The Wall Street Transcript, a paid subscription publication and Web site, recently featured an interview with LM Funding’s Chairman and CEO, Bruce Rodgers in the July 4th edition.
Some of the key highlights of the article:
How does it work?
“If you live in a community association, a condo, and there is more than 8% delinquency, you’ll not be able to get a commercial loan from a lender to fix your elevators, repair your roof, etc., which means you have to then special assess everyone else in the community a large amount. At 15% delinquency, you cannot get a federally backed mortgage to buy a place in that community, which turns it into an all-cash buyer community, which lowers real estate prices. Real estate prices go down, more people quit paying, and it’s a death spiral.”
How did LM Funding get started?
“We set out to try to create a way to fill the budgets of community associations when people don’t pay their dues. We started at my dining room table with three people in their mid-40s with nothing better to do and $31,000, and we grew that to a market cap of $30 million when we went public.”
What differentiates LM Funding?
“(Our competitors have) failed to grasp the need for the technology platform and the servicing of these accounts. It’s micro finance, and each account has 10 different types of money on it, and the balances change every day. To try to collect a $2,100 debt that has all those moving parts is very difficult. We’ve built that technology since day one, and that’s how we’re able to service these things in large volume and scale up.”
The Wall Street Transcript, a well-established and prestigious publication in the finance community, publishes bi-weekly industry reports that feature CEO, equity analyst, and money manager interviews. Reports typically cover two to three industries and express analyst’s views on each of the various industry sectors, as well as interviews with CEOs whose companies operate within the covered industries. The Wall Street Transcript has been published since 1963.
To read the complete article, click here.