Meet Troy Smith, the founder and CEO of G1 Commercial Mortgage, a faith-based Private Credit Fund situated in the wealthiest African American county in the country, Charles County, Maryland. His firm is a direct lender that provides financing to real estate investors, and he is the first African American mortgage lender to delegate underwriting control over a $100 million warehouse line.
Troy established his company in the private mortgage market by establishing bank-alternative lending capital for mortgage products that would be difficult for consumers to get. They have established the first Mortgage Revenue Sharing Network (MRSN – pronounced mer-sehn). For the first time, a nationwide Private Credit Fund has promised to split the origination fees on a business-purpose mortgage transaction with anyone who spreads the word about their credit programs.
Yet, when analyzing Troy’s entire financial and economic perspective, this is only the top of the iceberg. He is also the Managing Partner of the Economic Rights Coalition of the United States (USERC or simply ERC). The ERC is a Private Credit Fund with a specific group of Limited Partners in mind. The limited partners will be a group of African-American-owned banks who will pool a portion of their funds to provide appropriate loan capital to firms and individuals who are frequently disregarded and underrepresented.
The ERC will invest in community infrastructure through land cultivation and the four (4) supplies – Food, Water, Air, and Energy – to establish a resource pool for individuals within the ERC system. General Membership will be granted to people who represent the communities that the ERC will serve. G1 Commercial Mortgage will join the ERC as a Limited Partner to provide mortgage underwriting support and liquidity stability.
But it doesn’t stop there. Smith is actively involved in the Charles County community. He is currently collaborating with the Department of Economic Development to establish a Community Development Company (CDC). The CDC will function as a Business Credit Fund as well as a Business Training System. Local Charles County financial institutions will form a coalition to pool funds inside the CDC to aid in the growth, strength, and support of local businesses. The County is working with Troy Smith to pursue the county’s first-ever Federal Credit Union Charter. The Federal Credit Union will act as a cornerstone of financial strength for the African American community at large.
Troy comments, “It is time to increase the overall economic education of the African American as a general people. We need to understand that we have the power to change our current status. We do not need a handout from anyone outside of our own communities. We must arouse the consciousness of the whole of human society around the very issue of general equality. Inequality and disparity for one is inequality and disparity for all.”