As Mark Filler looks out of his Chicagoland corner office, he sees more than snowfall and congested freeways, he sees a new role for the American real estate investor. As founder and CEO of Jordan Capital Finance (JCF), Filler is looking to equip investors with the capital, tools, and guidance necessary to fill the increased demand for suitable housing. “America’s housing inventory is aging, and pent up demand is searching for move-in ready homes. Investors play the critical role of revitalizing neglected, established, and aging neighborhoods”, says Filler. “It’s not simply a question of purchasing a new home or an existing home, you can’t throw away a home like you can throw away an old pair of sneakers. Investors restore the foundation of our communities and allow purchasers access to effortless housing solutions. Just because you purchase a house built in the 1950s doesn’t mean you have to spend your weekends fixing leaky pipes.”
Filler was the founder and CEO of Prospect Mortgage. During over five years as President, CEO and then Executive Chairman, Prospect grew to be the one of the largest 203(k) lenders in the country, second only to Wells Fargo (Prospect was also a top Fannie Mae Homepath Renovation lender). A 203(k) loan is sponsored by FHA and allows a homeowner to purchase and renovate a property. Due to program restrictions, 203(k) loans are not eligible for investor loans. “I sat back and thought, there is a massive number of investors that could benefit from the access to capital and a process similar to the 203(k) program, including construction draws”, says Filler. “But it’s not just the capital, investors need a scalable national solution to short-term financing, including the expertise and passion to support their growth.”
After researching the market opportunity, Filler founded Hilco Real Estate Finance (HREF) armed with a similar process, underwriting technology, and personnel familiar with the 203(k) lending program. “Our vision isn’t just to deploy capital, it is to be a national financing solution to help investors’ real estate businesses succeed. We provide credit lines and work with clients to ensure they invest in sound properties with attractive returns. We view our clients as long term partners and know that when their business succeeds, we succeed.” states Filler. “We want to help them maximize their profits.”
After two years of steady growth, Filler knew that he needed another capital partner to capture market share at a faster pace. In October of 2014, Filler sold a majority interest in HREF to Garrison Investment Group, a premiere New York based private equity firm with extensive expertise in financial services and real estate. HREF rebranded as Jordan Capital Finance.
Today, armed with what he calls nearly “unlimited capital”, Mr. Filler is pushing to solidify relationships with the nation’s premiere real estate providers, big and small, that serve the investor community. “We do not want to do this alone, we want to make sure that real estate brokers, loan officers, general contractors, and other vendors all prosper along the way. It will require the cooperation of the entire single family real estate ecosystem to restore America’s real estate infrastructure, and we think we can play a leadership role in accomplishing that task,” states Filler. JCF has established partnerships with multiple local, regional, and national real estate brokerages, asset managers, servicers, auction companies, and mortgage originators to support their investor client base. “We are proud to partner with many of the industry’s top brokers to ensure superior service to our investors as well grow our partners’ business.”
In 2014, investors purchased approximately 1.1 million single family properties for approximately $170 billion. Fifty percent of those sales were paid for in cash. Many thousands of investors purchased multiple properties. According to the National Association of Realtors, from 2003-2013, investors purchased 22% of all homes sold, displaying the resilience of real estate investors through all economic cycles. JCF hopes to one day serve as the largest national investor finance platform, providing streamlined, socially responsible financing to the foundation of our nation’s economic recovery: the real estate investor.
-Jordan Financial Capital