What deals are coming in for ReProp Financial?
Are there any changes in the type of borrowers ReProp Financial has worked with?
ReProp Financial’s borrowers are generally strong. We are equity-based and all our clients either have the capital for the purchase or an asset for refinancing. ReProp Financial is not a high-leverage private real estate lender, so our loans continue to remain strong as they have always done before. This is key to our underwriting and the values we espouse as a company.
Are there any changes to how ReProp Financial approaches real estate deals?
There are some loans that we can go above our typical limit. In this case, our willingness to stretch on riskier deals that we really like, has always been our core value. When COVID-19 struck, all our competition decided to revise their underwriting standards, but ReProp Financial never had to do that. Fortunately, we have never gotten to the point where we were forced to rein in our underwriting policy. It is the same process from day one. It is perhaps boring, but we have always continued to do well consistently.
ReProp Financial can be flexible. So long as the borrowers continue to do what they say they will, which for us is making those payments timely, ReProp Financial will typically extend a borrower in need. The same is also true for any promises made after close of escrow. The credit market has not tightened up as some people tend to believe. Our borrowers are still trying to achieve their exit from us and it is usually through bridge loans. ReProp Financial has always been there for them for they are optimistic, though sadly haven’t been able to meet their original payment timeframe.