getting construction draws for rehab budgets can be a lengthy process.
• Outsourced Servicing: Their servicing is often outsourced to third-party companies, sometimes overseas, leading to subpar customer experience.

Note Sellers and Loan Brokers

A significant majority of these large lenders are note sellers or loan brokers. They originate loans on warehouse credit lines, then package and sell them to secondary markets or hedge funds. This process leads to:

• Poor Post-Sale Service: After selling the loans, the hedge funds outsource servicing, leading to further degradation in service quality.

Differentiators for Loan Mountain

Loan Mountain, by contrast, operates as a direct private lender. Here are our key differentiators:

• Direct Lending: We are a balance sheet lender, holding all loans on our books and not selling them to hedge funds.
• Local Presence: We market ourselves as a local neighborhood lender, with boots on the ground in the cities we operate. This ensures personalized service from loan underwriting to payoff.