“I feel the need. The need for speed!”
Maverick and Goose said it best in Top Gun all those years ago. But what they meant wasn’t as reckless as it may sound. Fighter planes have been dogfighting each other in battle (or practice) for almost 100 years, and it is taken as gospel that the greatest advantage a fighter plane can have in a dogfight is speed.
While Constructive Capital isn’t dogfighting MIGS over the open ocean in a Hollywood movie, what we are doing is winning the war on operational excellence for our clients. Lenders and brokers report that loan file velocity is the most important component of a client/investor relationship for them. Speed at every step combined with transparency and communication can offer investors a tremendous competitive advantage and increase the likelihood of a successful outcome.
At Constructive, thanks to our best-in-industry Operations team, we have been continuously working to refine our process of providing industry-leading turn times for DSCR rental loans. However, it must be noted that, in this current environment, there are no shortcuts to this level of performance. Just like in the real world, if a fighter plane doesn’t pass all of its pre-flight checks, they won’t clear for takeoff.
Much like a loan moving through our process, we must always make sure that quality of our loans is airworthy. Currently, we are seeing 57% of our files close in 13 days or less. On top of that, for some of our more experienced, high-volume clients, we have been able to get their loans into closing in five days or less!
The only thing that matters more than speed and execution is knowing that your capital provider will be there when you need them. We’ve heard from our clients themselves that nothing is worse than not knowing if your capital provider will be there for them at closing. As everyone in our industry is aware, we currently find ourselves in uncharted economic waters. We don’t know what rates are going to do. We don’t know what the future holds for credit policy in this product class. These unknowns can potentially have drastic consequences for businesses in this space, underscoring the necessity of working with trusted partners.
This is where the combination of stability, speed, and certainty of execution matters most. We routinely hear from our clients, in one way or another, that these factors matter a great deal to real estate investors; knowing how quickly they can get to the closing table overcomes most other considerations.
Regardless of whether rates go up or down, and irrespective of what is going happen in 3 or 6 months, our goal has been, and will always be, to provide best-in-class speed and stability to our clients and their borrowers.
Constructive is dedicated to providing lenders and brokers with best-in-class products that allow them to grow their client base. And while speed wins above all else, we are still maintaining the high standards that have enabled us to achieve this unparalleled combination.