GreenSky Credit has emerged as one of the most formidable startups that the fintech industry has seen over the last 20 years. Founded in 2006 by veteran entrepreneur David Zalik, the company has followed a radically unique strategy of creating value through making already existing processes frictionless and more widely available to consumers. As Carl Icahn once noted, the most money is often made doing the simplest things. While the technology that drives the GreenSky Credit platform is hardly simple, the business model is what Adam Smith or David Ricardo might have come up with if you told them how financial technology could be used. GreenSky Credit is an avowedly conservative and traditional means of creating big value for clients.
A deal where everyone walks away happy
The brilliance of Zalik’s vision for GreenSky Credit lies in a simple maxim: The best deals are the ones where everyone walks away a winner. Zalik first concentrated on home remodeling projects where the homeowners didn’t have the cash on hand to finish their projects. Cash shortfalls have always occurred in the home renovation business with surprising frequency for the same reason that commercial real estate developers often rely on sophisticated and multifarious financing structures. The simple fact is that construction is expensive. And when homeowners underestimated the cost of their projects, which they often did frequently and to a severe degree, the deals often fell through before the first nail was driven.
Zalik saw that as not only a huge loss for the contractors but also as a serious loss for the homeowners themselves. That’s because the majority of home renovation projects that are carried out in high-end homes add far more to the value of the property than the cost of the project itself. Zalik saw that these often-prime borrowers, who usually have FICO scores in the 800-plus range, could benefit enormously from an instant point-of-sale loan to complete their projects, a form of bridge financing for retail customers. At the same time, the contractors got jobs that never would have materialized. And the banks extending the loans get prime borrowers on their books, improving their financial position.
Deciding to venture into any entrepreneurial project is the ultimate investment decision a person can make. For growth and success in any start-up, a proprietor needs to be guided carefully through mentorship programs and conferences. Running a profitable venture requires internal toughness, awareness of the surrounding environment, and concentration. Recognition of the surrounding environment allows one to understand the competition quickly and helps plan on ways to manage the competitors. One man that has mastered the art of making something out of nothing is Sahm Adrangi.
Sahm Adrangi is a graduate of Economics from the prestigious Yale University. His career in the finance industry began at Deutsche Bank, immediately after graduation. After enjoying a successful stint at the finance group, Sahm got an opportunity to work for Chanin Capital Partners, a firm renowned for its expertise in restructuring. His primary duties were to offer professional advice to clients facing financial issues including bankruptcy. After Chanin Capital, Sahm would later enjoy a stint as an investment analyst for Longacre Fund Management.
With a vast wealth of experience acquired from the various financial institutions, Sahm Adrangi was ready to go solo. In 2009, he launched Kerrisdale Capital Management, a firm that specializes in investment management. In the beginning, Sahm Adrangi main objectives and roles as both founder and CIO were to raise capital, penetrate the market, and maintain steady and relevant growth. Starting with assets of less than $1 million, Sahm has seen the company grow and increase its assets portfolio to over $150 million.
The short selling sector is volatile and calls for someone with an exemplary ability to foresee future market changes and understanding of the market. Sahm Adrangi is one of those people. He has ripped big and has made a name for himself for being an excellent short seller known for making cautious and timely decisions. Sahm is an author; he publishes his research and analysis with an objective to help investors and the general public to make sound decisions especially in matters of finance. His research is available on several third-party finance sites, his website, and on his social media pages.