Private Money411 Magazine - The Source for Real Estate Finance Spring 2014 | Page 6

added that the industry had
always been something of
an “intuitive-based” one,
which both men felt kept it
from growing like it could.
“We wanted to deliver
structure,” said Mehra. “We
wanted to shift the industry
from the whimsicality it
had.”
The demographic for private money investors today,
according to the executives includes much of the
younger mindset than was
seen 10 or 15 years ago.
The MOR Financial Team
The change in development
is spawned mainly from
“Maybe 20 years ago, that was the case, but a lot has changed.
disappointed and lack of confidence with the stock market and
Banking guidelines being as stringent as they are have really
the desire for more tangible investments.
opened things up for private money lending. Where else are peo“Thanks to the stock market crash, several savvy financiers
ple supposed to go to get the access to leverage?”
have a sour taste in their
Morsi adds, “Today’s
mouths, yet are still huninvestors are strong and
gry for yield,” said Mehhungry.” Since MOR comes
ra. “We are seeing people,
from the customary lending
who would otherwise
side, the company strives
have investment portfolito maintain and deliver on
Listen To Your Head. View every house you buy as a busios centered around Wall
customer service. And deliver
ness transaction; don’t let your heart interfere. “You’ll
Street now, deviating
they did. MOR Financial has
get carried away,” said Mehra. “You’ll get wrapped up in
into real estate.” Today,
set themselves apart by taking
making things the way you would want them if you were
instead of owning Micthe insight of due diligence
going to live there -- and that’s not necessarily attractive
rosoft as a growth stock,
and recalibrating it in a way
for an end buyer. That’s how you end up overspending.”
youthful investors would
to center on becoming trusted
rather invest in assets they
advocates for their borrowers.
• Have A Plan. Take the time to map out an implecan hedge. The emerging
“We always try to play the
mentation plan and do your homework on the industry
generation with access to
devil’s advocate for their ben-- in particular, the area where you’re buying. “Often
capital doesn’t have faith
efit,” said Mehra. “Not to kill
our buyers have great ideas, they’ve got a lot of knowlin the stock’s paper and
the deal, but to make sure our
edge they’ve accumulated from clubs and seminars,
would rather place funds
affiliates aren’t walking into a
but they’ve got no idea what to do with it,” said Mehra.
into something concrete.
black hole.
“They want to implement, but they don’t know how. Our
At the end of the day, a
As the company’s directors,
next MORSYNERGY event in February is going to be
hard asset like real propSean and Ajay look at every
focused solely on implementation.”
erty is never worth zero.
deal as though it was their
They can hang their hat
own so they can provide bona
• Have A Team. The best deal can be derailed without
on that!
fide feedback to their clienhaving a team together to back it up -- specifically, conAnother way the industele.
tractors. “You’ve got to have a really fantastic contractor
try looks different today
With repeat borrowers,
in place before you even start writing offers,” said Mehis the high-creditworthiMOR has rapport in the
ra. “Get references for your contractors, and call the refness of the borrowers. For
industry. The company aims
erences -- that contractor can be the ‘make or break’ of
the most part, the “flipto educate everyone from their
your deal.” Morsi agreed: “That’s typically what destroys
pers” and other borrowers
able borrowers to individuals
a flip,” he said. MOR Financial provides an approved list
MOR Financial scopes
just breaking in — and they
of contractors who are reliable and experienced.
have great credit. In the
work with a lot of beginners.”
past, hard money lending
“We’ve always felt that the
• Take Action. “Nothing beats getting out there and
was often seen as the
most durable relationships are
doing your first deal,” said Morsi. “Once you have your
realm of the hard-luck
built through education,” mensystem and team in place, then you can go out there and
borrower. Mehra suspects,

“Tips for Successful Flips”

really hit it hard.”

Realty411Guide.com

Continued on pg. 62

PAGE 53 • 2014

reWEALTHmag.com