Overcoming Industry Obstacles | Talking Loudly With Nate


– Again, Talking Loudly with Nate here, to bring you more insights
on all things lending, state of the lending address to come. Now, I do wanna briefly get
into some other categories that affect lending. So the first that I wanna
speak to is a big one, related to title. There’s been a lot of county
closures, temporary closures, permanent closures, which
pose problems for lenders to fund deals. A lot of the recordation offices, so the offices of the county clerks that record deeds for mortgage and record the mortgage documents, are in a little bit of
a struggle figuring out how they’re going to
continue filing everything, even though in title there’s
a lot of e-filing states, a lot of that still has
some level of manual entry and recording and that
is posing some problems in a number of counties throughout a number of different states, you gotta check with
your local municipalities and certainly on a
state and regional level to see where some of these
effects are taking place but from my perspective, this is where a lot of the
eyes in the lending realm of people that don’t have as
many of the capital worries to fund deals need to
be in order to make sure that you’re identifying that
transactions can be handled by title companies. Another big vendor that lenders
require to use is appraisers and appraisals. So, for the most part, appraisals are being linked
to being an essential business because banks are an essential business and banks essentially need appraisers and appraisals in order
to valuate properties, to determine the right loan structures. So, gonna read some notes that I had from one of our AMC vendors
is that appraisers are able to do business under elevated appraiser and homeowner safety guidelines. There’s guidelines and
provisions out there to protect homeowners with
the spread of this pandemic and so they are abiding by that, but they are still able to
conduct business, because again, they’re deemed as being
an essential business. Appraisers are also able to
perform property inspections, even in areas that are
issued as shelter in place and where even legal orders are out there prohibiting individuals
from leaving their homes for non-essential business but that has been granted to appraisers, but at the same time,
appraisers are not obligated to go out and inspect, so
it is their prerogative to complete the inspections. And so, you are going to
see some definite delays in appraisal reports getting assigned and in the turn times of them getting done ’cause those that are
comfortable to do appraisers are gonna be inundated for sure, as a lot of appraisers are
not gonna be comfortable to do reports. But, the good news is
everybody’s enabling appraisers to continue to do their part, which enables banks to do theirs, so that is some absolute good news, but do expect some slowdowns in things related to third parties. The last piece of things
related to lending that I wanna speak about today here is things related to construction. Again, the good news is,
in most places, states, and municipalities, construction
and hardware companies are deemed as being an essential business, meaning they are able to still be opened. That goes for your Home Depots and things. I heard an interesting
story from an operator that some of the large Home Depots are only allowing 50 people or
less in the stores at a time, probably down to 10 or less, so you can expect some long lines. But I have heard that Home Depot and other providers are reaching out to, especially their big clients,
to make sure that they know that they can be relied on for providing materials in constructions. You will definitely see,
permitting is a huge part of construction, and with
the shutdown or closure or temporary closure of a
lot of the county offices, that means that the permit processing and approval is going to be slower, but what I’ve heard from a
number of different counties is that they are essentially going to allow just the simple
applications to be the form of allowing people to move
forward without approved permits. That’s not everywhere by any means, but there are a lot of counties that are really forward-thinking in how they’re gonna
continue to handle this with less staff to review it and they don’t wanna slow
up construction by too much, that’s for sure. You’ve definitely seen some
hiccups in the labor side of construction with more
people wanting to create social distancing, so you will see that
labor may be hard to find, there’s a lot of demand for it. And then also materials, we’re interested to see
how pricing continues to go with materials, as you’re
gonna see some retailers chop prices to incentivize
people to buy more, but then you’re also going to see, because of the demand of
it, some prices go up. Definitely some interesting feedback on all things related to construction, which relates to the lending realm, because a lot of the stuff
that we do in the bridge space ties to and relies on construction and CAPEX projects to get done. But, again, there is
definitely options out there to make sure that business can
continue to proceed forward, which is very optimistic. So again, that’s some
insights on all things related to title, appraisals, and construction. There’s certainly a lot more to come. Hope you’ve got some good
information about it, please share with us your thoughts on it. And again, please check us out at directlendingpartners.com/thrive. That is where we are putting
out a lot of information related to the insights that we have, the changes that are
occurring and how DLP, Direct Lending Partners, is remaining as a thriving business, a thriving funding solution, to keep funding good real
estate investors’ deals and to keep business as
usual as much as possible during these tougher times. So I hope you all continue to thrive through your investing measures,
stay safe, stay healthy, stay smart in all of this. But, there is money to make, so stay opportunistic at the
same time and keep thriving. More soon. This has been a lot of Talking
Loudly related to lending, but we’ll be bringing you
more as it comes to us. Thanks everybody. (gentle music)

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