Builders Capital entered 2021 optimistic and ready to make some waves in the construction world. It has been a record-breaking year as we far exceeded our original loan volume goal and have financed the construction for over 8500 units across the nation. Each decision made, loan funded, and relationship nurtured was made with the purpose of creating solutions and delivering excellence to our builders and developers.
From designing new loan products to developing new technology, Builders Capital has delivered on its promise to be “The Builder’s Most Valuable Relationship.” As the year is wrapping up, we took a moment to sit down with Rob Trent, Chief Executive Officer of Builders Capital, to reflect on 2021 and look ahead at what’s in store for 2022.
Creating Solutions & Delivering Excellence in 2021
How has Builders Capital served homebuilders in 2021?
I believe we’ve done a great job at understanding our builder’s specific needs. Whether that’s through our loan product offerings or funding quickdraws, we’re essentially helping their businesses grow without them having to worry about capital constraints. By creating flexible capital, we help our borrowers to purchase land quickly and aggressively. They face fewer constraints so they can be highly productive and profitable in today’s environment. We call it “Make Sense Lending.”
What milestones are you most proud of in 2021?
I love the fact that we’ve helped build so many homes given today’s nationwide shortage. In our portfolio, we have 8500 units to date, which means 8500 new families get houses someday. We’ve done an outstanding job of expanding our footprint geographically across the country.
We also have several new relationships with qualified Loan Brokers who we help train and support for our highly customized loan products. This allows them to be extremely productive while offering great service and value to their customers. We’ve created new technology to cater to their specific needs so they can have the tools and resources they need to be successful.
We have made notable progress in how we service our customers through technology and innovation. We entered the year with a goal of 1.4 billion, and we’re closing it out at what’s projected to be over 2.2 billion; this is a significant accomplishment. Our process of interfacing with our borrowers from origination, throughout servicing, and all the way through paying a loan off, allows us to support our borrowers during every phase of construction.
We problem-solve issues immediately as they arise, resulting in a high level of borrower repeat business. I’d argue the highest in the industry for private lenders. This can only be done through the technology we offer and the commitment of over 115 employees dedicated to resolving borrower issues.
Reflecting on Progress
Where was Builders Capital in December of 2020, how have we moved forward from that place?
2020 was an odd year because of Covid. We took four months off and spent that time revamping our systems and improving processes and experiences for our borrowers. It was four months of really dedicating ourselves to customer service and looking out to the future. That’s what helped us in 2021 to get the foundation in place to allow that much volume of high-quality loans from high-quality borrowers go through the system.
We were able to sit down and question everything we were doing to ensure that going forward, it was scalable and efficient. Everything was designed in the interest of serving our borrower’s needs while reducing time and friction in how their experience was perceived.
In December of 2020, we were just getting back into the lending space; we had finished our four months off and reengaged the outside world. We launched a National Wholesale Division, which has successfully delivered over one billion dollars in loan volume in its first year. To have a new division deliver that much volume in 12 months is remarkable and a testament to the amazing team we have in place.
Filling the Gaps in the Marketplace in 2022
What are you most excited about in 2022?
We’ve got a unique opportunity in the marketplace. Our product line is hands down the best in the country.
- We have our W.R.A.P. (Warehouse Revolving Asset Pool) product, which has recently been released and is having tremendous success.
- We’ve launched another sales channel to cater to large production builders across the country.
- We’ve launched a Multi-Family dedicated sales channel.
- We’re enhancing our current salesforce dramatically.
- Our technology stack is rapidly evolving with improved experiences at the broker level, on the borrower level, and for just about anyone who interfaces and uses our technology.
What opportunities for innovation do you see in the marketplace 2022?
We will soon be announcing an acquisition of a software company that will allow us to offer tremendous value to our builders. It’s another first ever in our space and I’m more bullish than I’ve ever been in terms of what benefits this brings to our builders. This acquisition will deliver on the continuous mission we have to be the “Builder’s Most Valued Relationship”.
It will allow our builders to use our software for things outside of just lending and finance, more construction-related planning, scheduling, and cost analysis. It’s delivering on a platform that allows people to use our services and data in ways that can’t really be imagined today. This will revolutionize our space and give Builders Capital an advantage in the market that for now, other lenders can’t cater to.
Elevating the Standard in Construction Lending
How is Builders Capital Elevating the Standard in Construction Lending?
It all starts with our team. We have, from my perspective, the best team in this industry. It all starts with us; we are the face of Builders Capital, we’re the backbone of it, we’re elevating the expectations of each other as a team. We’re elevating the standards in terms of how we process, originate, and service loans. The overall theme is for everybody to take what they thought was great before, enhance that, and make it better. When we do this, everyone wins giving our borrowers a best in class experience overall.
One of the best ideas that Builders Capital has is brainstorming sessions with groups of individuals that we work with. We’ve got a lot of intelligent people working for the organization, and I encourage feedback whenever I can hear it. We’re very open to ideas, feedback, suggestions, and criticism. That team atmosphere really plays on itself and creates exceptionally wonderful things here.
Where do you hope to see Builders Capital a year from now?
Looking ahead to 2022 and the business goals we have in place, I am much more optimistic than I was last year. We are looking to triple our total loan volume. Looking at what we have lined up to generate that volume and to attract those borrowers with the new loan products and the capital we have in place; I actually feel better about this year’s goal than I did last year’s goal.
