Damien Mercer, southeast leadership and business development for FBC Mortgage, joins host Carol Morgan on this week’s Atlanta Real Estate Forum Radio episode. In this podcast episode, Mercer discusses how FBC Mortgage tailors its services to homebuilders.
Mercer said, “When I say we’re builder centric, our software and our databases and our reporting are builder centric, to be able to be a strategic partner to manage construction backlogs that are multi-day and multi-month in some cases.”
How does FBC Mortgage support builders across the country?
FBC Mortgage offers multiple services that benefit builders such as joint ventures, preferred lender partnerships and market share agreements (MSA). Joint ventures put a lot of power in builders’ hands while sharing 49.9% to 50.1% of the company with FBC Mortgage.
Mercer said, “Joint ventures have been a key to success for a lot of our builder partners, but we can tailor it pretty much to whatever the builder’s needs are.”
From small-scale to master-planned community builders, FBC Mortgage supports its clients with broker and banker models. Within the partnership, it has an easy procedure for builders that makes monthly financial recordings a breeze. Builders meet with the FBC Mortgage accounting team to provide in-depth financials and receive sales data. The company also set up a system for builders to input and export data.
FBC Mortgage is proud to present its clients with day-to-day updates and put some cash flow back in builders’ hands. Mercer points out that builders want confirmation that houses will close on time, which is why FBC Mortgage’s role is important: to ease their stress. He works alongside the builder to communicate with the sales team and potential buyers to ensure that closing happens on time.
“When you’re pledging capital to go out and build vertical construction, it’s vitally important that you know that the houses that you are contractually obligated for are going to close, that they’re going to close on time,” said Mercer. “Otherwise, you can’t do any cash flow or sales projections or any of that.”
Builders can also look forward to 12-month rolling property value analyses and shock reports when they partner with FBC Mortgage. These services help builders understand where their products lie in the market and what to expect when rates fluctuate. FBC Mortgage runs geographical reports as well.
Mercer likes to ask himself, “What is it a builder needs to know daily, monthly and annually, to continue feeding the machine for us to be a value of a partner and to make sure they continue to march forward in a profitable way?”
What are the advantages of forward-commitment buydowns for builders?
A forward-commitment buydown allows a builder to pay upfront and enjoy peace of mind with a permanent budget incentive. Mercer quotes a 43% increase in sales for builders that purchase block rates of 499 or lower. This buydown type differs from a standard mortgage because the seller is paying, compared to the financial responsibility on the buyer in typical buydowns.
Tune in to the full episode to learn more about FBC Mortgage and visit www.FBCHomeLoans.com.
About FBC Mortgage
Headquartered in Orlando, Fla., FBC Mortgage serves clients across the country in residential mortgage lending. FBC Mortgage is a Top 20 National Mortgage Lender and offers purchase, refinance, construction and renovation loans.
Podcast Thanks
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About Atlanta Real Estate Forum Radio
Atlanta Real Estate Forum Radio, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.
