Lawsuits, Paperwork and Interest Rates: Do Mortgage Joint Ventures Have a Lifetime?


This is the second part of a two-part series on joint ventures in the housing industry. To read the first part of this series, go here.

On a sunny and serene fall afternoon, Chicago’s Ravenswood neighborhood featured leisurely socializing on the outdoor patios of breweries, cyclists of all ages, and, hidden along elevated train tracks, the mortgage lender’s head office. Guaranteed rate.

Founded in 2000 by its current CEO, Victor Ciardelli, Guaranteed Rate has the Chicago brand recognition after having paid $ 2 million per year to rename the place where the White Sox play baseball. The lender’s head office has a side entrance which houses three other companies: Guaranteed rate affinity, Appropriate rate, which is the Guaranteed Rate / @ properties joint venture, and Point of origin, the future Guaranteed Rate / Compass joint venture.

Ciardelli has put in place a literal side door of joint ventures, much to the chagrin of its competitors.

“It’s not like we’ve just announced a guaranteed rate deal like everyone has to have some kind of guaranteed rate,” eXp CEO Glenn Sanford said on a call from results in August discussing the partnership with Kind Lending. “It’s actually something much more strategic.”

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