The Start Up

Like most business start-ups, they were terribly under-funded. The business started in the basement of Cooke's Pasadena, Maryland town home. 'I remember the first day in business' says Cooke. 'We both showed up in this tiny basement and couldn't hear ourselves talk over each other. Both of us were born salespeople and salespeople are loud!' Eventually the kinks were worked out and they began to service clients. Their biggest fear was that production would drop without the administrative staff they had become accustomed to at their previous employer. Without money to hire a staff, or the office space to put a staff, these administrative responsibilities were all placed on the two new business owners. 'Amazingly, we were profitable in the first month' says Cooke. 'A lot of the corporate red tape involved in processing a loan at our previous employer actually slowed the process down'. Eventually the two warmed up to the idea of starting and staying small and began to advertise as the guys who could close any loan in 7 days or less and if necessary in as quickly as 5 days. Being smaller and more agile to the process made them able to process loans twice as fast. 'We couldn't believe it' says Bernoni. 'Our biggest fear was not having a staff to make things move fast and it turned out to be a blessing'.

 

Eventually, a few years later in 2003 they would move out of the town home and into a slightly larger space with room for some assistance. The business was still ran close to the cuff, though. In an effort to keep as much control over the process as they could, Bernoni's wife, Nancy joined the team as their processor and Cooke's wife, Debra was their book keeper. They also became licensed on 3 more states; Virginia, Florida and Connecticut. The four will be the first to admit that mixing business with family had its up-sides and down-sides. There was no question that the four of them shared common goals. They worked together, dined together on weekends, vacationed together and Shawn & Chris, who both enjoy music, have even played in the same Band together. But it wasn't always roses. 'There were definitely some bumps in the road' says Bernoni. 'We would work through them as best we could and move on. Whatever happened, we always knew we were better off together as a team, then apart as competitors'.

 

Still Standing in 2007!

In January of 2007, the company celebrated five year's in business. They both agree the timing of the start of their business couldn't have been better matched with the housing boom from 2002-2005 but admit it was not done on purpose. 'We just got lucky' says the pair. What goes up must come down and late in 2006 the real estate market began a steady downturn that has lasted through all of 2007 (so far). Many mortgage companies have gone under, especially the larger ones. It's worth noting that their previous employer who had issued them fair warning about their business plan was one of them. Closing its doors on a Monday morning to some 150 employee's with little warning to anyone. What keeps these two in business? Loyal Customers, says the pair. In their first five years the two have closed over 1800 loans and amassed a huge loyal customer database to go with it. What makes this number even more significant is that they have personally handled each client. 'We know them all' says Cooke. 'Sometimes we'll get a call from a borrower we closed in 2002 and they'll start the conversation by re-introducing themselves. They're a little surprised when we say: Oh, Hi Mr. Smith, how is your wife Susan and did she ever take that job she was considering the last time we spoke? We remember them all' says Cooke. Both of them have considered growing the business to include other Loan Officers but admit their just too picky about how they service clients, but maybe one day.  

What's in Store for the future??

The company is planning a move from their current office in Howard County Maryland to a larger office in the Catonsville area of Baltimore County to better service their clients. 'When we tell people we're growing when the rest of the mortgage world is in turmoil, people think we're nuts' says Bernoni. The company is making business plans as if the worst Real Estate Market of this century is non-existent. They are in the process of obtaining their license from the Federal Housing Administration (FHA), a feat that is not for the weak at heart. The endeavor requires high scrutiny by many private and governmental bodies but will allow the pair to offer FHA Loan programs to borrowers. FHA's loan programs offer more competitive rates to a wider credit range of borrowers with lower down payment requirements. 'This move will help bullet proof our business as a lot of the ALT-A (sub-prime) loan programs are disappearing from the market place' says Cooke. They're also making plans to build a small marketing company within their organization that will cut the companies marketing expense and better position them for growth as the lending market tightens up.