Loan Originations for a Builder – Looking for Insights and Compensation Details

Seeking Advice
1

Good afternoon…

Just a bit of background… I’ve got five years in loan originations, an MBA, and spent two years in RMBS at investment banks. Right now, I’m working as an asset manager for a multifamily lender. I’m moving to Denver soon due to some life changes and found an origination role with a luxury home builder.
For anyone who’s worked with builders, what’s the experience like? And what’s the typical compensation in terms of basis points (bps)?

Any advice or insights would be really appreciated…

2

It is advisable to speak with a licensed loan originator or financial counselor if you are a builder thinking about funding for construction. They can assist you in negotiating advantageous terms, evaluating various loan possibilities, and comprehending the loan origination procedure.

3

Construction loan :grinning: interest rates can differ significantly depending on a number of variables, including the borrower’s creditworthiness, the project’s risk profile, and the state of the market.

4

Construction loan repayment plans often include interest-only payments for the duration of the project, followed by a balloon payment or conversion to a long-term mortgage at completion.

5

For construction loans, collateral is usually required by the lenders. This can include personal guarantees, :unamused:other real estate assets, or the land that is being developed.

6

.Loan originators frequently receive compensation based on many performance metrics, including the volume, quality, and quantity of closed loans.