Low interest rates, a turbo-charged real estate market, and lots of folks willing to stretch to buy into the market added up to a terrific business for Reno-based MLSG Home Loans over the last few years.
The firm, a wholesale mortgage broker, has hired Panattoni Construction to build a new, 45,000- square-foot headquarters in the Reno Tahoe Tech Center, east of Highway 395 in South Meadows.
The purchase was brokered by Tim Ruffin, Colliers International, and MLSG plans are to be in by May 1.
"What's unique about us as a company," says Ed Goormastic, president and chief executive officer,"is that we originate most of our loans through Reno."
The company, which bills itself as a provider of financing for those without a base of savings or reserves (who typically need 100 percent financing) and for those with credit issues, employs 165 people in Reno.
Of those, a sales force of 56 (almost all in Reno) works the business-to-business side of the street, selling to the residential mortgage market.
A dramatic rise in interest rates would seem to be a big risk for a company dependent on making loans, and it is, says Goormastic.
But, he adds,"We anticipate steadily increasing rates, not a large spike." It's the spikes that frighten new homebuyers back into their rentals.
The company, founded in 1990 in northern California, moved to Reno in 1995, bringing about 18 of its 36 people with it, says Goormastic.
Of that group, there's been no turnover at all.
"People like it here," he says."That's one of the neat things about northern Nevada."
The company has grown in almost every one of its years in Nevada and grew faster than usual last year, adding 47 employees to its northern Nevada staff.
That's the driving force behind its move from its current two 13,750-square-foot buildings (half of one of them leased out) into new, larger space.
MLSG's desire for growth exceeds its current square footage, says Goormastic.
"In 2005,we plan to increase our staff by 10 percent," he adds.
And the challenge of finding experienced sales reps in a tight job market? Goormastic says he is aggressive in pursuit of employees."It's not hard to find somebody who is out of work," he explains."But it's hard to find somebody who wants to work." He finds his workforce chiefly by word-of-mouth, he says, and by looking far afield from the mortgage business."We put a lot of money into training," he says.He points to one of his success stories, a sales rep who previously managed Taco Bell restaurants.He's now making three times as much, says Goormastic.
And that - potential earnings also helps MLSG in its hunt for a motivated workforce.
