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Johny Fernandez: What does it
mean to back door?

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Sean Murray: Okay, what does it
mean to back door? This is not a

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professional industry term, but
it's one that's thrown around a

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lot. As kind of industry jargon
for something negative that

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happens. The back door is
essentially if you send a deal

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into a funding or lending
company, and you're the broker

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and you're like, Hey, here's my
file, please approve it. And

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they do something sneaky with
that file, and they secretly

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refer it out to another broker
that that broker can try to get

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paid off of it, or they broker
it out to someone else and don't

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tell you, that's called the back
door. Basically, you're sending

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the file in the front door
saying please underwrite this,

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please approve it. And then the
funder or lender is doing

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something bad with it, probably
not telling you about it and

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shopping that file out somewhere
else. It's going out going into

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the front door, slipping out the
back door and going to where

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it's not supposed to go. People
call that backdooring it's not

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what you want to have happen to
your deal. It's something you

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got to be wary of in this
industry and do your due

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diligence but that's what
backdooring is all about.