Why should you use a loan broker?

When an association contemplates an HOA loan, there will always be differing opinions, competing agendas, and varying degrees of financial literacy among community members. Ultimately, the board needs to put forth recommendations. 

They have a fiduciary duty to the association and its owners to determine the most appropriate strategy for raising capital. At Arch Capital Solutions, we feel it is imperative to have an HOA loan expert advocating for and working with board members. We help align on thoughts and ideas and strategically navigate the banking landscape.

We work for the association, not the bank:

Having worked in the banking industry for 30+ years, we know firsthand about competing interests. When a potential borrower approaches a bank, the banker has an incentive to prioritize the interests of the lending institution. It is their job to put the bank and its stakeholders first. They are highly attentive to maximizing profitability for the lender.

At Arch Capital Solutions, we work for and represent the association. Our focus is on negotiating the best terms for your HOA. We have lots of lender relationships to address your HOA’s unique situation. With that in mind, we guide the loan request towards lenders who offer the best terms for the specific needs of each HOA. 

Banks understand that they need to sharpen their pencil when we bring them a loan. They know that we work with many lending partners and are familiar with current market conditions.  

Our association doesn’t need a broker; we can do this ourselves:

We appreciate that boards may want to search for a loan independently. While we do not discourage joint searches, boards should be mindful of a few considerations. 

Second chances are tough. Once an application has is declined, it becomes more challenging to re-apply and get approval. In other words, the first shot is usually the best. We can advise the board on proper loan packaging and timing. In some situations, delinquency or legal issues will trigger a credit rejection. It may be best to delay an application until the board can remedy these items.

Arch Capital prepares a Request for Proposal (RFP) that positions the HOA in the most favorable light possible. The RFP allows lenders to quickly and efficiently gauge their interest in pursuing a loan. An added benefit of a professionally prepared RFP is that the lender explicitly understands that they may not be the only lender in the mix. It is implicit that they will need to submit an aggressive proposal to win the business. 

That said, at Arch Capital Solutions, our specialty is obtaining and negotiating these loans. 

For example, we recently worked on a $25M project in the Midwest. The board had already received term sheets from multiple lenders and felt they had their best options in front of them. They allowed us to present another option for their consideration that turned out much more favorable to the association. 

Our efforts saved the association a considerable amount of money on interest payments. The HOA also got a much more customized loan structure that allowed for more flexibility and reduced the overall burden to the community.

Success-based fee structure:

At Arch Capital Solutions, we believe our results speak for themselves. We only invoice our clients after successfully closing their loans. We never charge an hourly or retainer fee, and we are 100% there to help and support the association through the entire loan process.

Contact us today. Let’s discuss funding solutions for your association!

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Arch Capital Solutions specializes in arranging loans for homeowners and condominium associations throughout the country.