[GoodCustomerService]

The 5 funder model is just not profitable enough anymore. Why wouldn't you want a pricing war between 5-6 funders? You're guaranteed the highest approval and commission that way. It's much more effective in the sub-prime or high risk space. Definitely a higher likelihood your deal gets jacked from you but the best closers don't get their stuff jacked, Or they get paid anyway when they call out the funder who stole their deal. Best way to do it.....have 2-3 funders for anything needing north of an 8 month term on first position, and anything below that, including second+ positions, have fun.

[J.Celifarco]

The 5 funder model is just not profitable enough anymore. Why wouldn't you want a pricing war between 5-6 funders? You're guaranteed the highest approval and commission that way. It's much more effective in the sub-prime or high risk space. Definitely a higher likelihood your deal gets jacked from you but the best closers don't get their stuff jacked, Or they get paid anyway when they call out the funder who stole their deal. Best way to do it.....have 2-3 funders for anything needing north of an 8 month term on first position, and anything below that, including second+ positions, have fun.

I also think a lot of this has to do with the types of deals you are funding. If the majority of your deals are low quality and stacks I think you will need more funders then if the majority of your deals are 1st position deals. How you market and the deals you get in will have a lot to do with which approach you take and what relationships you need to get deals done. Just different ways of looking at the industry, and deal placement. Don't say the 5 or 6 funder model is profitable because there are plenty of offices who are killing it without shotgunning deals all over the place