Private Lenders' Podcast HMB's Origins and the State of the Industry Today (Chris on the Wealth Flow podcast with Keith Borie)
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Feb 15, 2025 Chris Haddon, co-founder of Hard Money Bankers and an expert in investor relations, shares insights from his journey in private lending. He discusses the evolution of loan servicing software and strategies for managing defaults. Chris also reflects on his transition from mortgage banking during the Great Recession and emphasizes the importance of understanding local markets. He touches on the impact of institutional investors in the mortgage landscape and highlights the significance of education in successful investing.
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HMB's Beginnings
- Chris Haddon and Jason Balin, both from Rockville, Maryland, started in real estate after college.
- They flipped houses and realized lenders made similar profits with less work.
Starting During a Downturn
- HMB's first loan was in December 2007 during the Great Recession.
- Starting during a downturn proved advantageous due to the market bottoming out.
Conservative Lending Practices
- Require borrowers to have significant skin in the game (30-40% of the loan amount).
- This conservative approach mitigates risk for the lender, even if it means losing some deals.
