In this episode of Lender Lounge, Kevin Kim welcomes back Ben Fertig. Ben is the founder and President of Constructive Capital, the leading national capital provider for DSCR Rental Loans and Residential Transitional Loans (RTL or Fix and Flip Loans). Prior to Constructive, Ben led Credit and Asset Management at Finance of America Commercial; and, before that, he served as Chief Operator Officer of Jordan Capital Finance, where he managed originations, credit policy, and capital markets. Ben was instrumental in the sale of the Jordan Capital Finance platform to Blackstone and Finance of America in 2017. Ben began his Mortgage Banking career over 25 years ago and has served in a Senior Leadership role in the Residential Investor Loan Market since 2012.

Ben delves into the rapid growth of Constructive, highlighting the company's journey from its inception in 2017 to becoming a nine-figure monthly producer. The discussion covers key milestones, strategies for risk management, the importance of capital diversification, and how Constructive navigated the challenges posed by the COVID-19 pandemic and subsequent market volatility. Ben also shares insights on leadership, the impact of economic cycles on the lending industry, and the increasing importance of managing fraud and maintaining solid client relationships in today's market.

Bullet Points:

[00:00:50] Introduction of Ben Fertig and Constructive Capital.

[00:03:59] Key milestones in Constructive's growth from 2017 to 2021.

[00:05:54] Strategies for risk management and capital diversification.

[00:08:27] Impact of COVID-19 on Constructive's operations and market conditions.

[00:11:02] Constructive's decision to partner with a life insurance company for stable capital.

[00:14:57] Managing a lean team and maintaining high production levels.

[00:20:11] The importance of client relationships and operational efficiency.

[00:28:30] Challenges in the current lending market, including fraud and market volatility.

[00:37:41] Technological tools and processes used by Constructive to maintain efficiency.

[00:45:55] The impact of rising interest rates and economic uncertainty on loan performance.

[00:53:09] Discussion on fraud issues and the need for industry-wide solutions.

[01:00:24] The potential for regulatory challenges in the private lending space.

Links:

Learn more about Constructive Capital at https://www.constructiveloans.com

Learn more about Geraci Law Firm at https://www.geracilawfirm.com

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