With over 3000 members, LoanMLS is having a significant impact on our members’ businesses – helping them to find qualified buyers more quickly than they thought possible. Here’s an interview with LoanMLS member, Mychal Dobbins, an Asset Manager and Partner at Earn Investments Corp, who has experienced this strong response first-hand.
Q; What types of notes are you posting on LoanMLS?
I am selling performing and non-performing commercial and residential notes – all real-estate secured.
Q: Have you found that certain notes receive better response than others?
There seems to be a large appetite for distressed assets. One thing that has been exciting about the LoanMLS platform is that it allows investors/institutions, who maybe don’t have the credentials to bid directly on FDIC-insured assets, to conduct their own due diligence without having to go through the formal bidding process.
Q: How do you screen potential buyers/investors who contact you?
I created a list of qualifying questions that LoanMLS includes directly in the inquiry form that potential buyers complete and is then sent to me. With these questions, I’ve been able to eliminate the “tire kickers” and the broker chains. For example, my first question is “Are you buying for yourself or are you acting as a broker?”
I have been very surprised at the heavy response that I’ve received on my listings, and the inquiries are all from very high quality, knowledgeable investors.
Q: Before you started using LoanMLS, how would you typically find buyers for your notes?
It was based on my personal relationships or sphere of influence – people that I had done business with in the past, so limited.
Q: How has LoanMLS impacted your business?
I have never had such a strong response so quickly. I posted a listing for a $60million pool and had 8 inquiries in the first week. I can’t say enough about the response – it’s been a very positive experience and a huge benefit time-wise. The quality and integrity of the buyers has been very high – they are principals of their companies and all of them were able to validate their credentials.
I’ve created new relationships through LoanMLS that are going to be long-term. I’ve even acquired other assets through these relationships and have really been able to maximize the contacts that I’ve made with LoanMLS.
Q: Do you have any tips that you’d like to share with other LoanMLS users?
I’d recommend creating your own qualifying questions, as I’ve done, to help qualify potential buyers upfront, which saves a lot of time.
I’d also recommend keeping your listing information up-to-date. I’ve got working pools and each time I’ve gone in to update them, adding assets or adjusting the price, it’s led to new inquiries. So keep your listing current to continue to generate responses.
Finally, it’s really important to follow-up with people who make inquiries quickly while their interest level is high. You get better results by following up quickly.