Business Etiquette on Lendicom
I find it interesting that the two complaints we hear most frequently at Lendicom are: (1) “The lender hasn't followed through” and (2) “The broker/borrower hasn't followed through.”
I know from my years operating as a private money lender that this concern goes beyond the community of Lendicom and extends to pretty much every reach of the greater real estate lending marketplace. Over the years I've learned to accept this lack of follow-through, but I've never liked it. I understand that in most cases when a borrower or broker simply disappears after I've requested information or proposed terms, his or her need for what I can offer must have been fulfilled in some other way; but I never really understood why he or she didn't at least let me know not to keep the file “active.” It's just a matter respect and good business practice-I figure-and I've always tried to hold up my end of the bargain.
Now don't get me wrong. There are plenty of folks out there who treat every person they encounter with decency and respect. I'd just like to see a little more of it. I'm not preaching; I'm just suggesting that, if nothing else, this kind of follow-through is a matter of good business. It may not always seem to pay in the short-run but I am convinced it always pays back over the long haul. On those occasions when a broker has sent me an e-mail explaining why the loan we have been working on has gone away and thanked me for my time, I was grateful and made a note of it. The next time he came back, I was inclined to roll out the red carpet.
So in the interest of promoting better business and a greater sense of community here at Lendicom, I'll offer some tips for etiquette for your transactions on Lendicom:
(1) If you are a lender, respond in a timely manner to any loan proposals that come to you. Once a loan gets to this point in Lendicom, the borrower/broker has made a serious investment into researching and entering the proposal. They have also made a specific decision to submit the loan to you in particular. If you click FOLLOW-UP, then follow this in quick order with either an e-mail or a phone call informing the borrower/broker of the next step in the process.
(2) If you are a borrower/broker, respond in a timely manner to such e-mails or calls from the lender, even if it's just to say "Thanks, but no thanks."
(3) Finally, if you are a lender, it is important that you regularly (at least once every two weeks) go through the loan proposals on your My Account page and change the status where appropriate. If you have decided to pass on a loan, then it is important that you change the status to DECLINE. If a broker/borrower has not responded to your inquires after a sufficient period of time, change the status to DEAD. And of course if the loan is proceeding, change the status accordingly. This is important as it allows Lendicom to track the progress of loans through the system. But it is also important to the borrowers/brokers who are only allowed four submissions at a time. If you keep their proposal status marked IN PROCESS when in fact it is not, you may be blocking them from submitting the proposal to another lender.