Private Money411 Magazine - The Source for Real Estate Finance - Page 8

THE BANKER RULES The person who underwrites your deals, owns your business and future. By Leonard Rosen, CEO of the Pitbull Conference I n today’s sophisticated real estate market, there are many ways to build your business. There are those people who chose to buy and sell real property, and there are those who choose to fund real estate deals. But lurking in the shadows is a secret person called the underwriter. The underwriter’s primary job is to provide their opinion and exercise their authority over your book of business. The underwriter is not your friend. The primary function of the underwriter does not always align with your goals. As an advocate for the private lending business, I see a significant amount of business turned down or swept under the carpet on deals that could be or should be funded. Keep in mind, underwriting criteria changes often and what once was a great deal to fund, today for some unfore- able compensation. The simple question is: Why are you giving control of your business and control of your future to another person? I see a significant amount of business turned down or swept under the carpet on deals that could be or should be funded. seen reason, the deal gets turned down because the underwriter doesn’t have an appetite for the type of business your are submitting. This scenario happens all the time, leaving the broker with a situation that does not generate a commission. At the end of the day, we all work for reasonRealty411Guide.com PAGE 8 • 2015 This business model makes no sense to me, and yet most brokers accept this as a fact of doing business on a daily basis. I am here to tell you there is a better Continued on pg. 18 Private Money411