I met CEO Bruce Rodgers at a Los Angeles Conference. It turns out we both live in Tampa, so we had a chance to learn about his company over the holiday. I could not resist putting an "O" at the end of LMFA, which is Bruce’s stock symbol, and the name of his company. I thought the LMFAO title would grab readers as we put the story out over Social Media, so Bruce hope your OK with this. Go Bears!
LM Funding America (LMFA) focuses on operating as a specialty finance company through holding interest in LM Funding, which provides funding to non-profit community associations primarily located in the state of
The company offers funding to associations by purchasing their rights under delinquent accounts that are selected by the associations arising from unpaid association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each association’s financial needs, including under its New Neighbor Guarantee program. The company was founded in 2008 and is based in
Basically, what LMFA does is purchase Condo Association receivables at a huge discount, which is a really cool business, and certainly the first I've ever heard of in the public company space. They went public in 2015 and have held in nicely as they get their footing.
Their approach is simple: we buy problems. It is their way of saying you shouldn’t have to pay association fees for those who fail to live up to their responsibilities. So they came up with a straightforward solution to delinquency that works, and even offers less risk.
Your association pays nothing out of pocket to LM Funding, and they pay all legal fees and costs on behalf of the association. You never pay anything. Period! Moreover, LM Funding assumes all risks associated with collecting delinquent assessments. Even in the unusual event that they were somehow unsuccessful in collecting the delinquent assessments, your association will never have a legal bill and the association gets to keep all of the money.
Instead of waiting for expensive collection attorneys to return a small portion of your unpaid dues, LM Funding gives funds directly to your association – immediate capital that allows you to pay bills and operate your business without getting involved in the hassles of collection. LM Funding will even guarantee your association will receive its budgeted revenues on a current basis going forward. They work with your association’s lender to guarantee payment of your loan.
Rather than charging for time - as collection attorneys do - LM earns its money by aggressively managing the collection process for you, and only after purchased delinquent accounts are successfully collected. You assign the right to collect the debt, and they manage that process so you don’t have to. However, they are not a law firm or a collection agency. To collect the money you’re owed, they employ law firms that specialize in collection and they work directly for you.
Your association pays nothing out of pocket to LM Funding, and they pay all legal fees and costs on behalf of the Association. You never pay anything. Moreover, LM Funding assumes all risks associated with collecting delinquent assessments. Even in the unusual event they were unsuccessful in collecting the delinquent assessments, your association will never have a legal bill and the association gets to keep all of the money.
What an interesting concept...LMFAO very easy for me to recall this stock symbol LM Funding LMFA!!!
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