P r i va t e L e n d e r O f f i c i a l
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o f
A . A . P. L .
The Journal of the American Association of Private Lenders Volume 4 - Issue 1
The Art of the Deal - 2014 first ever annual spring conference in Kansas City. #GotMoneyNeedMoney2014
Got Money? Need Money? - Q &A with Matt Benson and Gabrielle LeVota
Next Generation Hard Money Lending - Andrew Pollock
Got Money? Need Money? Kansas City April 29-30, 2014 www.AAPL-PREIMA.com
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C on t e n ts : In This Issue: Viewpoint Got Money? Need Money?
- Matt Benson and Gabrielle LeVota (pg.3)
Industry The Next Generation of Hard Money Lenders
Aging in Place
- Abbey McLaughlin (pg.25)
- Andrew Pollock (pg.6) IRS Regulation Could Ease RE Tax Burden
Tips for RE Investing with Hard Money
- James Rincon (pg.28)
- Stephen Michael White (pg.13) Invest in Canada, eh!
Importance of Goal Setting
- Robin Aldridge (pg.31)
- Ian R. McSevney (pg.16) Funding their Flips
Membership
- Paul Yevzikov (pg.21)
2013 Membership Directory - Board of Advisors and Founders - Active Lender Directory - Member Service Provider Directory (pg.38-45)
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V iewp o in t : Got money? Need money? Q&A with the Executive Directors of AAPL and PREIMA about the spring 2014 first annual conference
- Matt Benson and Gabrielle LeVota
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their busy schedules to answer a few questions about what to expect from the spring event.
here is much that is new in this New Year. The new Executive Director of the American Association of Private Lenders, Matt Benson, is working on a What prompted the idea for “Got Money? major initiative to bring together private lenders and Need Money?” real estate investors. Working in conjunction with the Professional Real Estate Investors and ManagMatt Benson: We have lenders who are passioners Alliance (PREIMA), AAPL will co-host “Got ate about rebuilding communities and they cannot Money? Need Money?” a two day conference and do that alone. business opporCommunity “Matt Benson, Executive Director of American Association of tunity summit. banks are dying Private Lenders, and Gabrielle LeVota, Executive Director of The conference and are unable to the Professional Real Estate Investors and Managers Alliance will provide fund many deals took time out of their busy schedules to answer a few questions outstanding due to the regulaabout what to expect from the spring event.” information tory environment. to help you do For that reason, business better. and others, private lending will continue to grow. We At the same time, it offers two days of legitimate deal saw an opportunity to bring people together from making opportunities. The spring conference will across the country to help facilitate transactions and take place April 29-30 in Kansas City, Missouri at the to help sustain growth for our members. convention center downtown. Matt Benson, Executive Director of American Association of Private Lenders, and Gabrielle LeVota, Executive Director of the Professional Real Estate Investors and Managers Alliance took time out of
Gabrielle LeVota: That is really what makes
this event so different from all of the others. It is important for both of us to listen to our members and event attendees. We have spoken with the lenders and spenders at other industry events.
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Crossroads Art District. There is so much to see and do if you have downtime and spring is a beautiful time of year here.
Our industries are largely built through entrepreneurs. We are providing a place for entrepreneurs to learn and grow from reputable industry veterans, while also providing genuine deal opportunities.
GL: Kansas City is centrally located, and the airport
What type of attendees are you looking to attract and what are you hoping they can take away from this experience?
is very user friendly. Other than that, Kansas City is home to both of our companies and we thought it might help attendees to better understand our culture and where we come from.
Just one more question – Where do you get your BBQ? MB: Kansas City has a lot to
MB: Our conferences are
known for having high caliber, quality presenters and attendees. That will not be any different. We are just bringing two different types of people together – those who need to borrow money and those who are looking to lend money. By doing this, we will be adding a third crucial element to the conference – aside from education and networking – which is deal flow.
choose from. I personally like Fiorella’s Jack Stack BBQ, but almost anywhere you go is going to be spot on and true to the well-know flavor of KC.
GL: Besides the great food,
which there will definitely be plenty of, we hope to create a great experience for new contacts and help them get deals made.
GL: It is not something
you will find anywhere else right now. We want every single attendee and sponsor to walk away with relationships that will strengthen their business both in the immediate future and for long-term growth.
You have had events in cities like Las Vegas, Washington D.C. and Austin, TX. Why did you choose Kansas City for this conference? MB: The Kansas City Convention Center is located
in the heart of Kansas City. It is just a few blocks from the Power and Light Entertainment District, the new Kauffman Performing Arts Center and the
This is going to be a spectacular event, filled with so many great opportunities! Tickets are available for purchase right now and early bird registration prices will apply until Feb. 28 so get your tickets early. Discount bundles are also available, allowing you to purchase not only admission to the spring conference, but big savings on a PREIMA and/or AAPL annual membership. For ticket pricing, purchasing and conference information please visit www.aapl-preima.com or follow hashtag #GotMoneyNeedMoney2014 on Twitter to follow conference conversation and buzz.
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I n dus tr y : The next generation of hard money lenders “AKA: Alternative Financing�
- Andrew Pollock
T
he evolution of hard money lending has taken a long and fragmented path with the product menu varying across the spectrum from payday, car title, toxic prime, signature loans, etc. In retrospect, long gone are the loan officers with matching white shoes and belts, leisure suites and pinky rings, and I write this comment with all due respect. The market demands have shaped the product strike zone and overall wheelhouse. Each and every economic cycle, interest rate environment, and credit/risk window has had a direct impact of what the market wants and what it will provide. On the backdrop of the financial crises, we have seen the demand for hard money financing grow and the depth/breadth of collateral types expand. Along the same lines, we have seen conventional financing retract and conforming lending options narrow, thus becoming restricted. This sets the stage for responsible lending opportunities and the continued evolution of hard money lending into mainstream financing and a common place funding variable. I propose that the term hard money no longer fits today’s marketplace and that we live in an environment that resides best with alternative financing.
Technology / Internet
The access to alternative financing options has grown dramatically due to the Internet. Leveraging any one of the Internet search engines provides a window into a wide array of alternative lending entities. By simply typing hard money on Google, an expanded list of hard money originators, brokers, aggregators and service providers is instantaneously produced. The Yellow Pages and associated dialing for dollars has been streamlined via the Internet. Technology based origination tools have increased the speed of the origination transaction. The basic process of qualifying credit, collateral and capacity has become extremely efficient. While there is still work to be done, the origination process is headed in the right direction - someday soon the mortgage fulfillment process will work at the speed of you!
Government Sponsored Entities
Fannie Mae, Freddie Mac and Ginnie Mae are playing smaller and smaller roles in the real estate finance sector. Maximum loan amounts, credit guidelines, collateral types/requirements and overall lending authority for the GSEs are being reduced. Yet, the demand exists and within many dormant lending venues, the demand is growing with an
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insufficient supply of funding options. The need for alternative financing will without a doubt be met outside of the FHFA oversight. There have been unfounded claims that the capital markets will come roaring back to fill the void... We shall see.
This due diligence starts with accurately determining the value of the property. By doing this you will minimize your risk and maximize the return on your investment. We find that using a broker price opinion or BPO is the quickest and most effective way to determine value on a single-family property, condominium or duplex.
Inventory of Properties
The inventory of bank owned properties appears endless. Most, if not all, have listing prices below their original sales price. In addition, a respectable percentage requires some form of rehabilitation. As no surprise, this screams of opportunity, as property values have stabilized and in many markets housing values are improving. There have been discussions and illuminations around a generation of renters that will need decent housing. This demand can easily be fulfilled by simple and straightforward real estate entrepreneurialism.
Entrepreneurial Spirit
Having a complete BPO is essential to setting accurate value, which helps minimize negative effects in case of loan default. Therefore, using a reliable source to obtain your BPOs is almost as important as the value itself. You want to use an experienced agent who knows local market conditions that affect value. Many times, for example, comparable properties one block away can create a big difference in value. Look for a BPO company that employs licensed realtors or appraisers and that checks each BPO for quality before providing it to you.
The entrepreneurial spirit within the real estate dealmakers is alive and well. Never underestimate the intelligence, hard work, perseverance and commitment of the conglomerate of real estate investors, developers and moguls. It is through this consolidated group of real estate professionals that things happen. On the horizon rests consistent lending protocols, continuity loan packaging and where hard money is not considered the lending option of last resort.
It is important that you understand the BPO and it is smart to have a real estate professional look at it as well. Ultimately, the BPO is an opinion of value and having a second pair of eyes can provide additional insight or verification. Here are some helpful tips from Green River Capital to use when reviewing BPOs.
Comparable Properties
WDB Funding: What We Know In Hard Money Lending (AKA: Alternative Financing)
• Within 1-2 miles of the subject property (the closer the better).
We have quickly understood that to be successful it is essential to have a complete understanding of two things: the property and the borrower.
• Same property style (if subject is a two-story, comparable properties are two-stories).
No two properties or borrowers are alike. Having detailed knowledge about each enables you to make wise and efficient lending decisions to increase the bottom line for yourself, your friends and family, or your investment funds.
• Same neighborhood or neighborhood class.
• Same or similar location (if subject has lake view, comparable properties also have lake views). • Comparable properties sold within the last 6 months (12 months if market is slow).
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• Same condition or adjustments made to comparable properties so they align with the subject property (subject has 4 bedrooms while comparable properties have 3 then a positive adjustment is made to the comparable properties).
Suggested Repairs
•Agent notes any repairs and estimates repair costs. •Repairs typically are made to bring the property to the neighborhood standard to get the highest value possible. • Compare suggested repairs with the borrower’s repair schedule. • Verify validity of repairs by reviewing property photos (agent notes exterior paint, but property has vinyl siding, for example).
Agent Remarks
• Review agent remarks on market, neighborhood and property condition to provide you with a complete picture of marketing conditions. • Consider MLS data and the days on market. If a property has been on the market for 300 days or more then you can use that as a market indicator. Also, consider the cost of purchase and cost of repairs to determine whether the borrower can afford both. At WDB Funding, for example, we are willing to loan up to 65 percent of the property’s as-is value or the value of the property in its current condition. Most lenders base their loan amounts on the percentage of the purchase cost, which provides less money to borrowers to use for repairs or closing costs. Due diligence continues with running credit checks on all applicants. Typically, traditional lenders use credit checks to determine approval. As a hard moneylender, we are collateral-based so we are not using the credit check for approval, but instead to provide
background on the borrower’s history. Use a credit check as another tool to help you evaluate the risk in lending to a specific borrower. We find a bad credit score does not mean the applicant is a bad borrower. Here are some helpful tips to use when reviewing credit checks: • Verify the borrower is not in default on current home. If the borrower is unable to make house payments then they are most likely unable to make payments on an additional investment. • Check for any current bankruptcy filings and IRS liens since they also factor into the borrower’s history and potential ability to repay a loan. • Look for any late payments on child support or alimony to provide clues to the borrower’s moral compass and commitment to meeting responsibilities. • Check the borrower’s ratio of credit versus debt to identify the borrower’s other payment obligations. We find evaluating these factors and looking at a complete picture of the property and the borrower are the best way to make sound investments, minimize risk and also get the highest returns. Contact us at loans@wdbfunding.com with any questions or if you have needs that we can help you resolve.
About WBD Funding, LLC
WDB Funding, LLC is a direct national private moneylender on commercial and residential properties that provides fast and flexible asset-based lending to borrowers that do not meet today’s limited conventional requirements and underwriting guidelines. WDB Funding, LLC is a direct lender who has the capabilities to make quick lending decisions and is able to streamline the underwriting process, pro-
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Andrew Pollock / President & Chief Executive Officer, WDB Funding, LLC
viding the borrower an immediate response to their loan request. We understand time is of the essence on all deals.
WBD Funding provides money for the following purposes: • Non-owner occupied purchase & refinance 1st mortgages • Investors of residential assets and rehab loans
Andrew Pollock, is the President and Chief Executive Officer of WDB Funding, a nationwide Alternative Funding / Asset Based lending company. Mr. Pollock, is responsible for the executive management and strategic direction of all lending directives, operations and funding fulfillment.
• Residential, multi-family, mixed use and commercial loans www.wdbfunding.com
le!
ccountab Hold them a
New IRS regulation could ease real estate investor tax burden - Stephen Michael White
T
he IRS guidelines on tax deductions for real estate investors http://www.rentprep.com/blog/ make-most-lucrative-real-estate-investment/ are notoriously complex, with a lengthy and intricate method of determining depreciation for expenses from improvements, renovations and repairs on your tax return. However, a new regulation that went into effect on January 1, 2014 now makes it easier for you to deduct qualifying expenses instead of depreciating them. IRS Reg. 1.263(a)-3h, known as “safe harbor for small taxpayers,” is definitely an advantage for those who own investment properties.
What’s New?
Until this new regulation, real estate investors had to complete lengthy and complicated paperwork that involved depreciation of property improvements
over a number of years. You were forced to justify whether an expense was a repair, an improvement, or other category, and decipher how the IRS wanted you to treat that expense. Under this new law, you are now able to deduct qualifying expenses for improvements, renovations, repairs and upgrades. The result is an immediate impact on the amount of taxes you pay, rather than waiting for the impact over a dozen years due to depreciation. Examples of expenses that qualify include replacing damaged or worn systems, cost of inspections, improving the property with energy efficient upgrades and expenses used to bring a property up to code. However, not every real estate investor’s expense list will qualify.
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How It Works
The IRS has set up restrictions on who can take advantage of the safe harbor. It is designed to deliver the most benefits to small to mid-size real estate investors, allowing those who qualify to take a direct deduction from taxable income. Note that the deduction limits apply on a building-by-building basis.
Here is how to determine if you and your property qualify:
1. Verify that your gross receipts total less than $10 million over the past three years and your property cost is less than $1 million.
2. Calculate the total amount of the past year for
maintenance, improvements and repairs. If the total is less than $10,000 you may be eligible. If it exceeds $10,000, you do not qualify.
are eligible for the deduction. If they are more, you are not eligible. To take advantage of this new rule for 2013 tax returns, you must keep track of annual expenses for improvements, repairs and maintenance for the entire 2013 year. When it is time to file your taxes, you will need to fill out an election form. Assuming you qualify, you will be able to deduct the entire amount of the expenses from your 2014 tax return. The new law also allows property owners like you to apply the deduction retroactively for the previous two years (2012 and 2013), so if you have completed major repairs, upgrades or other improvements recently, it might be well worth it to amend those tax returns and see if the safe harbor affects your returns in your favor.
Applying Safe Harbor
3. Figure the base cost of your building and calculate 2 percent of that.
Here are some scenarios to demonstrate whether the safe harbor applies to specific real estate investors and property owners.
4. Choose the lesser of the two figures from Step 2
Example A: If Jeanette owns a rental property
and Step 3.
5. If your total expenses for repairs, upgrades and improvements are lower than the lesser figure, you
(cost is $400,000) and made improvements to the property that totaled $5,500, she would qualify for safe harbor and deduct the entire amount. This is because the property costs less than $1 million, her gross earnings were less than $10 million over three
years and the total expenses she is claiming were less than $10,000 and 2 percent of the building’s cost ($400,000 x .02 = $8,000). Jeanette can deduct the entire $5,500 on her 2014 tax return.
Professional Real Estate Investors and Managers Alliance
Example B: Thomas’ rental property has
a $275,000 unadjusted basis and he spent $9,300 on improvements and repairs in 2013. Thomas is not eligible for the safe harbor, even though his gross receipts are under $10 million and the property is worth less than $1 million. Thomas may seem to qualify to claim the deduction because the amount he wishes to claim is less than $10,000. However, his repairs and improvements exceed the 2 percent ($275,000 x .02 = $5,500). The regulation states that the taxpayer must go with the lesser amount ($10,000 or $5,500, in this case). Therefore, he cannot deduct the amount using the new regulations. There are other ways to include the cost of improvements on the tax return, but Thomas does not qualify for safe harbor. For those of you who are constantly seeking out ways to reduce the income tax on the profits from your real estate business http:// www.rentprep.com/blog/homeownership-investment-or-expense/, the new IRS Reg. 1.263(a)-3h will be a welcome change. It lets qualified real estate business owners like you avoid the complicated IRS regulations on deducting improvements and repairs to business property and opt for the more immediate benefits. Stephen Michael White is the co-founder and CEO of RentPrep, a company of solutions and tools designed to help landlords succeed. He is a frequent speaker for real estate and landlord associations around the country,
n o i s i V
PREIMA – Professional Real Estate Investors and Managers Alliance – is dedicated to providing a broad range of strategic resources to residential real estate investors and professionals. We are an alliance of industry leading companies working to elevate the performance of our membership and our industry. Our objectives are to help you grow, improve your revenue, and sustain your business.
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913-888-7355 www.preimaonline.com
Invest in Canada, eh! - Ian R. McSevney
A
s a mortgage investor have you ever considered diversifying your portfolio and investing in mortgages against Canadian real estate? The Canadian Real Estate market is vibrant with high quality housing nal Real Estate Investors Managers stock, Alliance and continues to grow with positive market data. The Canadian market has seen new highs on the average price of a home, pushing up by almost 10 percent. Larger centers are experiencing high demand with low supply, such as Calgary and the low-rise market in Toronto. Canada Mortgage and Housing Corporation is Canada’s national housing agency. They serve as the primary mortgage default insurer and the agency provides research and support to the Canadian mortgage industry. The following graphs display impressive data on the
health of the Canadian market, with average mortgage payments and debt ratios near or below longterm averages. Delinquency rates are on a downward trend and Canadians are showing good equity positions in their properties. One of the ways that US investors can participate in the robust Canadian real estate market is by investing into the mortgages that support the real estate market. There are several options available for investors such as direct mortgages, syndicated mortgages and purchasing shares in mortgage investment corporations. Although some of the language may be different, there are strong similarities between the US and Canada when it comes to how a mortgage works. In Canada there are legal protections in place for the mortgagee, much the same as in the US with court enforceable remedies to resolve non-payment scenarios.
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Direct mortgage investments are exactly as they sound – one investor is funding the entire mortgage. These are considered private mortgages and the regulations vary from province to province. In Ontario, Canada’s largest and most diverse economy, a private mortgage is required to be brokered by a licensed mortgage broker. The mortgage broker can source and originate the borrowers, as well as provide advice, with the ultimate decision to fund being left in the hands of the investor. These mortgages may be first or second position against a subject property with the borrower requiring private funding for varying reasons. They may have non-traditional income sources, bruised credit, newer credit or they could be looking for a flexible short-term solution. House flippers and small developers, along with real estate investors, often utilize private mortgages to meet their goals.
mortgage investing. MICs are required to meet certain criteria such as investing a minimum of 50 percent of their capital in residential mortgages and having a minimum required number of shareholders. Changes in mortgage legislation during recent years in Canada have contributed to a proliferation of MICs. MICs are typically lending in the niche areas that are underserved by the larger institutional lenders. As a pooled product MICs are a lower risk option over direct mortgage investments and syndicated mortgage investments. While being a ready-made option for a US investor who may not have a relationship with an existing Canadian Mortgage Broker or Agent, MICs must invest into mortgages charging Canadian real estate only. However, they are permitted to accept share capital from foreign investors.
What can you expect to earn?
Syndicated mortgages offer investors the ability to invest with one or more additional lenders to share in the risk and associated returns of the mortgage. The lender has all the same rights as they would normally have, and would be required to make the decision to invest on their own. A licensed mortgage broker is typically required to broker the transaction and can assist with origination of these opportunities. Syndicated mortgages may be first or second position mortgages with the borrowers requiring private funding for reasons similar to what have been outlined for direct mortgage investments. A third option for investing in Canadian mortgages, and the option that seems most suitable for US Investors interested in tapping into the Canadian market, is to purchase shares of a mortgage investment corporation, often referred to as a MIC. http://www.altmoremic.com/What-is-a-MIC.html
Earnings related to private mortgage investing are tied closely to risk along with other variables playing a role. Canadian borrowers who are taking out private or hard money mortgage loans, as they are often referred to in the US, will pay higher than average rates. Investors can expect to earn 8-12 percent on direct and syndicated mortgages, depending on position. If the mortgages are second position mortgages the rate of return can be in the 10-16 percent range.
MICs are special status corporations under the Canada Income Tax act and are structured as a flowthrough investment vehicle, similar to an income trust. MICs are essentially a mortgage pool product and are a more passive and managed approach to
NOTE: If you are an investor looking to diversi-
With mortgage investment corporation shares, depending on the risk profile of the MIC and the type of deals the MIC intends to service, the rate of return can vary, with many MICs falling in the low double-digit returns. Private mortgage lenders can also earn a lender fee, further increasing the total return on investment. fy your portfolio and are interested in investing in Canadian mortgages please contact me directly. I am an experienced mortgage professional. I completed my education at the University of Windsor and im-
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mediately began a career in the financial services industry, where I have worked in roles of increasing responsibility. In these various roles I have gained a vast array of experience in mortgage lending, working across the industry from a consumer credit company to a Schedule 1 Bank, along with various roles directly in the mortgage broker channel. I am a recipient of several Volume awards from the Mortgage Insurer Genworth Financial. Combining my previous experience with my current role as an Independent Mortgage Broker, I have participated in more than $400 million of funded mortgages. I am currently practicing in both commercial and residential mortgage financing as a MIC Manager, as well as the Principal Mortgage Broker of a boutique style brokerage firm in Ontario. I look forward to serving your Canadian mortgage investment needs and would be pleased to provide you with some information on our upcoming US Securities Issue under SEC Regulation D, Rule 506 (C).
RentFax bridges the gap between data and decisions. With simple input, industry leading data and analytics, we provide unbiased feedback to guide your residential real estate investment options.
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Fund their flips?
Thinking of lending to a professional rehab company to fund their flips?
- Paul Yevzikov
Some points to consider for newer private lenders
You have seen them everywhere. You probably saw one at the last REIA or investor club you went to. I am talking about companies that are out there flipping houses, and are looking for YOUR private money to fund their next deal. It is safe and secure, how can you lose?
Sometimes these investments are a smart, convenient way to put your capital to work in responsible hands while getting a high return. Other times, they are a disaster, and well-intentioned private lenders end up walking into a situation that could quickly turn against them. If you are a less experienced private lender, here are some key points to tell the good apples from the bad ones: • You must recognize what you are getting into.
• What are the warning signs you need to look for? • Catch yourself when falling victim to “wishful thinking”. • Do not shortcut due diligence... EVER! • Follow best practices when making the loan, NOT what your borrower considers to be convenient for them.
First Thing is First
You have to recognize what you are getting into. Essentially you are entering into a position of trust with the company. You are relying on the company to give you the information regarding each deal, without having to verify everything for yourself. You are also trusting their ability to get things done. Generally what you are doing is committing to a company that
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you will be the private lender when they have their next rehab deal. Although you usually can (and should) do as much homework as you can on each individual property before you write a check, your ability to do that effectively is typically minimal. What you are really doing in these scenarios is investing in the company and the PEOPLE behind it, and their ability to effectively purchase and reposition a real estate asset profitably.
Warning Signs:
If you are thinking of becoming a private lender with a professional investment company it could be a very profitable decision, however, the best thing you can do is start the relationship off slow and walk before you run. This consists of an “informational gathering” phase where you must be able to collect all the information and due diligence on the company asking for your trust and your hard earned capi-
tal. Many times, especially with younger companies, they are set up as “sales machines”, where you only get attention long enough for them to determine if you are ready to write them a check now, and if not, you are put on the backburner. Here are some warning signs to look out for in your experience speaking with these companies: • You are asked to write a check to the company account to be held for future purchases. You should be investing in one property at a time, OR if you are investing in a fund, then you should go through a process of receiving all of the subscription agreements and other paperwork well in advance. • You are not given all the paperwork far enough in advance so you can review at your leisure. • The loan documents or subscription agreement are very basic, or have lots of loopholes for the borrower.
• You feel pressured or hurried to make an investment. You get the feeling they become condescending or inconvenienced by your asking a lot of background questions, or they demonstrate lack of patience. Believe it or not this actually happened to me once with a very large single-family investment company in the Midwest. After the first few minutes on the phone with a company, they got tired of me asking basic due diligence questions and told me they only want to deal with “action takers”, which clearly was not based on my questions... That is a sure sign to run for the hills.
Catch Yourself in Wishful Thinking
Investing money safely takes some thinking, and most people do not want to think. When they hear of a supposedly reputable company rehabbing dozens of houses at a time that will pay you 15 percent annualized return on your money, sounds like a dream come true! You see the company on stage and they have PHOTOS of houses they have done… what other research do you need, right? The process generally goes like this: somebody first sees a company present a 90 minute speech and some case studies at an investor meeting. After you get their info and follow up, after a few more conversations you are sending them a loan for five or six figure amounts. Here are the major advantages of investing with these types of companies: • If you find a reputable company, you have found a place for LIFE where you can safely park your money for favorable returns. You usually can invest nationwide, as these companies are everywhere. • You get to take advantage of the company’s established experience, systems and economies of scale. • Once they have proven themselves, you are generally comfortable increasing the investment size as much as you want.
• Because you usually trust the company and people behind it, you can generally skip a lot of the basic due diligence on each transaction (not that you could do it thoroughly anyway).
Due Diligence
You need to be aware of the four main risks that you are being exposed to in this scenario: • You trust everything they say about the investments. A general lack of information to verify each individual transaction is a huge risk. For effective due diligence you need to know exactly what the asset will be worth fixed up, how much the repairs are, how long they will take, and what the maximum safe acquisition price is to ensure a healthy profit. The bottom line is you are relying on the company borrowing money from you to tell you all these values, and there is no real way that you can verify it all. Generally your due diligence info is very limited. Sure you can go on Zillow and see the range the house should be worth, maybe you can even get on MLS and call some realtors, but how will you verify if the house really needs $70,000 vs. the $50,000 of work they claim? Your main job is to do your best to verify if what they are claiming falls within the range of what you can uncover. • Borrower does not have “skin in the game”: Generally the company will want you to fund 100 percent of the purchase price AND the rehab cost. Common sense dictates it is always nice when someone else has skin in the game so the risk is shared to a larger extent. • Higher than usual loan-to-value ratios: Safety margin is a key concept, and many hard money and private lenders are hesitant to lend more than 60-70 percent as an “all in” cost on a project. However in many of these scenarios the actual LTV is as high as 80 percent on deals, often eating away at that all-important safety margin.
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• Lack of real options in event of default: Many professional investment companies have investors all over the nation, which is convenient because people are not limited to lending just in their own backyards. However, when all is said and done, the final and ultimate recourse you have as a private lender is to seize the asset if everything goes wrong. But what are you going to do with a half-finished rehab project in some other part of the country? This could present additional costs, delays, and logistical headaches if you now have to get that project done without the help of the company who started it.
Follow Best Practices
Here are the bare minimums you need to do when loaning money to a more professional investment operator such as a turnkey company or a professional house flipping operation: • Conduct thorough due diligence on the company itself. Speak with current and past clients, do a paid background check on the owners and for prior lawsuits, and also find out about the employees – how long they have been working there, etc. • Never disclose how much you are looking to invest until later in the process. Obviously you want to give them a general idea or range to be respectful of their time, but it is always best to be as discreet as possible
because they WILL treat you differently if they know you are an accredited investor, and it is best to see how they treat “non VIP” clients as a benchmark. • Have YOUR attorneys review all the loan documents. The key is to get unbiased and qualified opinions on the strength of the loan documents that are protecting your capital. Often times people skip this part altogether, or just use the legal team recommended by the people borrowing the money – that has conflict of interest written all over it. If you can find a good and reputable company that is actively rehabbing and flipping properties it could be a great place to park your money. There are plenty of reputable and experienced operators out there who would love to put your capital out on the street in a win-win arrangement, but use your common sense and these helpful tips to help you avoid the possible nightmare scenarios. PAUL YEVZIKOV – [New York City -- Contact: paul@paulyevzikov.com -- Tel (212) 390-1582]. Paul heads a boutique investment consulting firm, which researches and analyzes trends in passive real estate investment strategies for high net-worth individuals. Paul graduated from Carnegie Mellon with honors, and completed his first distressed property investment at the age of 23.
Aging in place
Make Your Rental Property Retirement Ready
- Abbey McLaughlin
F
or Christmas this year I headed south to visit my parents in their brand new humble abode that sits on the ninth fairway of a gorgeous golf course. Santa was extra good to me this holiday season, bringing sunshine, warm weather and a golf game two strokes under par – not to mention fewer family fights and a good excuse to escape extended relatives. But, as with anything else, the trip had its drawbacks. Regretfully I decided to take my pup to a local kennel “resort” while I was on my brief golf course getaway. Though the establishment was clean, the clerk seemed friendly, and it would only be for a few days, the hurt in Luna’s face as I turned to leave had me seriously questioning my decision to spend Christmas in paradise.
ing ashamed, my pocketbook actually took the brunt of the blow. I paid $50 per night for essentially a simple promise that she was being taken care of, but with no knowledge as to if that was actually the case. For all I knew she was cooped up in a kennel several sizes too small, munching on leaves and snow. It is one of the worst feelings in the world to leave behind a loved one, whether you are dropping off a dog at a kennel, your kids at a daycare or a parent in a nursing home, because ultimately we feel that nobody can take as good of care of them as we can. At least with a dog or child, you know that you will eventually be back to get them. Even if they are suffering, the worst they will endure is a few hours or days. But when dropping off a parent at a care facility, that is a permanent solution, and one that may seriously hinder the last years of their lives.
Aside from my dog feeling abandoned and me feel-
25
2011 marked the first year that the beloved Baby Boomer generation approached senior status, and with it only being the very beginning of 2014, we still have many more years to watch this largely populated generation grow older. It is well known that the Baby Boomers are hard working, independent, determined and will likely not want to consider the option of assisted living. The expense of remodeling a home to meet the needs of being able to age in place can cost a fortune if not planned for ahead of time, and money is not in abundance when considering a person living off of their retirement funds. This is where two parties can come out ahead. When purchasing or remodeling a rental property, consider what can be done to make the home suitable for a tenant who is aging. This way an individual who cannot afford to remodel their home, has an option for retaining their independence, and not be forced into an assisted living or retirement community. Those who still enjoy gardening, having family over for the holidays or letting their dog run around in the yard can have an alternative solution with your help. Many of these home improvements can benefit not only aging Americans, but also all different types of demographics. Ramps in and out of a home, for example, are great for wheelchair access, but also benefit young parents using strollers. Curbless showers are a great retrofit for aging in place, but also keep kids from stubbing their toes or tripping when getting in and out of the shower. Widened doorways make it easier for wheelchairs and electric scooters to pass through, but also make spaces seem more open, which many families prefer nowadays. The key is to keep the home from at all resembling a nursing home or hospital; it should still look chic and sophisticated, but be practical and livable for an aging demographic. The necessary changes can vary in price, but ultimately every addition will add value to the home. The fixes mentioned in the previous
paragraph can come at a reasonable cost, in addition to things like grab rails and task lighting. But you will want to consider even the more expensive alterations; it could really pay off. If there is already a bedroom on the first floor, that is always a plus, but if there is not, make one! Extra space lurking about the ground floor such as a large study or dining room can be easily transformed into a small bedroom. If extra space is unavailable, consider paying to add on a bottom floor boudoir. It is essential to install a working phone jack in the ground floor bedroom and make sure the closet is well lit. In the kitchen you will want to install non-slip floors and lower cabinets. Cabinet doors and drawers should feature “D� shaped pulls and handles for ease of use. If the kitchen is located directly next to the garage, it is wise to install a revolving pantry that can face either the garage or the kitchen. This makes it simple to load groceries into your home, directly from the car – reducing the risk of carrying heavy loads or tripping. As this beloved generation ages, we will want to do all that we can to keep them active, healthy and happy. Having a good, safe place to call home is an excellent step in the right direction. Making these simple home adjustments can make all the difference in the lives of so many of our loved ones. There is no way better way to start 2014 than investing in your properties and making them livable for all walks of life. Written by Abbey McLaughlin: Abbey is a graduate from the University of Kansas with a Bachelor of Science in Journalism and currently serves as the Multimedia Coordinator for 3rd Story Communications. 3rd Story Communications is a full-service marketing agency that specializes in working with clients in the real estate investment space.
26
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Top tips for real estate investing with hard money - James Rincon
A
hard money loan can be a vital tool for real estate investors looking to maximize their profits, complete more investment projects and minimize the amount of capital needed to accomplish their investment goals. Seasoned real estate investors know that using a hard money lender is the faster and easiest way to fund a real estate investment project when compared to relying on traditional financiers like banks. Typically asset-based hard money lenders are much more likely than banks to fund real estate construction projects and fix & flip projects, because bank regulators see construction loans as too risky for their heavily regulated portfolios. Most hard money lenders make loans at interest rates around 12 percent and charge anywhere from 3–6
points. These higher interest rates often make less experienced investors gun-shy, but the reality is, in a spec home or fix & flip scenario, a short term hard money loan at 12 percent or even 13 percent can generate much more profit for the principal investor than an equity partnership in most cases. Investing in real estate is an art, and there are many tips, tricks and strategies that successful investors employ to get their deals done and cash flowing. Here are some of the essentials of investing with a hard money loan:
1. If you want a fast close, you need plans
This happens all the time – an inexperienced investor puts a property under contract to close in two weeks. The investor contacts a hard money lender to fund the project knowing that, next to cash, hard money is that fastest way to close a deal, BUT the
28
investor has no plans, no specs and no budget. Lesson: Without plans, an appraisal cannot be ordered or even a BPO (broker price opinion). Without an appraisal or BPO, the lender cannot verify the ARV (after repaired value) of the project. Without an accurate ARV the lender cannot make the loan.
not need to sink a ton of cash into the deal, but be prepared to put some skin in the game for plans, engineering, an appraisal, an underwriting/loan commitment fee and, more than likely, lender points to close the loan.
2. Do not lie
4. Do your project through an LLC
It is common for borrowers to try to make themselves look “more qualified” for a loan than they may actually be, but what borrowers should realize is that hard money lenders are much more concerned with the value of the asset than they are with your personal financial history. Most hard money lenders do not even check credit scores. However, if you fail to submit the financial information the lender asks for, just because it is not as pristine as you think it should be, it looks like you are going out of your way to hide something from the lender, which reflects worse on you than subpar financials.
Lesson: The lender wants to make your loan! Be
helpful and transparent so that the lender can work with you to resolve any questions in your financial history. Do not sabotage yourself by lying.
3. Expect to have “skin in the game”
Many hard money lenders market their loans as having the potential to fund an investment at 100% LTC (loan-to-cost), meaning a borrower will not have to put a dime into the project. Although there are some scenarios where this is true, it is very rare, especially in hot markets like Austin, Houston or Dallas-Fort Worth, where the acquisition of quality investment properties is über competitive.
Limited liability companies, (LLCs) protect their owners and members from liabilities that present themselves during a real estate investment, and have an ideal structure for income tax purposes. LLC owners are only liable for debts of the LLC up to the amount of the member’s investment in the LLC. So if an investor starts an LLC with a $20,000 investment, and the LLC assumes a debt of $200,000 to fund a real estate project, the LLC’s owner is only liable for $20,000 of the LLC’s obligations. LLCs also subject their members to only one level of income tax on the profits and gains of its ventures. As “pass-through entities” a LLC is not itself subject to income tax – only the members are taxed on the profits and gains from the LLC, based on percentage ownership.
Lesson: Doing business through a LLC limits per-
sonal financial liability and avoids the risk of double taxation on profits and gains. In the real estate investment world timing is everything. When the iron is hot, investors need to have the ability to strike fast. With the right preparation, a hard money lender can close a loan in two weeks or less, and by following the aforementioned tips, you will minimize your time waiting for funding and maximize your profit potential.
Lesson: When using a hard money loan you will
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The Importance of Goal Setting Personally and Professionally - Robin Aldridge
I
t was 2007 when I was part of a management team that managed a $75 million mortgage pool that had 500 individual investors and an institutional line of credit. During the 2004-2007 years, the private money lender experienced significant growth of capital, loan originations and employees. However in August 2007, we saw some early signs of shakiness in the market and decided to suspend any new capital or redemption requests into the fund until we had a better idea on where things were heading. This ultimately became known as the Credit Crunch of 2007 and subsequently the real estate and lending markets crashed. I was on the front lines with the investors in our fund. It was the beginning of a challenging time and little did I know it was the beginning of a period that would last more than six years until we decided to
ultimately close the fund. I did not know at that time the depths the market would fall, but felt certain this was not going to be a flash in the pan. I sought professional help to prepare for the choppy waters ahead. The professional help could very well have been a therapist, psychologist or a psychiatrist for that matter, since we originated second mortgages in California, but at last it was a global professional peer advisory organization. The structure is typically 12-16 professionals in different industries that meet once a month for an all-day meeting session. Meetings consist of speakers, issue processing and other professional development practices. One of the most valuable tools I experienced while attending these sessions was structured goal setting. I will go into the process further, but I want to impart on you that you do not have to be in an outside group to enact goal setting with yourself or your em-
31
ployees. There are a number of published worksheets and reflective questions out there to get your juices flowing on goal setting, but starting with a review of the previous year’s good and bad highlights will likely lead to an informative discussion on what needs to be addressed for the following year. For instance, if there was an item that came in significantly over budget due to bad planning, what is the issue that needs to be addressed for the following year? A good example is IT. After winding down our fund, our need for live data and space, in theory, should have been reduced, but our IT cost did not go down. We addressed this issue by going through and identifying with our IT company what could be stored inactively and what needed to be accessed live (typically 1 years’ worth of data). A challenging part to IT is being able to speak the same language and identify needs with clarity. It ultimately came down what we defined differently as available data versus live data. Once we worked through that expectation, it resulted in a solution that reduced the monthly cost by 75 percent.
Our structure for goal planning is designed in three parts: Professional goals – Professional goals are about
you, your career and your leadership skills – in essence your personal professional development. This is not for your company or employer, but ultimately the company will benefit as well. As a private lender, is it your goal to become a speaker or expert on your niche product for an investor or borrower? What do you need to do to attain this goal? Create a case study or white paper? Join a professional organization? Network more or attend focused conferences? When going through this planning session a strategy will start to emerge and definitive tasks can be defined.
Organizational goals – Organizational goals
are tied to specific outcomes for your company. For a private lender, it could be to increase loan origi-
nations by offering new loan products or expanding into a new area. What would need to happen in order to accomplish this? Should I be researching licensing requirements and cost, borrower and real estate demographics and typical lending needs in the area? Breaking down the requirements to accomplish the goal is as important as the goal itself. In most cases if you have a strategic business plan in place, this goal will also be noted there but not in all cases.
Organizational goals – Organizational goals are
tied to specific outcomes for your company. For a private lender, it could be to increase loan originations by offering new loan products or expanding into a new area. What would need to happen in order to accomplish this? Should I be researching licensing requirements and cost, borrower and real estate demographics and typical lending needs in the area? Breaking down the requirements to accomplish the goal is as important as the goal itself. In most cases if you have a strategic business plan in place, this goal will also be noted there but not in all cases. The ultimate result a leader or company wants here is to empower the employees to think this way on their own. If an employee asks the question, “is this necessary” or “is there an easier way to do it”, that is a good step in the right direction. Or best-case scenario, they identify a problem and a possible solution to management. That is efficiency at its best. To bring this efficiency point home, our fund experienced immense growth within the first couple of years and we increased employees exponentially to fill the need. At some point, we had to take a breath and go through this exercise. We not only tasked the employees with documenting their work but also had them create visual flow charts. We provided education and technology to create the flow charts and more importantly cash incentives for the best work submitted. This exercise gave management the ability to know how the company was operating on a day-to-day
32
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basis, but also indicated where there were major inefficiencies. The inefficiencies were fixed by technology, process documentation (many employees did the same task differently), one-time cash incentives to employees that suggested and subsequently implemented expense reducing measures, and some reduction in force where needed.
Personal Goal – You may be able to guess what
this goal tends to be for most professionals – losing weight or getting healthier. Defining how this is going to be achieved along with an attainable goal number is critical for success. Other typical personal goals are volunteering, travel destinations, future planning like a will or trust, or creating more of a work life balance. A lot of professionals are high producing but also think things will stop without their input, so vacations can be consumed with checking email or calls resulting in added pressure from the family. Some professionals have to define checking email two times per week during a vacation. Having
defined parameters helps in keeping to the goal at hand. In December I completed my 7th annual goal setting planning session with my group for 2014. Thus far, my success rate in completing goals is about 75 percent. Over the years, I have adjusted my overarching goals to attainable size and realized which ones will require the most attention and time, then prioritize them accordingly. It is easier during the year to identify a goal that may be a candidate for the next year’s mission so that when November or December rolls around, you are not completely starting from ground zero. Lastly, it is important to do this in a group setting. It helps immensely having outside input on your goals and tasks when you are creating them. Different perspectives help vet the real goal at hand. You can increase revenue by gaining more sales or reducing unnecessary expenses. Point is, there may be many
answers in identifying the tasks to achieve your goal, and having the input of others is a creative and efficient way to find them. Following up on a monthly or bi-monthly basis with your group is necessary to ensure accountability and awareness. It is easy to get caught up in day-to-day operations and that is why breaking down the goals into specific tasks is necessary.
It is January 2014, the perfect time to start on a new path, now what are your goals? BIO: Robin Aldridge is currently the co-founding Partner and Owner of OnPoint Services, Inc. OnPoint provides consulting and fund administration services to private money brokers and funds. She lives in San Diego, is an active member of the California Mortgage Association, and American Association of Private Lenders, where she has given multiple presentations on fund and asset management topics for the private money industry.
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Board of Advisors and Founders Company Name
Contact Name
City
State
Membership Level
Affinity Group Management, Inc
Michael Wrenn
Kansas City
MO
Board of Advisors
Geraci Law Firm
Anthony Geraci
Irvine
CA
Board of Advisors/Founder
Investors Choice Funding
David Williams
Louisville CO
Board of Advisors
Pacific Residential Mortgage, LLC
Bob Cox
Medford
OR
Board of Advisors
Pride of Austin Capital Partners, LLC
David Owen
Austin
TX
Board of Advisors
Rollins Consulting Group, LLC
Jack Rollins
Ponce Inlet
FL
Board of Advisors/Founder
Sterling Pacific Financial
Joshua Fisher
Watsonville CA
Board of Advisors
1839Asset Management
Vincent Spreuwenberg
New York
NY
Board of Advisors
Full Throttle Ventures
Haider Nazar
San Francisco
CA
Board of Advisors
38
Active Lender Directory Company Name
Contact Name
5 Arch Funding Corp
Gene Clark
Newport Beach CA
Associate
Advance America Property & Fin
Guy Cook
Baltimore MD
Associate
AJTM Financial Group Inc.
Anthony Tomasi, Jr.
Stamford CT
Associate
Alpha Funding Solutions
David Hansel
Marlboro NJ
Associate
American Life Financial Co.
Byron Allen
Mexa
Associate
American Truck Group
Louis Normand jr
City
State
AZ
Membership Level
Associate
Anderson Legal, Business & Tax Advisors Clint Coons
Tacoma
WA
Corporate
Armanino McKenna, LLP
Jason Gilbert
San Ramon
CA
Corporate
Asset Ventures LLC
Tom Bourne
Redondo Beach CA
Associate
Asset Ventures LLC
Tony Martinez
Redondo Beach CA
Associate
Avana Capital
Sundip Patel
Peoria
AZ
Associate
Bay Mountain Capital
Wayne Corley
Dallas
TX
Premier
Bay Mountain Capital
Dean Lontos
Dallas
TX
Premier
Bay Mountain Capital
Phillip Sanchez
Dallas
TX
Premier
Bennu Funding
Demian Heald
Portland
OR
Corporate
Bennu Funding
Court Trevillyan
Portland
OR
Corporate
BG Real Estate
Jerry Bouchard
Fairfax
VA
Associate
Biddle Lawyers
Stacey Davidson
Brisbane Queensland
Corporate
Biddle Lawyers
Stephanie Murray
Brisbane Queensland
Corporate
Blue Ocean Mortgage
Jim Sexton
Roanoke
VA
Associate
BofI Federal Bank
Salvatore Salzillo
San Diego
CA
Corporate
BofI Federal Bank
Joel Kodish
San Diego
CA
Corporate
BofI Federal Bank
Taylor Osborn
San Diego
CA
Corporate
Bolour Associates
Elliot Shirwo
Beverly Hills
CA
Associate
39
Active Lender Directory Company Name
Contact Name
City
State
Membership Level
Bortnem Services LLC
Roger Bortnem
Golden Valley
MN
Associate
BuySellInvest Properties LLC
Norma Skeete
Arlington VA
Associate
Capital Benefit
Marcel Bruetsch
Newport Beach CA
Premier
Carolina Private Money
Bill Fairman
Lake Wylie
Associate
Colorado Federal Savings Bank
Jonathan Banks
Greenwood Village CO
Associate
Colorado Federal Savings Bank
Randy Ilich
Greenwood Village CO
Associate
Connvisions Capital Group
Alex Arriaga
Raleigh
NC
Associate
Control Capital Group
Blair Kenny
Calabasas CA
Associate
CPR Pacific
Aaron Chan
Pacific Grove
CA
Associate
Credit Circle formally Debt Dog Inc
David Shimko
New York
NY
Corporate
Credit Circle formally Debt Dog Inc
Herb Williams
New York
NY
Corporate
Credit Circle formally Debt Dog Inc
Perikles Konstantinides
Salt Lake City
UT
Corporate
CSRE Investments LLC
Marifrances Kudla
Glendale
CA
Premier
Dusek Network, Inc
Brenda Dusek
Orchard Lake
MI
Premier
Dusek Network, Inc
Rich Dusek
Orchard Lake
MI
Premier
E3 Funding
Todd Burk
Oxford
MI
Associate
Eastern Capital
Kathleen Tomasso
Atlanta
GA
Corporate
Eastern Capital
Joseph Tomasso
Atlanta
GA
Corporate
Elares Capital Partners, LLC
Robert Woodcock
San Diego
CA
Premier
Elite Mortgage Loans
Tom Jarrell
Fresno
CA
Premier
Elite Mortgage Loans
Constance Griggs
Fresno
CA
Premier
Equity Trust Company
John Bowens
Elyria
OH
Associate
Fairway America, LLC
Lance Pederson
Portland
OR
Corporate
Fairway America, LLC
Matt Burk
Portland
OR
Corporate
40
SC
Active Lender Directory Company Name
Contact Name
City
State
Membership Level
Fairway America, LLC
Darris Cassidy
Portland
OR
Corporate
FCI Lender Services
Gordon Albrecht
Anaheim Hills
CA
Corporate
Financial Momentum
Carmen Fields
Chicago
IL
Associate
Financial Momentum
John Hayes
Chicago
IL
Associate
Forrest Financial Group
Charles Townsend
Denver
CO
Associate
FutureGen Capital
Martin Lundgren
Washington DC
Premier
FutureGen Capital
Lawrence Schmidt
Washington DC
Premier
Gemini Capital Managers
Jack Krupey
New York
NY
Associate
Genesis Capital Partners
Trixy Weiss
Los Angles
CA
Associate
GMA Factor
Jacob Sacks
Pittsburgh PA
Associate
HB Equity, LLC
Stephen Howard
Austin
Associate
Heilstein Lending, LLC
Kimberly Palmer
Fayetteville NC
Heritage Capital
Shelley Mosher
Knoxville TN Corporate
Heritage Capital
Ryan Parson
Glenwood Springs
Iron Bridge Lending
Gerard Stascausky
Portland
OR
Associate
JCDannenfeldt
Chris Dannenfeldt
Addison
TX
Corporate
JCDannenfeldt
Theresa Krafcheck
Addison
TX
Corporate
Jeff Smallowitz
Jeff Smallowitz
Redondo Beach CA
Associate
JG Funding
Jeremy Goldzal
Staten Island
NY
Associate
JG Invests LLC
Jonathan Gould
New York
NY
Associate
Legacy Group Capital LLC
Brent Eley
Bellevue
WA
Associate
Live Dream Lending
Brian Derisay
Carlsbad
CA
Corporate
Longhorn III Investments LLC
Michael Hoffman
Dallas
TX
Associate
Main Street
Krissie Jones
Fair Oaks
CA
Corporate
41
TX
Premier
COCorporate
Active Lender Directory Company Name
Contact Name
City
Main Street
Tyler Happe
Fair Oaks
Mardavsco, LLC
Alan Weinstock
Northridge CA
Premier
Metro Street Capital
Mark Nagy
Southfield MI
Associate
Metropolitan Finacial
Dave Franecki
Phoenix
Associate
MICON Properties LLC
Michael Vavricek
El Dorado Hills CA
Premier
MidAtlanticIRA
Scott Blair
Frederick MD
Corporate
MidAtlanticIRA
Jack Kiley
Frederick MD
Corporate
MIRealty Investments
Thomas Lytle
Chesterfield MI
Associate
Nemo-A Investment Corp
Annie Liu
Seattle
WA
Associate
North By NorthWest Funding
Dante Salvati
Portland
OR
Associate
Northern Atlantic
John Quartararo
Bronxville NY
Associate
NoteSchool
Eddie Speed
Southlake TX
Corporate
Pacific Capital Solutions, LLC
Bob Cox
Medford
OR
Associate
Pacific Private Money
Lisa Hanf
Novato
CA
Corporate
Pacific Private Money
Mark Hanf
Novato
CA
Corporate
Premier Mortgage Lending
Rick Piette
Las Vegas
NV
Premier
Pride of Austin Capital Partners, LLC
David Owen
Austin
TX
Corporate
Pride of Austin Capital Partners, LLC
James Rincon
Austin
TX
Corporate
Principal Parners Lending
Troy Blessing
Denver
CO
Premier
Private Lender
Donald Burdick
Lake Oswego
OR
Associate
Private Lender 4 U
Steven Nye
Flushing
NY
Premier
Private Lender Pro
Michael Emens
San Jose
CA
Premier
Private Loan Store
Scott Ferguson
Chandler AZ
Associate
Tempe
Associate
Private Mortgage Financing & Investments Mitchelle Vicknair
42
State CA
AZ
AZ
Membership Level Corporate
Active Lender Directory Membership Level
Company Name
Contact Name
PrivateLenderLink.com
Rocky Butani
San Francisco
Rain City Capital, LLC
Fred Rea
Kirkland WA
Corporate
Rama Capital Partners, LLC
EJ Chanin
Los Angeles
CA
Corporate
Rama Capital Partners, LLC
Alim Kassam
Los Angeles
CA
Associate
Real Fic Realty, Inc
Federico Amaya
West Saint Paul
MN
Associate
RealInvestors, LLC
Sherman Ragland
Bowie MD
Associate
ReCap Advisors
Cecil Chan
Brisbane CA
Associate
Red Cardinal Capital Asset Management
Marucia Rella
Cedarhurst NY
Premier
Red Dirt Lending
Scott McLain
Oklahoma City
OK
Premier
Redemption Company LLC
Michael Rosenberg
Carbondale
CO
Associate
Rehab Cash Now
Erica Lacentra
South Windsor
CT
Corporate
Rehab Cash Now
Jeff Mallus
South Windsor
CT
Corporate
Renu
Clark Cordner
Canton GA
Associate
RevitaLending, LLC
William Lansing
Washington
DC
Premier
Richard Urias
Richard Urias
San Jose CA
Premier
SBS Trust Deed Network
Rory Cambra
Westlake Village
CA
Associate
Secured Investment Corp
Dean Hutchins
Coeur d’Alene
ID
Associate
Silver Arrow Investments
Damon Prouty
El Dorado Hills
CA
Premier
Silverado Funding, LLC
David Scott
Lake Oswego
OR
Associate
SMCC Capital LLC
Steve McCondichie
Newnan GA
Associate
Specialty Lending Group
Jeffrey Levin
Greenbelt MD
Associate
Spinnaker Loans Inc
Juan Carlos/Quiroz-Zolezzi Rancho Cucamonga
CA
Corporate
Spinnaker Loans Inc
Raul Ramirez
Rancho Cucamonga
CA
Corporate
Spinnaker Loans Inc
Guillermo Nunez
CA
Corporate
City
43
State CA
Associate
Active Lender Directory Company Name
Contact Name
City
State
Membership Level
Spotlight Lending
David Bacon
Cupertino CA
Premier
Steal Water Holdings, LLC
Layna Haitsch Palumbo
Bethel
CT
Premier
Tempo Funding, LLC
Mike Zlotnik
San Francisco
CA
Associate
The Aclaime Group
Keith Crandall
Sandy
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