Originate Report - February 2022 by Originate Report

February 2022

THE OFFICIAL MAGAZINE OF GERACI

INSIDE:

THE TRIUS LENDING PARTNERS MODEL Emphasizing Quality & Expertise

TECHNOLOGY THAT CONNECTS Bridge Loan Network

COREVEST

A Longtime Player in the Now-Trendy Build-to-Rent Market

TEMPLE VIEW CAPITAL Expertise Across the Investment Spectrum

WHY ARE YOU NOT ORIGINATING DSCR LOANS? AND MORE... February 2022 Originate Report 1

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CONTENTS FEBRUARY 2022 COVER STORY 6

Technology that Connects, Bridge Loan Network By Lindsey Goodrow, Contributing Writer for Originate Report

FEATURED ARTICLE

The Trius Lending Partners Model Emphasizing Quality & Expertise By Mark Dewyea, Contributing Writer for Originate Report

xperience is a commodity

pandemic. Originate Report recently

the

worth its weight in gold

had the pleasure to chat with Josh-

lending company into a regional

that spans all industries

ua about his intriguing career arc in

hard-money powerhouse.

and economic sectors. Even the best

the lending industry and how those

formal education in the world can’t

experiences influence his role at

“The goal was to grow business and

compare to years spent crafting

Trius Lending Partners.

make Trius a competitive entity in

innovative,

real-world

solutions

preexisting

Baltimore-based

the mid-Atlantic region and really

to adapt to constantly fluctuating

Regionally Focused Lending

market dynamics.

After

expand its presence,” recalls Shein. on

“All while maintaining high stan-

reverse mortgages, Joshua noticed

dards in transparency and quality

Just ask Joshua Shein, a partner at

the industry evolving more to a

for the consumer.”

Trius Lending Partners, who has

residential-focused

truly seen it all—from the historic

shifting

financial crisis in 2007-2008 to the

prompted him to reach out to the

remaining transparent and deliv-

unprecedented

associ-

original Trius team. Together, they

ering the best end-product possible

ated with the ongoing COVID-19

set ambitious goals to grow and scale

to the client is a focal point in

challenges

years

spent

regulatory

focusing

business.

The

environment

That

underlying

emphasis

“We are always looking out for our clients’ best interest to ensure that the return on investment aligns with their long-term goals. If we see a deal that doesn’t make sense for them in the long run, we tell them that. Their success is our success.” Joshua’s overall business philosophy.

The real estate lending space is

We are always looking out for our

It’s an approach that has lent itself

becoming

crowded

clients’ best interest to ensure that

working

with lenders all vying for business,

the return on investment aligns with

partners.

making for a competitive market

their long-term goals. If we see a

“Honesty, integrity and relation-

when it comes to attracting clients.

deal that doesn’t make sense for

ships are the key components of

Trius Lending Partners has found

them in the long run, we tell them

success in the lending industry,”

immense success in doing so by

that. Their success is our success.”

explains Shein. “At the end of the

providing

day, functional relationships with

ty and individually tailored funding

Although Trius has grown signifi-

partners, vendors, and clients alike

solutions. “We visit nearly every

cantly over the years, becoming

allow us as an organization to adapt

property in person,” says Shein of

involved in 30-year rental loans

and overcome all challenges and

the Trius underwriting approach.

and longer-term loans in the local

deliver consistent results for even

“We provide advice when deals

marketplace (primarily in Delaware,

the most demanding projects.”

and transactions don’t make sense.

Pennsylvania, Maryland, DC and

maintaining

relationships

lasting

with

key

increasingly

unmatched

accessibili-

Virginia), they have maintained a regional radius which is unique in the lending space. That was a conscious decision on the part of the Trius Lending Partners management team, who wanted to remain intimately familiar with the latest market trends, property values, costs, needs, and fluctuations in the area so they can deliver the utmost service for their clients. “As a small, local, regional lender, relationships are Joshua Shein, Partner, Trius Lending Partners

incredibly

important.

Working

Trius Lending Partners: Continues on pg. 14

February 2022 Originate Report 13

Trius Lending Partners: Continued from pg. 13

Trius Lending Partners Team (Left to right) Front row: Brian Valdivia, Business Development Manager; Joshua Shein, Partner; Steve Bond, Partner; David Bond, Partner; Back row: Denise Rezeppa, Office Manager; Toni Robinson, Senior Commercial Mortgage Consultant; Anastasia Delices, Marketing Manager; Ezra Rosen, Commercial Loan Consultant; Andrew Rockstroh, Sales Consultant; Keith Torgersen, Lending/Closing Manager; Marcy Muranko, Office Administrator; Alexandra Nicholes, Office Assistant; Samantha Sierra, Loan Processor; Lilly Thomas, Assistant Loan Processor; Rachel Brown, Loan Processor

with someone that understands the

lenders to navigate, but it is an

It’s safe to say that Shein and the

local market and gives clients access

aspect of the job tha Joshua truly

rest of the Trius team will have

to experts that are co-located and

enjoys. “Every day I encounter a

plenty

available to field questions is an

unique deal. That is what I enjoy

invaluable

sets

most about my role at Trius. No two

clients hit their investment targets.

Trius Lending Partners apart from

clients are the same. No two deals

larger

simply

are identical. That’s exciting to

can’t deliver a comparable level of

me. We are working with people

individualized attention.”

who are growing their business

asset

and

competitors

truly

who

long-term

and

plishing goals. When I was focused

An inherent characteristic of the

solely on the mortgage business, I

real estate industry is variability.

didn’t have that frequent interaction

Every property is different. There are

and repeat business with clients.

different aspects that set apart

I really enjoy forging relationships

each transaction. Admittedly, these

and assisting them in reaching

nuances

their goals.”

challenges

for

opportunities

to help

Trius Lending Partners is currently servicing over $50 million in loans and has plans to scale that number in the near future.

scaling—accom-

Goal-Oriented Mindset

present

For More Information: jshein@triuslendingpartners.com https://triuslendingpartners.com/

UPCOMING ISSUES 2022 MONTH

THEME

CONTENTS & AD DEADLINE

February 2022

Multifamily Lending - SOLD

January 10

April 2022

Innovate Special Edition – Focus on Innovative Companies, People, and Ideas* - SOLD

March 4

June 2022

3rd Annual Women in Real Estate Edition - SOLD

May 6

August 2022

Captivate Special Edition – Focus on Deal Flow and Capital-Raising*- SOLD

July 8

October 2022

AAPL Special Edition – Focus on CRE*

September 9

December 2022

Year in Review – Highs and Lows of 2022

November 5

Themes are subject to change. *Conference-Specific Issues. The AAPL Special Edition will be included in tote bags at the event.

COVER STORIES & FEATURED PIECES Conference-Specific Cover Stories* • 2500-3000-word article written by an Originate Report staff writer • Cover story company to provide 5-10 photos for use with article** • Cover story company to provide a full page ad to be in the following edition • 25 printed copies for Cover Story subject • Printed Copies prominently displayed at Innovate, Captivate, or in the bags at AAPL depending on issue Non-Conference Specific Cover Stories • 2500-3000-word article written by Originate Report staff writer • Cover story company to provide 5-10 photos for use with article** • Cover story company to provide a full page ad to be in the following edition • 25 printed copies for Cover Story subject • Some printed copies may be made available at conferences including CMA, Captivate, CREF, AAPL Featured Pieces Both conference and general cover story • 750-1000-word article written by Originate Report staff writer • Story company to provide 3-6 photos for use with article**

*Includes cover **High resolution (300dpi) photos - Include captions; list photos in order of preference; stock photos can be provided by the designer

ADVERTISEMENTS Originate Report magazine is distributed through print and digital channels to thousands of loan originators, lenders, investors, and other professionals in the non-conventional lending industry. It has become an essential resource for its audience, providing valuable and timely content with each edition to help readers stay up-to-date on current industry trends and grow their businesses. Originate Report also provides a platform for professionals in the lending space to promote their services through advertisements. Full Page: 8.5” x 11” + .25" bleed + .5” margins on all four sides | Half Page: 8.5” x 5.5” | Quarter Page: 4.25” x 5.5” Please reach out for pricing and opportunities. *Advertisement pricing includes graphic designer working with you to create the ad. Take 10% off if you provide the file to use in our publication.

Lesley Boyd, Senior Vice President of Marketing l.boyd@geracillp.com | submissions@originate.report | (949) 379-2600 www.geracilawfirm.com | www.originate.report | www.geracicon.com February 2022 Originate Report 15

FEATURED ARTICLE Beth O'Brien Founder & CEO, CoreVest

A Longtime Player in the Now-Trendy Build-to-Rent Market By Mark Dewyea, Contributing Writer for Originate Report

midst

the

nationwide

imbalance of supply and demand

in the housing

market, the build-to-rent micromarket has emerged as a growing trend in the single-family residential sector. Originate Report had the distinct pleasure of speaking with Beth O’Brien, Chief Executive Officer at CoreVest Finance, to explore the dynamics behind the notable rise of the build-to-rent model and how Park Place Fairdale exterior night time, courtesy of Allied ATMA

CoreVest is facilitating continued growth for real estate investors focusing on this approach.

Can you provide us with a quick

completing the construction process

background of the origins of

on their own. Generally, they have

CoreVest?

transitioned into this space after

CoreVest is one of the original private

having trouble procuring assets in

lenders in the single-family rental

their respective markets that fit the

space. The company started out as

renovate-to-rent model.

Colony American Finance (CAF) in 2014 as part of Colony American Homes.

AuctionFInance.com,

fix-and-flip lender that I also cofounded in 2012, was acquired and integrated into CAF in 2015. In 2017, CAF was recapitalized by Fortress Credit Funds who eventually sold the company to Redwood Trust, a public mortgage REIT in late 2019. Overall CoreVest is unique in the space for several reasons. It has

What prompted the increasing popularity of build-to-rent in the current market? The recent trend of the build-to-rent approach can be attributed in large part to the severe housing shortage in

work-force

housing.

Lagging

construction levels coupled with the uptick in demand has resulted in rampant price increases on a national basis. This has prompted many onceaspiring homebuyers to consider

Park Place Fairdale family room, courtesy of Allied ATMA

always financed both bridge assets (shorter duration, value add, 1-to2-year loans) and permanent assets (stabilized 5-, 10- and 30- year loans), and it typically finances in portfolios for the operators while originating loans with the expectation that it will hold the risk either through balance sheet or securitization where it holds the first loss component. CoreVest is the only private lender who is fully integrated from loan sourcing to portfolio management of the credit bonds in the securitizations.

Park Place Fairdale balcony, courtesy of Allied ATMA

Have you noticed a shift towards a build-to-rent approach? How does a company or investor determine

renting their homes for at least the

if this model fits their unique

time being, which is great news for

requirements?

investors focusing on the build-to-

We have definitely seen many clients

rent approach. CoreVest is able to

increase the ratio of build-to-rent

close build-to-rent transactions in

in their portfolios. They usually

30-45 days. We really see ourselves

accomplish this by either buying

as a true lifecycle lender. We want to

directly through builders or by

be able to finance our clients at all

stages of their project whether it’s construction, bridge, or permanent financing.

Our

unique

model

provides us the flexibility to jump in at any stage of a given project and finance it.

CoreVest: Continues on pg. 18

February 2022 Originate Report 17

CoreVest: Continued from pg. 17

Build-to-Rent is definitely not a fad. It has always existed and is a structural component of the US housing stock.

Park Place Fairdale exterior day time, courtesy of Allied ATMA

Is this trend a result of the pandemic or in spite of it? I believe the rise of build-to-rent is West Side Villas kitchen, courtesy of Allied ATMA

primarily driven from demographics that were very apparent before the onset of the pandemic. Build-torent is a hot topic because so much institutional capital is coming into the market. But it has been around for decades, and CoreVest has always financed it. In fact, two of our very first loans years ago were devoted to build-to-rent communities. We have also responded to our clients’ input and needs by providing more products to meet demand. Build-torent is a very sustainable model as it can accommodate so many different

West Side Villas dining area, courtesy of Allied ATMA

investment

strategies,

it’s single property investments or entire communities.

whether

to have available land. One of the biggest risks is that investors are pushing further out from amenities to find available rent. In a tertiary market, the demand may not be there in the long term. Is build-to-rent a fad or here to stay? Build-to-Rent is definitely not a fad. It has always existed and is

Crest at Cooper exterior, courtesy of Cor3 Capital

a structural component of the US housing stock.

CoreVest financed

30-year-old homes in Memphis and parts of Ohio that were build-to-rent when they were built, and are still being rented. We are also financing a group out of Camden, New Jersey, who are revitalizing a build-toWhich strong markets do you

rent community there that was

prefer and what data points

built after the second world war to

do you use to make those

accommodate the local ship building

determinations?

industry. Build-to-rent is here to

We look for a few things. Access to

stay and CoreVest will continue to

jobs and schools are very important

be active in the space. The great

but

thing about build-to-rent is that

For example,

each strategy is a little different—

we like Huntsville, Alabama, for

you just need to have factors that

build-to-rent since the job base

drive residents to your community,

very much favors newer, detached

whether that be a clubhouse or the

housing. It is the highest per capita

fact that every residence is a free-

PhD base in the country due to all

standing house offering renters a

the NASA contractors, but they tend

sense of ownership.

carry

different

different markets.

weight

Crest at Cooper living room, courtesy of Cor3 Capital

to hire junior engineers who have high income but may not have kids yet. There, the schools may be less important than the dog parks or other amenities that build-to-rent communities have to offer. The important thing is that you need

For More Information: https://www.corevestfinance.com/

Crest at Cooper kitchen, courtesy of Cor3 Capital

February 2022 Originate Report 19

CONTRIBUTED ARTICLE

Why Are You NOT Originating DSCR Loans? By Rocky Butani, Private Lender Link

he DSCR long-term rental

immediately sell to the secondary

loan product has been a

market, which has a huge appetite

blessing

for this product. Not all institutional

for

many

loan

originators over the past 15 months. While the fix & flip volume has dropped, there has been an enormous demand for rental financing. It’s been great to see many originators take advantage of this opportunity and hit loan volume records over the past year.

loan

buyers

consider

long-term

rental loans, but there are still plenty of options. Originators don’t even need a balance sheet for these loans. There are a few companies that offer a wholesale program to fund these loans with very attractive pricing. If you can find one that

These loans are fairly easy to originate if secured by one property. Most of the originators in our network have started advertising DSCR loans as part of their offering, while others have kept it as a private offering for their existing clients who typically flip houses. It’s so attractive, I’ve seen several companies that focus on large commercial real estate bridge

doesn’t charge points, it could be an ideal partnership. As tempting as it is, there are a lot of lenders in our network that have no interest in this hot new loan product. I’ve asked several lenders why they don’t want to originate DSCR loans. Below are a few of the responses (not in their exact words).

loans now offering DSCR loans for DSCR WILL BE SHORT-LIVED

residential properties.

Lender: The institutional capital

Many originators fund DSCR loans

will stop buying these loans in the

using

near future.

their

balance

sheet

and

Response:

Why

not

take

advantage of it while it’s hot and

Lender: It’s OK. Another lender can

can double-dip with two separate

have the take-out business.

loans for the same property and earn extra revenue. The first loan

earn additional revenue? INTEREST RATES ARE GOING UP

is acquisition and rehab. The DSCR

Lender: I don’t want to advertise a

Lender: When rates go up, DSCR

loan is the take-out, and they are so

loan program and then have to shelf

lending is done.

easy to originate. It’s surprising to me that a lot of lenders would miss

it in a short period of time. I prefer My Response: Bank rates will go up

to focus on short-term lending.

out on that additional opportunity.

too. Investors will always need an DSCR IS NOT PRIVATE LENDING

So is the DSCR loan product a fad,

alternative.

Lender: Private lending is only for

or will it continue to play a big role

short-term. It seems odd to offer

Lender: The numbers won’t make

in private mortgage lending in the

permanent financing.

sense, and the LTVs will be too low

future? Perhaps it all depends on

for most investors.

what happens with interest rates

My Response: If your borrowers

over the next year and whether the

want DSCR, why not offer it to them

F@#% WALL STREET!

demand from institutional investors

in-house? They’ll get it from your

Lender: I will never do business

continues. It’s a fun topic, and I will

competitors, and there’s a risk losing

with institutional capital providers.

continue to have this discussion

them as a client for short-term loans.

Wall Street money is unreliable. Do

with various players in the private

you remember April 2020?

lending space.

My Response: OK.

About the Author

Lender: Good point. NOT ENOUGH DEMAND

Rocky Butani is the Founder & CEO

Lender: My borrowers only flip

Lender: We have lots of discretionary

of PrivateLenderLink.com, a website

properties.

are

private capital and more than enough

where brokers and property investors

acquiring rentals or holding post-

deal flow for short-term loans.

find

None

them

direct

private

lenders

and

industry service providers. He has

rehab/construction. I find that most lenders who reject

been in the private mortgage industry

My Response: What if the market

the idea of originating DSCR loans

for over 10 years.

shifts and it becomes more difficult

have been established long before

to sell?

institutional capital entered the private

CA DRE Broker Lic. 01893537.

lending space, and they don’t see a Lender: Then I’ll shift with the

need to change their capital model, or

market and consider originating

expand their product offering. This is

rental loans down the road.

good news for loan originators who are all in on funding DSCR loans and

TOO MANY LOAN PROGRAMS

don’t need more competition.

Lender: I don’t want to offer too many loan programs. I prefer to stay

The fundamental reason the DSCR

in my lane.

program is so powerful is that the long-term hold is now a popular

My Response: You’d still be originating

strategy

a private mortgage. Your borrowers

investors who have historically been

most likely don’t want to deal with a

flippers. A lender offering both rehab

different lender for the takeout.

loans and the long-term DSCR loan

for

many

real

estate

Rocky Butani Founder & CEO PrivateLenderLink.com https://privatelenderlink.com/

February 2022 Originate Report 21

EXPERIENCE A NEW WAY TO FIND DIRECT LENDERS PLL v4.0 Launched We recently launched a major upgrade to PrivateLenderLink. com, our 4th version since we started in 2010. Brokers & real estate investors can still freely browse lender profiles and contact each one directly, but we’ve added a new system to improve the experience for all parties involved...

Create a Loan Request Save time, and make your search process more efficient by entering your loan details once. Save the Loan Request to your account, then browse lender profiles, and choose which lenders should have access to view it. Invite as many lenders as you wish.

Communicate with Lenders After lenders view your loan request, they can indicate their interest level and send you messages through our platform. You may take the conversation offline if you wish; you’re in control. Your dashboard will show you a list of all the lenders you’ve invited.

Request Recommendations If you’d like some assistance with choosing lenders, share the Loan Request with us, and we’ll invite a few select lenders that we feel may be a good fit. We have relationships with over 200 lenders, and we know their lending criteria.

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(877) 472-4842 www.civicfs.com

February 2022 Originate Report 23

PRIVATE LENDING TITANS

PRIVATE LENDING

TITANS Boots Dunlap CEO & Co-Founder, RRA Capital

When my father approached me about his idea and asked if I wanted to help him build it, I was struggling to make ends meet as a new father. Though I left active duty, I enlisted in the National Guard for medical insurance and a small paycheck, and I took on any odd job available to help cover my expenses while I looked for more permanent work. I swore I would never work in real estate for my father because I was extremely proud and wanted to carve my own path. After months of trying to find a job, though, it was clear that nobody wanted to hire me, and I had

Boots Dunlap

lost hope in finding my new civilian career. With few options, I accepted

CEO & Co-Founder RRA Capital

my father’s challenge of joining him to do distressed asset consulting.

Q: Why did you choose to join the

potentially worse than the Savings

private lending industry?

& Loan Crisis of the late 1980’s and

Growing up in a real estate development

early 1990’s.

family

amidst

the

For the next 5 years, we rolled up our sleeves and went to work attempting to

boom-and-bust

salvage

possible

for

much our

value

clients,

as who

market of Phoenix, I saw firsthand how

At that point, I had returned to my

real estate cycles brought financial

hometown of Phoenix after tours in

abundance and scarcity to developers

companies,

Iraq and Afghanistan as an infantry

private credit firms. Consistently, we

and their families. It seemed that

officer. Very few real estate firms

saw developers experiencing the same

in Arizona were hiring, and the

financial distress I had seen in my

whether you died rich or poor just depended on when in the cycle you died. However, regardless of cycles, it appeared as though banks always weathered the storm, though they might get acquired. And, bankers always stayed employed, though they might move to another bank. I saw this up close in 2008 when we built RRA, originally called “Realty Resolution Advisors”, an institutional

few available jobs were going to people far more qualified than I. While my father was triaging his business, a banker reached out to him to see if he would consult on a distressed development.

This

opportunity spawned the idea that

were most often banks, insurance CMBS

lenders,

and

father’s business, which made me very weary of getting into development. We also saw traditional lenders that had made loans on fully-leased assets that were now vacant, which made me very weary of lending on stabilized assets.

By 2012, the

market felt like it had bottomed, but

banks were going to need a lot more

there were still no green shoots to

development expertise as the recession

give hope that we were in recovery.

consultant for commercial real estate

deepened, and he could generate

lenders. In 2007, my father had to

some income around distressed asset

close his 35-year-old development

consulting to hopefully keep the lights

company because he believed we

on and reposition his firm for great

were entering a real estate recession

buying opportunities.

Despite the uncertainty, interest rates were at historical lows because of the Federal Reserve’s need Boots Dunlap: Continues on pg. 26

February 2022 Originate Report 25

Boots Dunlap: Continued from pg. 25

to stimulate the economy, pushing mortgage and cap rates down to historical lows. return

From an absolute

perspective,

did

not

appear that buyers and lenders on real estate were getting paid for the risk on stabilized assets.

As a result,

the best investment was in the value-add space where you could increase value without the high cost of ground-up construction. At that point, our firm had consulted on billions of dollars of distressed loans, and I had developed an expertise in commercial credit and transitional

vision for the company, finding new

company was in the toughest places

ways of growing the firm, and find-

during some of the toughest times of

ing ways to unlock more value for

both wars. However, moving back to

our stakeholders, investors, clients,

Phoenix in October of 2007, was like

and borrowers. On the debt side, we

moving to a different kind of war

do significantly more volume than

zone. While America experienced the

equity GPs, so it’s important that

Great Recession, it was much more

I focus more on the overall strate-

like a full-blown Depression in Phoe-

gy, our team, and our process than

nix who’s boom-and-bust economy

the details of every loan request we

had made ghost towns out of certain

receive. Though I am involved in a

parts of the city, and left most people

lot of the day-to-day execution, and

in my world without jobs or under-

I am an active member of the invest-

employed and struggling to get by.

ment committee and closely review every deal we fund, most of my time

Trying to get a job was humbling,

is spent working on the company,

and

not in it.

an impossible feat. For the first

assets. My experience taught me to

building

RRA

seemed

several years, I made less than I

always look for the problems, which

Q: What excites you about your

did in the Army and worked harder

is a more fitting skill set for a lender

role today?

each day than I did during the most

who has to manage downside, than a

We are a small lender and by no means

difficult finals week in college.

developer who is focused on the upside.

‘Titans’ of the industry; however,

I slept in my office many nights as

I am 100% confident that RRA is

I grinded away developing thousand-

going to be the best private lender

page reports before deadlines. Our

in America.

It’s a bold statement,

consulting clients, (predominantly

but it’s totally feasible and I like

lenders), were running exceptionally

our consulting and portfolio asset

doing bold things. We also have an

lean and could afford to be stingy

management business.

Given our

amazing team that is committed to

because real estate professionals

experience and thoughts on the

making it happen. Every RRA team

were lined up outside their doors like

market, we focused our strategy

member is remarkably smart and

street vendors in a Moroccan bazaar.

on providing senior mortgages to

fun to be around. I am blessed to be

Growing the company wasn’t just a

professional sponsors on commercial

doing cool things with cool people. It

strong want; it was a necessity for

real

makes going to work a blast.

my mental and physical health, and

So, in 2012, we approached one of our insurance clients about seeding a bridge lending strategy alongside

estate

with

compelling

critical to being able to support my

value-add business plans. Today, the lending business has grown dramatically,

Q: Can you explain a time when

family emotionally and financially.

having lent over a billion dollars in

you faced adversity or had

Still

our strategy, and is the core focus of

struggles early on in your career?

sensitive to those looking for jobs,

our firm.

Where did it all begin? How did

getting started in my industry, or

these experiences mold and shape

starting a small business.

today,

exceptionally

Q: What is your current role and

you into the leader you are today?

what do you do day-to-day?

Prior to my career in finance, I served

Q: Is there anything that you wish

My current role in the company is

as a platoon leader and executive

you could go back and tell yourself

Chief Executive Officer and Head of

officer with the 10th Mountain Di-

at the beginning of your career?

Investment Strategy. This basically

vision in Fallujah, Iraq, and Kunar

Invest in multifamily! Hindsight is

means I am responsible for casting a

Provence, Afghanistan. My infantry

always 20/20. LOL!

Besides investment advice, I always wanted to go to a top-10 business school. Because of my time in the service, starting my family and RRA when I was relatively young, life got away from me. I don’t think business school is necessary, or even worthwhile when compared to getting great work experience; however, if you can get into an HBS, GSB,

Wharton

type-business

school I think it can dramatically alter your professional trajectory. Most employers don’t pay any more for MBA unless you have a top-10

We are a small lender and by no means ‘Titans’ of the industry; however, I am 100% confident that RRA is going to be the best private lender in America. It’s a bold statement, but it’s totally feasible and I like doing bold things. We also have an amazing team that is committed to making it happen. Every RRA team member is remarkably smart and fun to be around. I am blessed to be

for “general business”, not in a niche like

international

business,

doing cool things with cool people. It makes

real

estate, or supply chain management.

going to work a blast.

Add itionally, if you can work for a globally recognized real estate fund, that can also dramatically set you apart.

I always tell young people

to offer to work for free to get your foot in the door. If you are any good,

company are properly integrated

felt the work that he provided clients

to achieve our mission. He brings

wasn’t excellent, he often would not

confidence to our team through his

charge them, or if his investors lost

and they have a conscience, they’ll

steady leadership style and is a real

start paying you after a month of

lifesaver. On that note, he also saved

good work.

my son’s life in a pool, so I owe him

Q: Who is someone that has had a significant effect on your career and why? My two business partners, Marc Grayson, and my father, Charlie Dunlap. I can’t say enough about how important these men are to me and the success of our company. Marc is my fellow co-founder, the President

my life, but that is for another time. However, my father has impacted my

career

and

life

than

result of his initial vision to create a consulting company with me. When we started the company, I had no credibility and was extremely green. He not only taught me the business, but more importantly, taught me

Operations. His strengths are very

how to treat people with love…

different than mine which makes our

almost awkward love and kindness.

talents complementary. While I am

I have never met another person

more focused on building strategy

that puts his team and clients before

and new initiatives, he is responsible

himself more than my father.

for

and

would make sure everyone else on the

making sure all the parts of the

team got paid before himself. If he

operations

out of his own pocket to make them whole. Some might say that’s poor business, but it demonstrates the type of man he is. In the long run, it proved to be invaluable in building the business.

anyone. This whole company is a

of the company, and the Head of

maintaining

money, he would often take money

Both of these men are the real “titans of industry”. Real estate is a greater part of their DNA than anyone I have met. Any success I have is directly attributed to them. Q: What has been your favorite aspect of being an in private lending over the years? I love the creative aspect of bridge lending, particularly where we get to understand the sensitivities Boots Dunlap: Continues on pg. 28

February 2022 Originate Report 27

Boots Dunlap: Continued from pg. 27

of a business plan and then offer several solutions that can generate a win-win for our borrowers and our investors. CMBS, bank lending, and Fannie/Freddie are more of a commodity that don’t require as much creativity; however, capital structuring

valued

commercial bridge lending where deals tend to be more complex. It’s also fun to see our borrowers adding value to real estate and communities. We try not to do distressed lending because we like knowing that the borrowers’ investors will do well, not just our investors.

Q: What do you enjoy most about

improvement, process improvement,

your job? Least?

and self-improvement. I learned in

MOST: I am starting to sound like a

combat that complacency kills, and I

broken record, but it’s working with

have no doubt that it applies to firms

our amazing team. They are some of

as well. I detest hearing, “because

the smartest, most dependable, and enjoyable people I know and they are amazing at their jobs. LEAST: Working remotely. I need to be around my team, investors, and borrowers. They charge me and challenge me.

I’d love to say money doesn’t matter, but I think it’s incorrect to discount

thus far?

the immortal words of George Bailey

The highlight of my career goes back to

to Clarence the Angel in It’s a

working alongside such talented and

Wonderful Life, “It may not be too

wonderful people. most notably the

important where you come from,

our team and appreciate the work that has gone into making our strategy the best possible investment in their portfolio.

Each time an investor

nology. We are struggling to learn how to embrace technology in real

Self-improvement is also critical

valuable and why?

with money in the right hands. In

business that continue to believe in

Process improvement includes tech-

we care about process improvement.

Q: Is time or money more

be the highlight of your career

to have some of the best LPs in the

Those phrases reek of complacency.

estate finance, and I think we must if

the good that can be accomplished

borrowers. We have been fortunate

“because that’s the way it’s always been done”, or “it’s good enough”.

Q: What would you consider to

RRA team, but also our investors and

that’s the way everyone does it”, or

but it’s pretty handy down here.” But money shouldn’t be compared to time. That’s like asking ‘is risk or return more valuable?’ I think they are better considered as an x- and y-axis on one framework. Then that framework needs to be

because it reveals the improvement mindset of a person. If they are not focused on self-improvement, I don’t know if they can be passionate about corporate and process improvement. If they look like they are into self-improvement but have an ego that gets defensive over critical feedback, I don’t think they are committed to self-improvement. Q: What tools do you use to aid you in your role to be most efficient, organized, and focused? I am more of a creative mind and was diagnosed with ADD amongst

weighed against other frameworks to

several other learning disabilities

recognize one of our team members

make life decisions. I think a lot can

when I was young. Organizing, focus,

for the exceptional job they did, I get

be gained from applying thoughtful

and efficiency are traits that I desire

a high. I know our team is the best

algorithmic systems to philosophy.

but none come naturally. As a result,

or borrower emails or calls us to

and it’s awesome when others can

after 40 years of trying to be someone Q:How do you make sure your

that I am not, I owned up to this fact

company stays ahead in this

and started creating systems to help

Both of these men are the real “titans

industry?

me. For organization, I try to delegate

of industry”. Real estate is a greater

I think it’s continuing to focus on

out tasks that I know require some-

part of their DNA than anyone I have

people and processes.

Our first

one skilled at organization. When

met. Any success I have is directly

Core Value is “Passionate About Im-

I have a task that requires a high

attributed to them.

provement”. This means corporate

degree of organization, I admit that

see what I see in them all the time.

I am weak in that area and ask our

on Microsoft Teams, the cloud, virtual

series D stage, the product is likely

firm President, Marc, to take it on.

meetings, etc. During the height of

in oversupply.

As far as focus, we have a weekly

the pandemic, I even did a virtual site

meeting where I, as the CEO, tell the

visit using a surrogate! Clearly, tech-

leadership team what I am working

nology is the beneficiary of COVID.

on each week, and then they hold me

As for other aspects of the “current

accountable to report on how I did

environment” - greater competi-

on those items the following week.

tion on deals, rate movements, risk

My fear of letting down my team is

of entering a downturn, etc.; plan-

greater than my natural inclination

ning for these and managing them

to get distracted. I also use an urgent

has always been a part of my role.

A great example of this is Top Golf. As a new real estate concept, I would not want to invest in the first Top Golf, or even the second. By the third one, I could tell if the business plan was feasible, and the sponsors are the right team to execute.

By the

20th one, the sponsor doesn’t need our money because they have too many people trying to give them

and important matrix to determine where I spend my time and I try to

Q: What do you believe to be the

money. By the 100th, the concept

pass off the smaller jobs so I can ded-

best type of real estate investment

is likely overplayed and starting to

icate myself to larger jobs that will

opportunity available today and

have a greater impact. I reach focus

why? Do you feel that there will

nirvana at night, so it’s not uncom-

be any changes to the marketplace

mon for me to do a couple all-night-

in 2022 in terms of investment

ers when I need to really focus. All

opportunities?

that to say, I lean very heavily on my

Steeling my secret sauce, eh! LOL.

wonderful team because I am a long

decline. These newer concepts take longer to understand, but if you take the time to understand them, you can get paid well. All product types were originally a new concept. Recent examples include e-commerce logistic centers, data

work in process on this topic and

I think the best risk-adjusted returns

should likely not be giving advice.

are often in new concepts and

office, co-working, SFR communities,

strategies that have been proven out

toy storage, fitness mega clubs,

Q:Has your role changed significantly

a couple of times, but not a hundred

memory care, group housing, micro

to address the current environment?

times. This means that you are on

hospitals,

As far as COVID, not too much.

the front end of the trend, but not

am still looking for ways to im-

the bleeding edge when the business

prove

strate-

plan is still largely theoretical. If the

gy and firm. Those pursuits have

popularity of a new concept/strategy

moved me into other areas, but not

could be compared to PE fundraising

necessarily because of the current

rounds, I would say I like investing

environment. However, ‘what’ our

in the venture or series A stage of

firm does changed. For example, we

a new real estate concept/strategy.

exposure to real estate brokers that

aren’t financing as many office or CBD

After it’s done 100 times, or it’s

are in the flow of deals and can tell

locations as we used to, and we’ve had

roughly 20% through its TAM, I would

you what’s working and what is not.

to roll up our sleeves to learn more

say the strategy is in its series B phase

Good brokers are the best source for

about niche product types in real

and the word quickly gets out with

estate so we can keep generating at-

lots of investors. By the series C stage

tractive risk-adjusted returns. And

there is too much liquidity chasing

how our firm operates has been for-

the concept/strategy thus diluting

ever changed, such as the large reliance

the risk-adjusted returns. By the

our

investment

centers, creative industrial, creative

vet

hospitals,

ghost

kitchens, and luxury movie theaters. 2022 will certainly bring changes as we understand how office and retail adapt to survive a world with endemic COVID and fear of the next ‘Big One’. Be sure to put yourself in industry groups and get

market intelligence and great deals in 2022. For more information, please visit: https://www.rracapital.com/

February 2022 Originate Report 29

FEATURED ARTICLE

Temple View I Capital

f only we had a crystal ball to tell us what 2022 has in store for the national real estate

market. The past 18 months have been a proverbial roller coaster of

Expertise Across the Investment Spectrum By Mark Dewyea, Contributing Writer for Originate Report 30

activity, prompted by the fallout of the ongoing COVID-19 pandemic that created the perfect storm of recessioninduced, historically low mortgage interest rates, the widespread rise of telework enabling homebuyers across the country the option to vacate the crowded (and costly) urban sprawl

and a demographic transition as a new wave of millennials reached peak homebuying age. As if the situation decades

needed of

lagging

nuance,

construction

activity translated into alarmingly low inventory levels insufficient to meet the rise in demand. Cue rampant price escalation. How much longer will these unique market dynamics persist? What can the private lending sector expect in the upcoming months? While we don’t have the aforementioned magical

crystal

ball,

Originate

Report found the next best thing: an experienced professional with

Steven Trowern, Founder & Principal, Temple View Capital

years of industry experience and a proven track record of success

decades of combined experience

the country that are underserved

when

developing

in the investment space to stay at

by traditional construction and real

creative and effective real estate

the forefront of innovative product

estate lenders.”

investment funding strategies. Steve

development

Trowern, Co-Founder & Principal

estate

correspondent

Temple View offers a comprehensive

at Temple View Capital, LLC, is

lenders and brokers nationwide to

suite of funding products including

responsible for strategic direction,

optimize financing efficiency on

fix-and-flip,

investment policy, and corporate

projects and rental properties of all

term rental investments, ground-up

finance. Before launching Temple

shapes and sizes.

construction and bridge loans. The

comes

and

empower

investors,

real

View as an institutional platform

fix-and-hold,

long-

firm’s unique structure has enabled

in 2016, Trowern was one of the

Temple View Capital leverages its

it to flourish in spite of the COVID-

three original co-founders of MCM

extensive experience investing in

19-related turbulence that led many

Capital, an $8 billion distressed asset

rehabbing

of its competitors to halt lending

management company, and was co-

real

founder and Chairman of Dynamic

with simplicity, transparency and

stopped lending during the pandemic,

Capital Mortgage, Inc., a $1.5 billion

efficiency at the core of its daily

it was more of an opportunity for us

residential mortgage lender.

business operations. “We take a

to reevaluate the market as a whole

common-sense approach to lending,”

and adjust our products accordingly

Temple View Capital is a national

explains Steve. “Our underwriting

to ensure the long-term sustainability

private

process

of our clients’ projects and portfolios,”

portfolio

lender

that

properties

estate

investor

focuses

provide financing

asset

value

delivers flexible financing options

and

for residential real estate investors.

demographically attractive suburban

Trowern and his colleagues use their

and urban in-fill markets across

investor

experience

activity

altogether.

“We

never

said Trowern. Temple View Capital: Continues on pg. 32

February 2022 Originate Report 31

Temple View Capital: Continued from pg. 31

That approach has proven immensely successful,

with

Temple

View

utilizing its in-house underwriting and tech-savvy portal-based draw management

system

deliver

unparalleled client-centered focus in what has been a challenging time for lenders everywhere. Leveraging DSCR Loans in the Current Market “We are able to provide our real estate investor

clients

the

opportunity

to avoid the high interest rates and points, lengthy underwriting

Temple View Capital Team Meeting

timelines and overly-strict lending requirements

typically

associated

with traditional investor lending by utilizing DSCR loans,” explained Trowern. DSCR loans have evolved from non-QM residential lending, creating a loan product that is premised on a property asset’s annual

rental

property

investors,

many would-be homebuyers elect

of a steep rise in mortgage rates are probably unfounded.”

to remain renters. That means landlords should have little concern

Don’t Miss Out!

when it comes to vacancy.”

There’s no substitute for getting advice firsthand from some of the

While rampant inflation and the

industry’s leading experts—which

Federal Reserve’s plans to ramp

is exactly what you’ll experience

quickly and accurately analyze the

up tapering while simultaneously

inherent creditworthiness of the

increasing

rate

Conference, April 11-12th. Steve,

collateral and the investor.

substantially in the near future

along with a panel of fellow lending

have prompted many experts to

professionals, will be hosting a live

The Temple View team expects to

raise alarms when it comes to

panel dedicated to answering all of

remain extremely active when it

mortgage

rising

your questions regarding DSCR loans

comes to DSCR lending activity in

significantly over the course of 2022,

as well as anticipated market trends

the next 12 months. “The property

Trowern expects the change will be

and insight. Don’t miss out on this

supply imbalance will take some

modest. “Mortgage rates have been

fantastic opportunity, reserve your

time to be resolved and, in fact, will

historically low for the past couple of

spot today!

remain a tailwind in the housing

years. Even a modest rise in 2022 will

sector for the foreseeable future. As

still be a bargain. As supply chains

a result, we expect prices to continue

adapt to the post-COVID economy,

to rise despite upward pressure

inflation will likely subside and we

on interest rates,” notes Trowern.

may even see the Fed take a more

“Ironically, this is fantastic news for

dovish approach than the long-end of

real estate investors, particularly

the yield curve would suggest. Fears

net operating income and annual mortgage debt—allowing lenders to

the

Fed

interest

Funds

rates

Geraci’s

upcoming

Innovate

For More Information: https://www.templeviewcap.com/

SE E R P LLP I C A ER

NTS

TWO N O S SEA

The Podcast that Looks Behind the Curtain of the Private Lending Industry CATCH US ON THE 2ND AND 4TH MONDAYS OF EVERY MONTH

https://geracilawfirm.com/lender-lounge/ December February 2022 2021 Originate Report 33

TRAILBLAZERS

P R I VAT E L E N D I N G

TRAILBLAZERS Natasha Sachdeva VP of Lender Partnerships, AlphaFlow

traditional owner-occupied mortgage space, the private lending sector experienced a sudden standstill in liquidity

capabilities.

There

was

an effort to better understand how to price the intrinsic value of the assets, and the environment has since stabilized. The bridge lending space has recently exploded due to inventory constraints, low interest rates,

and

soaring

home

price

appreciation. This has resulted in our lender partners originating loans

Natasha Sachdeva VP of Lender Partnerships AlphaFlow

at record volumes and requiring the ability to cycle through capital quicker than ever. As an exchange with deep and consistent liquidity, we have seen exponential growth in the

Q: How many years have you been

lenders throughout the loan lifecycle.

in Private Lending and why did

We are our lenders’ advocate in all

you enter this field?

aspects. We ensure we are providing

I’ve been in this field about a year.

the best execution in the most

Prior, I had been in the single-family

seamless and operationally efficient

Our overall company goal is to

rental space for ~4 years. During that

way possible. Accordingly, we must

continue to build more products

time, I found an industry starved for

continuously balance the specific

and features that further optimize

capital. I saw how private lending

needs and urgency of the client

and automate our lenders’ day-to-

creates accessibility to inventory and

with the associated capital markets’

day tasks. My goal specifically, is

knew lending was a growing space I

pricing and liquidity. In doing so,

to scale our Lender Partnerships

wanted to be a part of.

we have significantly increased the

team to maintain our personalized

number of lenders we purchase

relationship-based approach as we

Q: Where did you get your start?

from and the average loan volume

continue to onboard new lenders

In private lending? AlphaFlow, a

by lender due to repeat business.

onto our platform.

fintech startup where we leverage

Overall, it’s been amazing to build

technology to facilitate liquidity in the

our lender network and play a part

Q: What does success look like for

real estate (RE) backed credit space.

of their growth trajectory!

you?

last year just within RE loan products. Q: What are some of your goals for 2022 and beyond?

Turning a vision into a reality (one Q: What do you do for your firm?

Q: How have you seen your

of the main reasons I love working in

How do your contributions affect

company grow in spite of or because

the start-up world), having a direct

your company at large?

of current market conditions?

positive

I head our Lender Partnerships

COVID exposed the fragility of the

results consistently.

team where we act as an internal

secondary market in private lending.

consultant and a resource to our

Without a GSE backstop, like the

impact,

and

delivering

Natasha Sachdeva: Continues on pg. 36

February 2022 Originate Report 35

to decreasing levels of inventory.

Natasha Sachdeva: Continued from pg. 35

Q: What is something most people don’t know about you or your double

majored

Engineering

and

understanding the constraints of each party.

company? I

We focus on both sides while also

Chemical Biomedical

Engineering and started my career as a Petroleum Engineer. After a lot of discovery, I found a passion

Q: Tell us about a person or organization you admire. How have they made an important impact on you, the industry, or the world? My parents have made the biggest

We empower lenders by providing them access to quick and reliable capital through technology. By using our platform, lenders are scaling

impact on me, by far. They immigrated here

and

established

themselves

through perseverance, resilience, and sheer grit. Nothing was impossible and there was always a solution to

their business with minimal increase

any problem. Seeing this firsthand

in resources. This also allows them

influenced how I perceive challenges

ripe for disruption such as real estate.

as opportunities and success as a direct product of work ethic.

Q: What steps are you or your

what matters most, the borrower

in building tech-focused companies, particularly for antiquated industries

substantially

increase

their

productivity and use their time on

company taking today to make an

experience. Alongside, we enable

impact on the industry?

our capital partners to access a unique

I see change in our industry coming

short-term/high-return asset class.

Throughout my career, I have connected

from two perspectives. There is the capital demand side, which frames

Q: What piece of advice did you

a credit box that structured finance

personally receive early in your

professionals, credit agencies, and

career that has helped shape

investors

decisions you’ve made?

feel

comfortable

with.

On the other end, there is the

Make

the

most

out

constantly

experience.

Take

advantage

evolving

supply

side

Q: Are you involved in any associations, networking groups, or the like that have influenced your career path?

every and

where lenders and borrowers are

extract as much value and learnings

modifying products and programs to

as you can, whether it be skills or

give real estate entrepreneurs access

industry expertise.

Our overall company goal is to continue to build more products and features that further optimize and automate our lenders’ day-to-day tasks. My goal specifically, is to scale our Lender Partnerships team to maintain our personalized relationship-based approach as we continue to onboard new lenders onto our platform.

with mentors who have offered advice, been a sounding board, and expanded my network. Their perspectives and knowledge have given me the ability to make educated decisions on future opportunities. Q: If you had a clean slate to start over and do anything you wanted to do, what would that be? A world traveler. Q: What is the best advice you could give someone thinking about making a leap into Private Lending? Find a great mentor. We all need a guide and finding a helpful one can make the difference between knowledge and growth versus simply employment. Talk to industry veterans and gain insights from their experiences. Go to a few Private Lending conferences, attend panels, and network! For more information, please visit: https://www.alphaflow.com/

You’re Invited!

AAPL’S

13TH ANNUAL CONFERENCE

The Nation’s Largest Private Lender Event 2022 will bring you 2 days of packed sessions, 65+ exhibitors, and 600+ attendees with whom to network and learn.

OCT. 19-21 2022 LAS VEGAS AAPLCONFERENCE.COM

February 2022 Originate Report 37

CONTRIBUTED ARTICLE

Rental Property Loan Options By Kyle Niewoehner, Esq., Geraci LLP

ne of the most prevalent

Private Lenders & Rental

Bridge Loans

hurdles

Properties

The bridge loan is a loan type that

starting out in the real

Due to the limited options for

is perfectly suited for real estate

estate investment industry run into

funding available to borrowers in

investors seeking interim financing.

is how to finance transactions for

this space, private lenders can define

rental properties.

the playing field and make the rules

that

those

just

A variety of options are available to amateur real estate investors, but certain funding sources can prove difficult to obtain approval for, such

– this includes determining the types of loan products to offer. Regardless of whether you are closing your first deal or your hundredth, the loan types below are all potential financing options at your disposal

Bridge loans provide money for a short term until the borrower either secures permanent financing or repays the loan. Private lenders money lenders find bridge loans appealing because they offer an opportunity to tie up money for only

as traditional bank loans. This gives

that can be successfully used to add

a short term, but they are secured

private lenders an opportunity to

the perfect rental property-secured

by real property so if for whatever

thrive in this market.

loan to your portfolio.

reason the borrower is unable to

pay, the lender’s investment can

and expedient closing process. Private

Flexibility and Creativity

be recovered through foreclosure.

lenders will appreciate the long term,

Your borrowers are hungry for

Borrowers like bridge loans because

secured investment.

opportunities

bridge

loans

provide

immediate

cash flow.

Build-to-Rent and Fix-to-Rent Build-to-rent loans provide financing

Term Rental/DSCR/30-Year Loans This category of private lender loans is ideal for private lenders

to build homes that will be specifically used for renting. Fix-to-rent loans provide financing to fix up homes that will specifically be used for

that are seeking to add stability and

renting. Build-to-rent and fix-to-

sustainable growth to their rental

rent loans can be used for all types

property portfolio. 30-year fully

of homes – detached apartments,

amortized loans secured by rental

detached conventional single-family

property are a great investment because

unlike

loans

securing

primary residences, loans secured by rental property have an income stream to cover the monthly debt service payments. The key benefits

residences,

detached

modular

single-family

residences,

attached

rental

properties, and this gives you an opportunity to be creative with terms in a way that conventional banking never could be. The options here are just a few of the options available to you as you determine the types of loan products to offer.

townhomes, attached condominiums, or apartments. Both types of loans are enticing because they offer a single closing for construction or rehabilitation to permanent financing,

for borrowers of the rental 30-year

which reduces cost and time for both

loan are relatively low interest rates

borrowers and lenders alike.

Kyle Niewoehner, Esq. Attorney Geraci LLP https://geracilawfirm.com/

February 2022 Originate Report 39

INDUSTRY NEWS

PRESS RELEASE

The Founders of 1839 Asset Management and A-CAP Announce Launch of Joint Venture 1128 Capital to Serve Growing Demand for Private Mortgage Lending Firm to be managed by industry veterans Sharon Koh and Vincent Spreuwenberg NEW YORK, January 10, 2022 - The founders of 1839 Asset Management, LLC (“1839 Asset Management”) and A-CAP today announced the launch of joint venture 1128 Capital, LLC (“1128 Capital”), which is an integrated business purpose mortgage lending platform that serves brokers and mortgage lenders on a national scale. 1128 Capital will be led by Vincent Spreuwenberg and Sharon Koh, founders of 1839 Asset Management, and will be supported by 1839 Asset Management’s former operations team. 1128 Capital will manage all new lending and other private mortgage-related activity moving forward. “We are thrilled to formally join forces with A-CAP as 1128 Capital. In this new venture, we are building upon 1839 Asset Management’s advisory and capital partnership with A-CAP, which dates back more than five years. We are confident that A-CAP’s broad knowledge of real estate coupled with their deep expertise across the finance and technology industries will position 1128 Capital as a leading lending platform,” said Sharon Koh, CEO of 1128 Capital. “A-CAP’s knowledge of and commitment to private mortgage investing makes them an ideal partner for our business. Combining the organizational resources and strengths of our respective teams will create value by laying the foundation for future expansion in targeted products and markets. We are excited about working together on this joint venture.” added Vincent Spreuwenberg, CIO of 1128 Capital. “Sharon and Vince are proven operators whose presence in the private mortgage market far predates the current influx of capital and interest in the space,” said Kenneth King, Founder and President of A-CAP. “We expect 1128 Capital to accomplish great things in 2022 and beyond and are very pleased to be partnering with the management team.” About the Principals of 1839 Asset Management Sharon Koh and Vincent Spreuwenberg established 1839 Asset Management in 2013 to originate and manage private mortgages for a diversified investor base. During 1839 Asset Management’s operating history, they issued and managed mortgages with principal balances totaling more than $530 million. About A-CAP A-CAP is a holding company owning multiple insurance and financial businesses on its unique and synergistic platform. These businesses include primary insurance carriers, an SEC registered investment adviser, reinsurance vehicles, and marketing organizations. With broad knowledge across the insurance and investment sectors, A-CAP’s management team has diverse experience and provides comprehensive services to policyholders, insurance company clients and capital partners. Launched in 2013, A-CAP is a privately held company with offices located in New York, Charleston, Chicago, and Salt Lake City. For more information, visit www.acap.com.

For More Information, Contact: Sharon Koh, CEO, 1839 Assest Management LLC sharon@1128capital.com | (646) 350-3581 February 2022 Originate Report 41

PRESS RELEASE

Liquid Logics and Geraci LLP’s Lightning Docs® Announce Integration Liquid Logics clients now have access to attorney-approved business purpose loan documents through the use of Geraci LLP's Lightning Docs Platform. Lee’s Summit, MO, 02/03/2022 – Liquid Logics, a NextGen FinTech company offering a fully cloud-based SaaS Loan Management System to facilitate growth and minimize workload for private lending businesses, announced a new integration with Lightning Docs®, a proprietary cloud-based loan document generation system developed in-house by the attorneys and partners at Geraci LLP. This product connection between top private lending industry vendors will enhance the Liquid Logics user experience. "For over 5 years, we have partnered with Geraci to embed their doc packages into our flagship SaaS lender solution platform,” said Sam Kaddah, CEO of Liquid Logics. “Our newest integration with Lightning Docs brings yet another interactive component of continually updated doc sets. Now, our Liquid Logics clients can harness the power of current doc sets with the easiest, most comprehensive SaaS solution from cradle to investor returns." Nema Daghbandan, Esq., Partner, Geraci LLP, stated: “Liquid Logics is a pioneer of bringing an end-to-end technology solution specifically to the private lender marketplace. Their platform provides a single solution from sales pipeline management, through underwriting all the way to closing and post-closing. With this integration with Lightning Docs, Liquid Logics provides their users with the ability to harness the power of Geraci LLP’s nationwide gold standard business purpose loan documents.” Over the past 18 years, Liquid Logics has established itself as a leading vendor for the private lending industry. Their integration with Lightning Docs will further secure this foothold by improving their overall client experience. About LendingWise Liquid Logics is a NextGen FinTech company offering the only true fully cloud-based SaaS Loan Management System: a CRM/lead pipeline, LOS full workflow, processing, automated credit & underwriting, servicing, reporting, closing DOCS, and 3 types of fund pool management structures. Although they have over $8 billion in loan origination and servicing software, it only describes something they do – it does not define who they are. At Liquid Logics’ core, they are a business solutions company dedicated to facilitating growth, minimizing workload, and making lenders’ businesses the best they can be. For more information, please contact the Liquid Logics sales team at sales@liquidlogics.com or call 1-816-6520301. For media and other inquiries, contact Liquid Logics’ CEO Sam Kaddah at sam@liquidlogics.com or 816-600-0254. About Lightning Docs Lightning Docs is a proprietary cloud-based loan document generation system developed in-house by the attorneys and partners at Geraci LLP. Lightning Docs permits its clients to generate business purpose loan documents nationwide at the click of a button. The system will generate any business purpose loan documents including bridge, fix and flip, ground up construction, DSCR rental, portfolio rental, etc. The documents have been used for numerous rated and unrated securitizations and are considered the industry standard for the private lending industry. For more information about Lightning Docs please visit https://lightningdocs.com/ or contact Nema Daghbandan at nema@geracillp.com or 949-379-2600.

For More Information, Contact: Sam Kaddah, CEO, Liquid Logics sam@liquidlogics.com | (816) 600-0254 | https://www.liquidlogics.com/

PRESS RELEASE

Callodine Group Announces Acquisition of Thorofare Capital

• Acquisition of Thorofare adds real estate expertise to the Callodine platform and expands the firm’s capabilities in yield-oriented investment strategies • Strategic partnership with Callodine will strengthen the existing Thorofare platform and support its next phase of growth

BOSTON, MA and LOS ANGELES, CA - December 14, 2021 - Callodine Group (“Callodine”), an asset management firm focused on yield-oriented investment strategies, today announced that it has entered into a definitive agreement to acquire a majority stake in Thorofare Capital (“Thorofare”). Thorofare is a leading real estate investment firm, managing over $1 billion in assets under management (“AUM”), with offices in Los Angeles, New York, Miami and Dallas. In connection with the closing of the transaction, Thorofare will become the real estate arm of Callodine Group, with the full team of 23 employees continuing with the firm. Thorofare’s management team, investment committee and investment process will all remain intact, with Callodine providing strategic guidance and capital resources to the business. “When choosing a strategic partner, our focus was to identify a company that possesses a strong corporate culture, credit discipline, and an investor-centric approach to position Thorofare for accelerated, long-term growth as we enter the next chapter of our business,” said Kevin Miller, founder and CEO of Thorofare Capital, “We found all of those attributes and more in the Callodine team. The opportunity set we see before us at Thorofare is significant, and we are excited to enter the next phase of our firm’s growth with a partner like Callodine that will work alongside us to achieve our shared goals for the future.” “We are incredibly fortunate to have the opportunity to partner with the Thorofare team and help them take what we believe is already a best-in-class real estate investment firm to the next level,” said James Morrow, founder and CEO of February 2022 Originate Report 43

Callodine Group. “The entrepreneurial spirit with which Kevin, Brendan Miller and the rest of the Thorofare team have built their business directly aligns with our core values here at Callodine. We look forward to working together in the pursuit of compelling investment opportunities and thoughtful growth for years to come.” The transaction is anticipated to close by year end. In the coming months, Thorofare Capital will transition to the Callodine Thorofare brand name. Berkshire Global Advisors LP served as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to Thorofare. Aviditi Advisors served as strategic advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Callodine. About Callodine Group Callodine Group is an asset management platform specializing in yield-oriented investment strategies. The firm has the ability to invest across the capital structure in multiple asset classes and pursues income-oriented investments that provide high cash yields with the potential for equity-like upside. Callodine’s asset management subsidiaries target investment strategies across public equities, private credit and real estate on behalf of its investor clients. For additional information about the firm, please visit Callodine’s website at www.callodine.com. About Thorofare Capital Thorofare Capital, Inc. is a national, vertically integrated commercial real estate investment manager. Headquartered in Los Angeles with additional offices in New York City, Miami and Dallas, Thorofare manages over $1 billion in AUM. The firm focuses on $10 million to $100 million financing transactions, targeting value-add and opportunistic acquisitions, recapitalizations, and distressed debt secured by transitional properties. The Company’s affiliate, Thorofare LLC, is an investment adviser specializing in alternative fixed-income opportunities through U.S. commercial real estate debt investments. Thorofare has originated over $3.3 billion in transactions since firm inception in 2010, across more than 12 property types throughout 32 states. For additional information about the firm, please visit Thorofare’s website at www. thorofarecapital.com. Forward-looking statements and additional disclosure The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. Any forward-looking statements herein are made only as of the date of this press release, and the company assumes no obligation to update any information or forward-looking statement contained herein, except as required to be disclosed by law. AUM includes both regulatory assets under management and loan assets serviced in non-investment advisory accounts as of December 13, 2021.

For More Information, Contact: Tyler Bak, Head of Business Development at Callodine Capital Management ir@callodine.com | (617) 880-7491 | https://www.callodine.com/

PRESS RELEASE

Parent Company of AXY Wrap™ Names Bryce Malone Chief Operating Officer NEW YORK, Jan. 20, 2022 /PRNewswire via COMTEX/ - NEW YORK, Jan. 20, 2022 /PRNewswire/ -- CRE financial firm, Axylyum Charter, has announced that Bryce Malone has been appointed Chief Operating Officer. The parent company of the portfolio-wide, growth enablement product, AXY Wrap™, he formerly held the title of Managing Director. "Since the company's inception, Bryce has been an integral part of Axylyum's rapid growth. His experience in business strategy and operations is key in supporting our firm's evolving needs. His promotion to Chief Operating Officer is well deserved. I am proud to work with such an honorable professional and look forward to what the future holds," stated Serge Petroff, CEO of Axylyum Charter. Known throughout the private lending space, Bryce's experience includes over 25 years in the mortgage and financial services industries. Previously, he held the title of Vice President of Operations for First Residential Mortgage, dba Surepoint Lending, where he led a staff of nearly 200 mortgage professionals. From there, he made the transition from broker to banker, producing an average of $168MM monthly. At Surepoint Lending, Bryce oversaw all operations with a focus on investor and warehouse relations, secondary markets, impaired assets, and legal and compliance. In further developing impaired assets monetization, Mr. Malone became a Managing Partner for Right House Capital, a leading default asset liquidity company, where he later sold his stock options. "AXY Wrap™ has really shaken up the industry—in the best possible way—and is being talked about in most private lending circles. It isn't easy to achieve what Axylyum has accomplished in such a short period of time. I am extremely proud of our success," stated Bryce. A first for the industry, AXY Wrap™ enables lenders to expand their businesses by removing default risk – ultimately decreasing servicing expenses, carrying costs, and property disposition time. The firm recently announced that $500,000,000 in default protection was secured with AXY Wrap™ for Capital Mortgage Services of Texas, one of the largest private lenders in the country. The firm has been mentioned in notable publications such as The New York Real Estate Journal, National Mortgage News, Mortgage Banker Magazine and Globe Street. They are proud members of the American Association of Private Lenders and the National Private Lenders Association. About Axylyum Charter: Axylyum Charter has disrupted the commercial lending space with their growth enablement product, AXY Wrap™. Specifically designed for private money lenders, AXY Wrap™ supports portfolio expansion by removing default risk.

For More Information, Contact: Lauren Lorey, Media and Communications Director, Axylyum Charter llorey@axylyum.com | (516) 386-3810 | https://axylyum.com/ February 2022 Originate Report 45

PRESS RELEASE

LendingWise Announces Integration with Lightning Docs®, GERACI LLP’S NATIONAL LOAN DOCUMENT GENERATION SYSTEM LendingWise and Lightning Docs partner to revolutionize the loan documentation customer experience. Miami, FL, 01/28/2022 - LendingWise, a web based, all-in-one CRM, LOS, Servicing and Marketplace platform used by lenders and originators of all sizes, announced a new integration with Lightning Docs®, a proprietary cloud-based loan document generation system developed in-house by the attorneys and partners at Geraci LLP. "Geraci's Lightning Docs integration makes it easy to generate loan documents using the loan origination data inside the LendingWise system. We are excited that there will be no more manual data entry or human errors," said Chris Fuelling, LendingWise Founder & CEO. Nema Daghbandan, Esq., Partner, Geraci LLP, shared a similar sentiment: "LendingWise continues to be a highly customized technology solution for private lenders. Their integration with Lightning Docs demonstrates a willingness to stay focused on the customer experience and provide seamless technology from end to end.” With over 15 years of experience in this space, LendingWise is continuously striving to revolutionize the customer experience. Due to their integration with Lightning Docs, LendingWise has secured its spot on the cutting edge of the loan document space. About LendingWise LendingWise is a web based, all-in-one CRM, LOS, Servicing and Marketplace platform used by lenders and originators of all sizes. At the core of our system is a point-of-sale system that is turnkey and configurable to almost any loan product. LendingWise makes it easy to intake a custom loan application and automate the collection of required docs and workflow steps. Transferring or sharing a loan file via the deal room will speed up loan closings or post-closing investor sales. Fintech innovation runs deep in their DNA as they continually evolve the platform based on an ever-shifting lending landscape. LendingWise’s clients' needs and pain points drive them to constantly improve the user experience, reduce transaction cost, and closing time. About Lightning Docs Lightning Docs is a proprietary cloud-based loan document generation system developed in-house by the attorneys and partners at Geraci LLP. Lightning Docs permits its clients to generate business purpose loan documents nationwide at the click of a button. The system will generate any business purpose loan documents including bridge, fix and flip, ground up construction, DSCR rental, portfolio rental, etc. The documents have been used for numerous rated and unrated securitizations and are considered the industry standard for the private lending industry. For more information about Lightning Docs please visit https://lightningdocs.com/ or contact Nema Daghbandan at nema@geracillp.com or 949-379-2600.

For More Information, Contact: Rob Rudolph, Director of Sales, LendingWise rob@lendingwise.com | (786) 755-1040 | https://www.lendingwise.com/

PRESS RELEASE

Rapidly Expanding Lender, Aureus Finance Group, Names New CIO & Head of Strategy WESTLAKE VILLAGE, Calif., Jan. 27, 2022 /PRNewswire via COMTEX/ - WESTLAKE VILLAGE, Calif., Jan. 27, 2022 / PRNewswire/ - Aureus Finance Group has disrupted the investment lending space with its fast-paced expansion and acquisition of well-respected talent from across the financial landscape. Aureus has successfully built and recruited an executive team with the unique ability to combine a savvy business sense and smart risk management strategies – this, mixed with compassion for the borrower's goals, sets them apart in the private real estate lending industry. Taking shine to more service-focused methodology, Aureus takes its stand on "Bringing Back the Gold Standard" of business – where borrowers and brokers are met on their ground with concierge-style focus. As the new leading private lender for residential real estate investors and developers, Aureus' growth is more than significant. For Derrick, this was more about "...getting the chance once again to work with some of the best and brightest in the industry..." As a woman-led business, the noteworthy firm has made headlines not only with their expansive offering but now with an even more tenured leadership team and an impressive record of early growth. Aureus has certainly distinguished themselves in the lending space. Aureus' products span from bridge lending to ground up construction – for both resell and hold models, as well as 30-year rental loans for single assets, portfolios, and multifamily properties. Aureus Finance Group has more than doubled their national team within Q1, thus far. Adding to their executive leadership, Derrick Grüner, Esq. joins as Chief Investment Officer and General Counsel. Grüner, formally COO at Apollo Square Capital, brings more than thirty years of law and real estate experience to the firm. CEO & Founder, Trixy Castro has stated: "… it was a natural choice, as Derrick has been part of our family of companies previously and his commitment to service and community is unparalleled". Grüner was Chief Legal Officer for Ms. Castro's previous success, Genesis Capital. For Derrick, he said the move was more about "…getting the chance once again to work with some of the best and brightest in the industry, friends I've been in the trenches with and can trust when it matters, this feels more like coming home", Grüner stated. Ryan Sailor also joins the impressive firm as their Head of Strategy. Mr.Sailor was previously Managing Director at a boutique consulting firm performing over 200 consulting engagements for M&A buy-side due diligence, equity investments, approval and renewal of large credit facilities, and other related capital market activities. Mr. Sailor brings a wealth of knowledge to Aureus having worked extensively in the private real estate lending sector for several years. Sailor stated: "I'm thrilled to help the incredibly talented team at Aureus execute several strategic initiatives across the organization to take advantage of our strong momentum and establish additional growth opportunities." When asked about their expansion, Aureus President, CJ Russell said: "Acquiring the right talent is the most important key to our growth. Looking forward to what we are set to accomplish in the months ahead."

For More Information, Contact: inquiries@aureusfg.com | (805) 220-43460 | https://aureusfinancegroup.com/ February 2022 Originate Report 47

WE PROVIDE PEACE OF MIND Geraci LLP is a full-service law, media, and consulting firm, specializing in representing non-conventional lenders.

OUR SERVICES CORPORATE & SECURITIES • Securities Offerings and Compliance • Entity Formation • Corporate (Governance, M&A, Capital Marketing) • Mortgage Licensing

LITIGATION & BANKRUPTCY • Judicial Foreclosure • General Business Litigation (partnership, investor, and vendor disputes) • Creditor Representation in Bankruptcy • Other Mortgage Loan Litigation

BANKING & FINANCE • Foreclosure/Loss Mitigation • Nationwide Loan Documents • Nationwide Lending Compliance • Lightning Docs - Fully Automated, Customizable Loan Documents

LIGHTNING DOCS • Fully Automated, Customizable Loan Documents • Documents Constantly Updated and Approved by Local Attorneys • Available in all 50 States • No Re-Draw Fees, Upfront Costs, or Contract Period

GERACI MEDIA • Conference Line Tailored to the Non-Conventional Lending Industry • Originate Report Magazine • Lender Lounge Podcast

CONNECT WITH US (949) 379-2600 90 Discovery Irvine, CA 92618 https://geracilawfirm.com/ • https://geracicon.com/ • https://lightningdocs.com/ 48

Originate Report - February 2022

Articles inside

The Founders of 1839 Asset Management and A-CAP Announce Launch of Joint Venture 1128 Capital to Serve Growing Demand for Private Mortgage Lending

Why are you NOT originating DSCR loans?

Technology that Connects, Bridge Loan Network

CoreVest: A Longtime Player in the Now-Trendy Build-to-Rent Market

Temple View Capital: Expertise Across the Investment Spectrum