Q&A: Portfolio Analyst at Non-Bank Lender (Real Estate Lending)
Hey guys, thought i would give back with a Q&A as this community has helped me quite a bit. I'm what you would call a porfolio analyst for a non-bank lender in Canada...think more along the lines of CMLS/MCAP/First National. Been here for almost a year and it's down time now so I can answer some questions/talk about growth in this position.
What made you choose nonbank lending over bank lending? And did you have another job previously, or did you start as a portfolio analyst?
Not too sure how familiar you are with the Canadian landscape however there's 5 big banks...(TD,CIBC,BMO,RBC and Bank of Nova Scotia). I've only seen openings come up for CIBC and BMO and as a result, I decided to look into non bank lenders which have a lot more opportunities.
I had worked at one of the banks mentioned previously at the branch level prior as a teller for a few years and was about to apply for the manager role as they thought i'd be a good fit but i was dreading the branch environment.
What size is your fund? $___MM? What does the team look like? How many analysts/originator? Are you all basically hard money? What are your usual terms? We are 2 points and 11% for the most part with an average loan of around $5MM on a $220MM fund. Are you geographically constrained to Canada only? Within Canada are you diversified or focused on a single area? Do you have a large asset management team to handle foreclosures?
I'm going to try and stay anonymous as much as I can
Can you comment on how in-depth your underwriting typically is for term deals? Are you typically running full cashflow models over a given fixed loan term, or strictly to an 'as is' DSCR and LTV? Some colour on the granularity of underwriting for construction debt would also be much appreciated.
I don't touch underwriting at all however i've reviewed the underwriting binders before and can comment to some extent. Yes we run full cash flow models. We're currently working on a risk management team per se to reevaluate loans on an annual basis by assigning risk/debt ratings now.
My portfolio is comprised of mostly construction loans actually and I haven't gotten into reviewing the underwriting yet however I may go in this weekend and review some as I'm reading the credit manual this weekend.
Could you provide compensation estimates by years of experience up the ladder?
Ex: Associate 1 (3 years of experience) - $150K VP (7 years of experience) - $300K
Not too familar with comp however I know most analysts will stick around for 5 years...becoming sr at some point and then becoming a originator at that time if they would like to go down that route
How do exit opportunities from a non-bank Lender look to the equity side?
Don't think i've been around long enough to learn about people moving to the equity side. I can comment on shops that people have moved onto though: Dream Unlimited, Kingsett Capital, Harbour Mortgage Corp, Home Trust, Equitable Bank, Metropia, Manulife to name a few.
Facking beauty eh surprised you aren't hammered from the raps championship
@nontargetnewbie don't leave us hanging here!
bump...
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