MBA NewsLink Q&A: Ben Fertig on Pivoting to Profitability

Ben Fertig is president of Constructive Capital, a subsidiary of Fay Servicing LLC, Chicago. Constructive Capital originates, services, and securitizes single-asset rental loans, and originates and services fix-and-flip loans. Prior to Constructive, Fertig ran credit and asset management at Finance of America Commercial and served as chief operator officer of Jordan Capital Finance, where he managed originations, credit policy and capital markets. He was instrumental in the sale of the Jordan Capital Finance platform to Blackstone and Finance of America in 2017.

MBA NewsLink: What is business purpose lending?

Ben Fertig: Business purpose lending (BPL) is financing specifically designed for real estate investors looking to acquire, improve, or leverage non-owner occupied properties. BPL products include fix-and-flip loans (also known as residential transition loans) and debt-service coverage ratio, or DSCR, products.

What makes these loans different is how they’re underwritten. Instead of looking at the borrower’s W-2 income or debt-to-income ratios, we focus on the property’s income-generating potential. It’s a flexible, asset-based approach that supports entrepreneurial investors and allows for more speed and efficiency in execution.

MBA NewsLink: How has origination volume for business purpose lending been?

Ben Fertig: Looking at the industry overall, Lightning Docs data shows DSCR volume across its platform is up 109% YOY through May 2025, and Bridge Loan volume is up 44% YOY.

About one in every four properties is now purchased by an investor, which is a clear indicator of how much demand there is for BPL products. At Constructive Capital, our volume is up significantly year-over-year. It’s a segment that’s proving to be resilient and full of opportunity, even in a higher rate environment.

MBA NewsLink: What impact do interest rates have on business purpose lending?

Ben Fertig: BPL products are more rate agnostic than conventional mortgages. Real estate investors tend to focus on the value of the asset and the opportunity it represents, rather than fixating on the interest rate. Business purpose lending is about access to capital, speed, and execution. To help manage higher rates, investors can delay refinancing, or even raise rents. But if the numbers work, investors move forward on an opportunity, regardless of where rates are.

MBA NewsLink: Are these non-owner occupied products that are purchased by Fannie Mae and Freddie Mac?

Ben Fertig: No, these are private lending products, so they fall outside the scope of agency guidelines. Business purpose loans utilize different underwriting methods and borrower analysis than traditional lending.

For example, DSCR loans are underwritten based on the income potential of the property rather than the borrower’s personal income, and fix-and-flip loans are asset-based with short-term structures. These are loans for experienced investors, not owner-occupants, and they’re funded by private capital that’s structured for flexibility, speed, and repeat lending.

MBA NewsLink: How does the real estate investor differ from homeowner-borrowers that traditional mortgage originators typically deal with?

Ben Fertig: This is still residential real estate, so it is not entirely different. That said, real estate investors are generally much more familiar with the lending process. They’re not looking for a one-time home loan—they’re focused on building a portfolio and securing financing that helps them scale. More importantly, they are typically recurring borrowers and generate multiple loans over time. They understand leverage, returns, and timelines, and they’re often more concerned with speed and certainty of execution than rates. It’s a very different mindset from a homeowner-borrower.

For originators, working with real estate investors is about aligning them with the right capital provider(s), building long-term relationships, and helping them move quickly on opportunities.

MBA NewsLink: How do traditional mortgage originators differ from loan officers who originate loans for real estate investors?

Ben Fertig: There are many similarities between the two. Originators add significant value to the marketplace, providing both consumers and investors with a much broader set of financing options than any one single lender can provide. They have a direct relationship with the ultimate customer, and they help customers to compare loan options, find the best fit, and ultimately save time in the process.

What differs is the products and lending regulation, as business purpose loans don’t have to abide by the same regulatory framework that conventional mortgages do. BPL products are not consumer credit, so they are not subject to the same financing regulation as traditional primary residential mortgages. As a result, originators don’t necessarily need an NMLS registration or state license, depending on the jurisdiction.

MBA NewsLink: What advice do you have for traditional originators?

Ben Fertig: If an originator is focused solely on conventional loans, now is really a good time to diversify your portfolio and add non-QM products like investor financing. Business purpose lending offers a real opportunity to grow revenue by serving a borrower base that’s active, repeat-driven, and less rate-sensitive.

For larger mortgage shops, diversification also helps with loan officer retention. When conventional volume slows down, having business purpose products in your toolkit gives your team more ways to stay productive and profitable. It’s a natural extension of what they already do, and a great way to bridge the revenue gap.

MBA NewsLink: How much work is needed to move from conventional originating to business purpose originations?

Ben Fertig: The shift from conventional to business purpose lending isn’t as difficult as many think, especially when you consider how streamlined BPL lending can be. Originators can also get support for their investor clients from private lenders like Constructive Capital, who can help them to be successful with our knowledgeable account executives and technology platforms.

That said, there are differences. A few of those differences that I’ve highlighted are the importance to investors of process and speed, the potential for repeat business, and the less rate sensitivity. Still, the BPL space is easier to learn than many expect, and often less complicated than conventional lending.

MBA NewsLink: Where does Constructive Capital fit in?

Ben Fertig: We are a wholesale capital provider focused solely on business purpose investor financing, serving the market through two asset classes – DSCR and RTL/Fix & Flip, and originated through our network. Today, we are working with more traditional mortgage originators than ever before, and that continues to grow.

More broadly, our financing is a subset of the overall non-QM market, though the business purpose space is really its own distinct segment. And we believe real estate investors are best served through the originator network.

(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Michael Tucker, editorial manager, at mtucker@mba.org.)