Originate Report- April 2018

APRIL 2018

Welcome to

MIAMI!

THE OFFICIAL MAGAZINE OF GERACI

Life , Love &

Real Estate

CAPTIVATE EAST Stay Tuned for More Info: www.geracicon.com

Save the Date

OCTOBER 16-18, 2018

Cities to Watch: Miami, Florida

Also Inside April: Relationships:

LIFE REALTORS CREDIT UNIONS INVESTING & RETIREMENT www.originate.report 1

2 Originate Report | April 2018

ANTHONY GERACI CEO/Editor

RUBY KEYS Marketing/Editorial Director

JOHN PELACHE Account Executive

ALICIA CARTER Marketing Coordinator

DAVID BASEN • MAX BERGER Marketing Assistants

PAM HUBER Art Director

CONTRIBUTORS Max Berger • Edward Brown Anthony Geraci • Dina Kroshkin Michael Miller • Scott Liming JT Terrell

FOUNDING UNDERWRITERS

Letter from the Editor As of the writing of this letter, the Feds expectedly rose interest rates for the 6th

time since it was near-zero during the recession. With the recession behind us,

we start to look ahead to where the next opportunities (and potentially the next downturn) comes from.

MARK HANF President, Pacific Private Money

We’ve ramped up our content and we hope you agree. We’re bringing you new contributors, including JT Terrell with Petra Coaching, Dina Kroshkin with CU

Business Group, and Edward Brown, the host of “The Best of Investing” on KDOW. Further, I hope you find Scott Liming’s story and the challenges he has faced both interesting and enlightening.

DAVID OWEN CEO, A List Partners

ORIGINATE ONLINE www.originate.report

GERACI ONLINE

Finally, THANK YOU to all of those who answered our pass-through survey.

Our readership is important to us and the answers you provide helps us adjust

our magazine to make sure we deliver you the most value possible. Keep letting us know what we can do to bring you that value, and we promise we’ll keep delivering!

www.geracilawfirm.com Interested in advertising in Originate Report? Please reach out to John Pelache at John@Originate.Report or (949) 379-2600

Anthony

For Advertising Submissions, Article Submissions, and Inquiries contact Submissions@Originate.Report

ORIGINATE MAILING ADDRESS Geraci LLP 90 Discovery, Irvine, CA 92618 PHONE (949) 379-2600

GERACI CONFERENCES www.geracicon.com www.originate.report 3

contents april 2018

Features

14 Three Ways to Use Real Estate Investing to Save Money for Retirement

Set yourself on the right path with these three tips

By Michael Miller, 5 Arch

16 Partner with Credit Unions for Take-Out Lending Plan

Consider an often-overlooked partnership opportunity

By Dina Kroshkin, CU Business Group, LLC

10

18 Simple Ways to Develop Realtor Relationships

Seven simple traits to help you build your referral sources

By Originate Report Staff

20

20 What’s the Risk?

Adding mortgage investments to your client’s investment portfolio

By Edward Brown, Pacific Private Money

Special Features

8 Anthony’s Rules for Success

Relationships are the Essence of Life The challenges of networking

By Anthony Geraci, Geraci LLP

10 Essay

Lessons in Life, Love & Real Estate

18

26

A discussion with Scott Liming of Iron Oak Home Loans

22 Get $#!& Done with JT Terrell

Who Are You?

26 Cities to Watch

Miami, Florida

By Max Berger, Geraci LLP

28 Upcoming Events 30 Loan Home

4 Originate Report | April 2018

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ANTHONY’S RULES FOR SUCCESS

Relationships are the Essence of Life

By Anthony Geraci, Geraci LLP

“O

ne of the challenges of networking is everybody thinks it’s making cold calls to strangers. Actually, it’s the people who already have strong trust relationships with you, who know you’re a dedicated, smart, a team player, who can help you.”

– Reid Hoffman

As I think about how much we’ve grown in the past year, I start to wonder whether everyone has heard this one. For those who have been around awhile, I apologize as you’ve heard this before, but here it goes….

Think about the last thing you bought besides groceries.

Whom did you buy it from? All things being equal, would you buy from a friend or stranger? Friend. Of course you would. Why? Because you trust them. Be-

8 Originate Report | April 2018

cause relationships matter. You’ve probably heard me talk about this often, so I’ll save you the speech, other than you must always keep in mind that the transfer of trust is one of the most powerful skills you can master.

But we’re here about relationships and why they matter. Whether you’re religious or not (and I’m so very thankful we have a mixture of both to share diversity of opinions with each other), there are definitely ob-

servations of a secular matter that you can make. zFirst, for some reason, we all want to live together instead of living alone. Why is that? We could just as easily live in caves far away from one another. Why do we live together in cities? Because we are tribal in nature. Call it religion or Darwin, we need each other. There was a study done about babies – they need to have touch or they don’t develop properly. WE need to have touch. I don’t care whether you’re a “touchy-feely” person or you can’t stand to be touched, we all need love, hugs, etc.

We need each other.

So if you ask me what our vision is, it is that we are banking on the fact that biological development is slower than technology in the sense that relationships will matter, people will matter, and those interactions are the essence of life.

ABOUT THE AUTHOR: Named a Super Lawyers® Rising Stars in the legal field, Anthony Geraci is the managing shareholder of Geraci in charge of firm strategy and development of Geraci’s team and culture. He is skilled in mortgage lending and securities law and has authored numerous articles on real estate finance and security subjects. Mr. Geraci is a leader in creating national mortgage pools and mortgage funds as well as sophisticated net branching arrangements among several mortgage companies. Mr. Geraci is also an active member and a member of the board of directors of EO (Entrepreneurs Organization).

CONTACT: (949) 379-2600 | a.geraci@geracillp.com | www.geracillp.com

www.originate.report 9

ESSAY

Lessons in Life, Love &

Real Estate Scott Liming, Iron Oak Home Loans

S

cott Liming wasn’t certain what his future entailed when he moved to California in 1983. He had a Bachelor’s degree in English literature, a 1971 Dodge Challenger and a girlfriend he’d followed from college who was attending US Davis veterinary school. He took a job framing new homes in Dixon, CA., sweating in 100 plus-degree August heat.

For $7.50 an hour, the work wasn’t quite what he had envisioned after four years of college.

A visit to an employment agency offered an indoor opportunity working as a manager trainee for Beneficial California Inc. But for Scott, it didn’t matter much what the job was. When 10 Originate Report | April 2018

the District Manager offered him $250 per week and asked if he had any questions, Scott had one: “When can I start?”

You never know when one small pivot in your every day life can launch you into a new direction that affects your career success several decades later. Today, more than 30 years later, he has navigated the finance industry, endured the meltdown of 2008, and now has a secure and thriving private lending company, Iron Oak Home Loans, Inc. in San Ramon, Calif. We spoke with Scott about his unlikely introduction to finance, his business trajectory and his personal venture in finding his biological parents.

Originate Report: How did you manage your first job without any background in finance?

Scott Liming: Beneficial California Inc. was a wonderful education in learning how to manage a portfolio and make non-prime loans. With Beneficial, your office was an independent entity within the corporation, so you were your own profit center. You made loan decisions up to a certain amount and serviced the loans in your portfolio. If a borrower did not make the loan payments, then you had to collect them. If it was a personal loan, you had to file small claims. If it was a mortgage loan, you filed the foreclosure. If you got the property back through the foreclosure, then you had to sell it. Your office performance was measured on your profitability. So it was a great place to get a fundamental background for building and managing a mortgage loan portfolio. After Beneficial, I was hired by the start-up sub-prime lender New Century Mortgage. As the Regional Vice President, I was asked to start and develop the Northwest Region (Northern California, Washington, Oregon, and Utah).

I built the territory from the ground up and hired sales managers, wholesale loan representatives, operations staff, underwriters, and account managers. From there, I started subprime mortgage lender Everest Mortgage.

My former boss at Beneficial (Jim Schukle) came to work for me at Everest. This was at a time when making

OR: What was your focus then and how did it change over the years?

SL: As I mentioned, we started out as a traditional mortgage brokerage. We were doing private money on a case-by-case basis with our own money. The way we would fund private money second mortgages was very specific. Back in the early 2000s, you could have perfect credit but your scores would be low if the balances on your credit cards were high relative to your high credit.

So with people who had a lot of equity, we would make them a 2nd mortgage and pay off all their credit cards.

Once you paid off those bills, the credit scores would shoot up within a couple of months, and we could then provide the borrower with a conventional refinance.

Through 2008-09, money got real tight. It was very difficult to get conventional loans. Subprime lenders were effectively out of business. We converted the core business of the company to private money at the right time. We had a lot of connections and knew a lot of people with money and approached them to invest with us. We’ve built our business on referrals and with repeat clients – relationship lending. No marketing at all. It’s really been far and above our expectations. We are just under $92 million that we service, and we’ve had very little delinquency over the past 10 plus years. It’s been an amazing run; we’ve been very fortunate because we were in the right place at the right time. That’s pretty much the journey to where we are today. Basically the market crash forced us to become a money lending company.

subprime loans was like shooting fish in a barrel – it was so very easy. Recent college graduates and people with little or no experience in the mortgage industry were passing the real estate exam, getting a DRE license, and calling themselves “mortgage professionals” (and making a great deal of money). And we were making a good living, but not like those new “mortgage professionals”.

Both of us had been in the industry 14 plus years and had been long time friends. We started Iron Oak Home Loans Inc. as a typical “A” paper and subprime mortgage office in Dublin, Calif. with one computer to share.

We each put in $2,000 to start the company and never looked back. We really flourished during the boom of subprime lending and the crazy “A” paper loan days.

Then we had the mortgage crisis. In the early part of the 2000’s, I’d be working a 15 loan pipeline consistently.

When the mortgage debacle took place, we each had one to two loans in our pipelines and decided that we needed to do something different or start working out of our homes. So we converted the company to private money lending and servicing.

Rich Mendoza, Iron Oak CFO and co-founder of the private money company, is also a long-time partner and friend who joined us in 1999. We work really well together. We share core values and a common underwriting and portfolio management approach.

OR: Tell us about the appreciation and depreciation trends in your region (Northern California) and how you address them.

SL: We’ve built our portfolio within 90 miles in any direction from my office. We’re not in any other states. We like that. We lend in a market area that we’re familiar with. We know the trends of values, and we can mitigate potential risk. For example, when the market crashed, properties in Antioch dropped up to 75%. In San Francisco, some areas dropped 10%-20%, while other areas in San Francisco did not drop at all. When you make loan decisions, you need to understand the value trends of the areas that you lend in. We’ll go 70% loan to value max. But in certain areas we won’t lend 70% LTV because we are familiar with previous depreciation trends.

And we can mitigate risk by knowing our market areas.

Places like San Ramon and Pleasanton and Dublin are all strong market areas. But even in Dublin, which is the next town over, the values dropped 40% at the low point. Will those things happen again? Probably not, but we know it’s possible.

you could be in a totally different market area, and those comps would support a value that isn’t accurate. That’s happened a lot. I’ve spoken about this at conventions.

I have warned people that appraisal can be one of the most manipulatable documents in our industry. I’ve always encouraged private money lenders to do their own research when to comes to determining value…go look at the property you lend on and get to know your market areas where you provide private money financing.

Use your own judgment from research and facts when determining the value of the property. Every loan we do, we get in the car and drive to look at the property.

We drive by current sales. It’s our investor’s money that we’re lending. It’s not Bank of America’s or Wells Fargo’s money, it’s individuals’ hard-earned savings, and we have to be very cautious when putting their money into a private money loan.

By incorporating this common sense approach, we are pleased to say that we have never had a loss. Not even close. We’ve taken back two properties in the last 10 years, with the last one about seven years ago, and on both of them, the investor made money.

OR: Let’s talk about the forecast for 2018: Higher mortgage rates, more homes on the market — are you seeing this now?

SL: If interest rates go up, then that reduces buying power because people can’t qualify for as big a loan as they can when rates are low. We have not been affected in any way by any of it. We’ve been very fortunate. We are a relationship lender, and a large part of our monthly business is repeat or referred borrowers. We built our company on these types of deals. The market needs to flatten out, and I think it’s going to.

Today you have to come in with skin in the game. You have to make a down payment and people are not willing to walk away from properties when they have purchased with a 30% down payment. The loans that will be affected going forward are FHA loans because you only have to put 3.5% down. If values drop and people struggle, those are the loans they’ll walk away from.

OR: How do you define and care for your clients?

SL: We are not actively marketing and have not for many years. I have a stable of consistent flippers and referral sources who have performed brilliantly over many years…Speed, ease, and convenience for the borrowers.

We try to make it so easy for them, especially clients who have been working with us for 3-5 years. For seasoned repeat flippers who have performed well with us, I keep it simple and ask for three things: purchase contract, prelim and insurance, and then I ask them when they need to close. Sometimes it’s three days, sometimes five. It’s all about the service side of it. But we always have that one critical component: the big down payment. The down payment and the strong historical performance are the two things that allow us to perform so quickly for our clients.

OR: What can other regions of the country learn from your region?

SL: When values go down, it helps to know the areas that will get hit the hardest and why. San Francisco has a finite amount of real estate. That area is always in high demand. But if you weren’t familiar with an area, and you see sales within a half-mile away that are on the other side of a freeway or border a different zip code, Scott Liming continues on page 12

www.originate.report 11

Scott Liming continued from page 11

With investors who have been funding loans for us for many years, they often ask us only two questions: How big is the loan and when do you need me to fund? And I’ll say, “Wait a minute, let me tell you about the loan!”

And I make sure they listen to me and understand what we’re lending on and what they are funding. Then we have other investors who want to see the whole loan package. We try to make it very easy for them as well.

Because of our track record, we continue to attract more and more investors because our investors refer their friends and family. It’s remarkable.

OR: Let’s talk about two actions that set Iron Oak apart: You’ll fund loans that conventional lenders won’t, and you give instant approval.

SL: We have three criteria: collateral (including 30% down), ability to pay and exit strategy. We want to make sure the borrower can make the payments because we are not a loan-to-own company. We do not want foreclosures. We want payment stream for our investors. That’s what our investors want. We can get pretty creative when putting loans together. For example, I received a loan request from one of our borrowers in Southern California. She lives in a gated community in Monarch Beach. She and her husband bought their home about 20 years ago and own it free and clear. They also own the lot right next door to their home. They have a commercial building in Fullerton that is also debt free. I collateralized both properties, approximately $1.7 million in collateral, and made her a $700,000 loan. It’s a unique scenario, and a lot of people might not see the security involved and how that loan made sense.

In a sentence, we make loans to borrowers or properties that don’t qualify for conventional financing. We fund a great number of flip transactions. If a home has been gutted or maybe the bathrooms and kitchen have been ripped out, well that doesn’t intimidate us. The flipper buying the property was going to replace the kitchen and bathrooms anyway. The current condition at close of escrow of the purchase saved him demo costs.

We do a lot of short-term loans, anywhere from $4-$8 million a month. We’re not a big company. But about a year and a half ago, a close friend — the best conventional loan agent I know, Keith Videtto — asked to come work with us at Iron Oak. I hired Keith as our “exit strategist.” We take $4-$5 million in payoffs almost every month, and they often come from borrowers who obtain conventional refinances. They are people who have good income, good credit, and provided a big down payment when we funded their purchase.

These borrowers came to us initially because they may have had a short sale in the past or had some other reason that prevented them from getting conventional financing when they purchased their home. They simply needed another a year or two before they could get a conventional loan. So Keith reviews our portfolio and works with people who are ready to get conventional

12 Originate Report | April 2018

financing. So now many of those payoffs come from him, which makes us a full-service lender. We’re not just your hard money or private-money lender. We’re your private-money lender who will take you to that final loan you really want: the long-term conventional loan.

And I’m really happy about that.

OR: What are your current business challenges?

SL: We run pretty lean. We have two operations people, an exit strategist, and Richard and me. We don’t want to overstaff because we have seen the tough times in our industry. The loan business can slow down at any time.

As a private money lender you need to be very careful in a market time when values are close to their high point. You don’t want to get drunk on the bouquet of appreciation. Values have been climbing for many years.

And from our experience, you must be careful doing big loans as high-end properties are the ones that can depreciate the most when values start dropping..

Historically real estate values go in seven-year cycles.

We’re on an 8 year upswing. This is the time to be more cautious, not more cavalier. We’re not willing to take high risk. We’re very conservative. When you run lean like we do, time is our biggest asset. If I have a portfolio of loans with high delinquency, I will be forced to spend my time collecting those loans. If I am spending my time collecting, then I’m not using that time originating new loans. Building a good portfolio — one that performs — allows me to spend time originating and maximizing revenue potential.

OR: You’ve recently located your biological parents.

How did you find them, and how has this affected you?

SL: I learned I was born in Boston. I grew up in Marblehead, Mass., a beautiful harbor town 17 miles north of Boston. My adoptive parents wanted to adopt six children. I was the youngest…there were 9 of us at one point. As a kid, I was very entrepreneurial. I shoveled snow, delivered newspapers, mowed lawns, anything I could do to make money. I had a lobster business when I was 12. I also had my own Boston Whaler. I used to go spear fishing for flounder and go door-to-door selling them. I was very fortunate to have been adopted by the parents who made me their son and cared for and raised me as their very own.

Fast forward to about one year ago. I am 56 years old and have no knowledge of my biological parents or any health problems that they might have. I wanted to know if my biological parents were alive. So I sent my DNA sample to 23andMe and Ancestry.com. These compa-

nies put your DNA into a database and match it up with potential relatives who are also in the data base. As luck would have it, my biological aunt had also sent her DNA sample to 23andMe. I spoke with her, and she connected me with my mother. I have now visited with my biological mother and learned that I have other siblings on both my mother and father’s side. I have a half-sister from my father’s side and two younger half-brothers.

Earlier this year, I traveled to Maine to meet my mother and younger half-sister. It was very interesting and went very well. She’s 75 now. It was like meeting a stranger; I thought it would be more awkward than it was. But we just told each other of the experiences of our lives. I told her that I grew in a great family. I told her that I love sports and played college ice hockey and rugby. She was very pleased to hear that I have had a wonderful life, and that there were no grudges on my part. She believed that it may have been a much better life than she could have offered me as a 19-year-old, single mother.

In April, I’m meeting my father in Maryland. My mother talked with his sons, and they support the meeting.

Unfortunately, my biological father has Alzheimer’s. So it is possible that he may not remember me soon after the visit ends. It turns out that my mother’s health is excellent. Her mother had very good health and lived to be 94 years old. I love to hear that.

OR: Nearly everyone in California has a story about how they came to the state. What’s yours?

SL: I went to Hobart College in upstate New York. My girlfriend at the time was an undergrad at William Smith (the sister college to Hobart). She was from Berkeley, CA., and was attending UC Davis veterinary school after undergraduate. When I graduated from college, I got in my ‘71 Dodge Challenger and drove across the country to be with her. She was living with 2 roommates, so soon after I first arrived I moved in with a family in Davis, CA. The parents were respiratory therapists and worked nights, so I was a nanny for their four children for two years. In exchange for caring for the children I received free room and board. When I started Beneficial California Inc., I made $250 a week; it was hard to live on that. So I needed to find something else. Being a nanny was easy. I love children, so the job was simple... watch a little TV and get the kids to bed. So I got to California by following a woman across the country, and I never looked back! And I’m glad I did.

ABOUT THE AUTHOR: Scott Liming is the president of Iron Oak Home Loans.

Previously he served as the Regional Vice President of New Century Mortgage,

creating and developing the entire Northwest Region from the ground up, before forming subprime mortgage lender Everest Mortgage. Mr. Liming earned his MBA in English literature from Hobart College in upstate New York.

CONTACT: ironoak1.com | scott@ironoak1.com | (925) 803-2462

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FEATURE

Three Ways to Use Real Estate Investing to Save Money for Retirement

By Michael Miller, 5 Arch

B

y age 40, you should have three times than leaving their retirement income to the whims of your annual salary saved for retirement, Wall Street,” says Davis. according to many financial advisors.

After you’ve purchased a property and are ready to flip Not there yet? That’s okay. Your career as a loan origi- it, you can roll the funds into your next investment nator provides you with real estate industry knowledge without paying capital gains tax, because IRA income is always tax-deferred. and advantageous connections.

“Given these limitations, many people decide they would rather find funding through a lender such as 5 Arch and maintain the freedom to manage, maintain, rent, and repair the property in whatever ways they see fit,” says Davis.

Be aware: Using your IRA to buy investment property can create a lengthy list of limitations. You can’t claim depreciation on the property, and if the property operates at a loss, you can’t claim the deduction.

properties can help you generate passive income before and during retirement.

“Whether you use your IRA to invest in properties to fix and flip, generate passive income through rentals, or use other people’s money to kick start your endeavors, real estate can form the foundation of a solid retirement plan,” says Steven Davis, CIO and CFO of 5 Arch, a lender to residential investors, mortgage brokers and private lenders nationwide.

Whether you’re close to 40 or have years to go, you can set yourself on the path to a comfortable retirement with these three ideas.

1. Use your IRA to fund a property purchase.

As a loan originator, you probably have access to real estate agents, investors, and even real estate bird dogs who can help you build a lucrative side gig investing in properties. But you may not have the capital you need to invest. That’s where your IRA fund comes in.

You can give yourself greater control over your retirement savings by using your IRA to fund your first investment property. Pick your own investment opportunities within a market you understand, with guidance from your network of real estate experts, rather than a financial advisor or an assortment of mutual funds.

“Using their IRA to fund investment properties puts the power to grow that IRA into the investor’s hands, rather

14 Originate Report | April 2018

3. Use rental properties to generate income.

2. Use other people’s money to launch passive If you decide you enjoy being on the other side of the your real estate investing side gig. desk when it comes to real estate investments, rental

Additionally, you must hire contractors to perform repairs, and hire a property manager to handle all administrative tasks associated with the property.

Due to complex tax laws, you cannot rent the property to relatives, use it yourself, or hire any family members as contractors or property managers. Additionally, if the property needs repairs or maintenance, the money must come from within the IRA, and any income must go back into the retirement account.

“Providing you have a property management agency to handle your rentals, MDUs and single-family homes, rental properties can create a steady stream of passive retirement income,” says Davis.

Best of all, rental property income can scale up or down as your financial needs change; invest in another property for additional income or sell the property for a lump sum of cash.

“Combined with traditional investment savings, rental properties can help contribute to the financial security we all want in retirement,” concludes Davis.

ABOUT THE AUTHOR: Michael Miller serves as the Chief Marketing Officer of

5 Arch and its parent company, 5 Arches, LLC. Prior to this, Michael was the CMO of Epsilon Agency Services and Managing Director of Catapult Marketing. He also co-founded Hyper Marketing, which was later acquired by Epsilon. Mr. Miller lead global strategic initiatives and marketing for MRM Worldwide and advised McCann Worldgroup, as well as other prominent advertising agencies. He has developed global marketing platforms across brands, including JPMorgan Chase, Union Bank, Wells Fargo, Google, Intel, GM, The Home Depot, Lennar, and Tishman Speyer.

CONTACT: mmiller@5archgroup.com

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Write for us. Email submissions@Originate.Report for more information.

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FEATURE

Partner with Credit Unions for Take-Out Lending Plan

By Dina Kroshkin, VP, Loan Originations, CU Business Group, LLC

P

rivate and bridge lenders serve an important role in the commercial mortgage marketplace.

They provide real estate investors and property owners with much-needed financing to help restore properties to stabilized condition, or to allow for cash-out financing. However, these sources typically provide only short-term financing at above-market rates, as private lenders seek to turn over their capital quickly to help finance the next deal.

Unless the property is sold, most borrowers need conventional financing once the property has stabilized. As a mortgage originator, you are in the best position to help your borrower plan their next step and obtain conventional financing once the bridge loan matures. Better yet, with the right partnerships, you can earn fees on both loans, help your client succeed, and build on the relationship for the long term.

One option is to consider an often-overlooked partnership opportunity: credit unions. Yes, credit unions!

Not Your Grandfather’s Credit Union

Credit unions have long been recognized for providing outstanding service. Decades ago, this meant offering savings accounts and personal loans, but little in the way of sophisticated banking products. Over time, credit unions have transformed into full-service financial institutions, and now meet all the personal financial needs of their members, from checking accounts to home banking, auto loans and home equity lines of credit. More recently, credit unions have entered the commercial and small-business lending arena, with a special focus on commercial real estate financing.

Credit unions vary greatly in asset size and lending capacity. While many target smaller borrowers within their local geographic markets, others can handle nationwide loan requests up to $50 million. By statute, federally chartered credit unions cannot charge prepayment penalties, and most offer attractive fixed rate terms of five, seven or 10 years. Credit union loans typically feature 10-year maturities but can go up to a maximum of 15 years, with amortization schedules of anywhere from 15 to 30 years depending on the asset type and loan terms.

16 Originate Report | April 2018

The biggest difference between credit unions and other types of lenders such as banks is their cooperative, member-owned structure and philosophy. Credit unions are individually chartered based on defined fields of membership. Prospective members must meet certain criteria, such as living or working within a specific geographic area, working for a certain employer, or belonging to a common group or affiliation. Not all credit unions face the same restrictions, however. Quite a few have more flexible field of membership requirements and can finance properties nationwide.

Credit unions are all about the relationship. At most cooperatives, loan decisions are made locally, and borrowers enjoy direct access to their originating loan officer throughout the life of the loan. Although credit unions prefer to work directly with their members, many have established strong partnerships with third-parties such as commercial mortgage brokers. In the case of broker-originated deals, the broker represents the borrower during the underwriting process, which typically starts after a joint introduction among all the parties.

What Does Partnering with a Credit Union Look Like?

Typically, private and bridge lenders do not focus primarily on the capacity of the borrower. Rather, they provide asset-based financing. In contrast, credit unions are cash flow lenders and thus look to the borrowers’ and principals’ global cash flow positions as much as the value of the collateral.

Most credit unions require the full and unlimited personal guarantees of all principals with control over the borrowing entity, typically those owning 20% or more.

Prior to 2017, recourse to at least 51% of the total ownership was required by regulation. Following recent regulatory changes, a limited number of credit unions will consider loans with less than full recourse for the very best-qualified credits in their market.

Typical credit union underwriting criteria include: • Minimum debt coverage of 1.25x on gross lease properties (higher for double and triple-net lease proper-

ties, and non-recourse transactions); • Maximum loan to value ratio of 75% (65% or less for limited and non-recourse transactions); • Minimum occupancy of 90%; holdbacks allowed for minor repairs, replacements, and tenant improvements; • Two years plus year-to-date operating statements; • Current rent roll showing lease terms and expirations, plus copies of lease agreements for all tenants occupying at least 25% of the building; • Borrower financial statements and personal financial statements of principal owners; • Three years of tax returns for the borrower and all principals, for calculation of global cash flows; • An appraisal is ordered after the borrower accepts the term sheet and pays the deposit; • A Phase I environmental report is ordered for all purchase money loans and as needed on refinance loans; • Some lenders require a property condition report; and • Most credit unions require professional property management unless the borrower demonstrates a successful history of managing similar types and sizes of property.

Borrowers need your help in securing conventional, long-term financing on their commercial real estate projects. Credit unions are an often-overlooked, but excellent option for take-out loans. Consider this resource the next time you help your property owners and investment real estate clients plan their exit strategy.

ABOUT THE AUTHOR:

Dina Kroshkin is the Vice President of Loan Originations for CU Business Group, LLC, the largest business services credit union service organization (CUSO) in the industry, serving 570 credit unions in 46 states. Dina leads CUBG’s loan origination, correspondent lender and participation programs, designed to maximize financing opportunities for CRE owners and investors, and provide additional lending opportunities for credit unions. CONTACT: dkroshkin@cubg.org | (971) 244-6352.

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FEATURE

18 Originate Report | April 2018

Simple Ways to Develop Realtor Relationships Originate Report Staff

W

ith the Federal Reserve continuing incremental rate increases as the economy grows, mortgage lending rates will follow suit, further reducing the number of homeowners looking to refinance. It is more important than ever for mortgage professionals to forge strong relationships with real estate agents to increase their purchase loan business.

Home purchases have been up, and with a limited supply of inventory in most major markets, developing your realtor relationships is key to maintaining and even increasing your loan originations.

Here are some simple traits that you can hone to help you engage and build up your realtor referral sources.

Honesty

The real estate business is built on relationships, and as they say, honesty is the best policy. Realtors understand that not every buyer is the same and that originators may not be able to close certain types of loans. Being upfront and honest with your real estate partners is one of the best ways to forge a trusting relationship. If there are issues preventing a buyer from obtaining a loan or you are unsure if you can close the loan, be honest with the agent and explain right away alternatives and likely outcomes.

Proactivity

Stay on top of your referral partner’s deals. Be proactive in reporting the status of their loans and keep them informed of developments and timelines. Remember, realtors are out seeking new business as well, and by keeping them in the loop on pending deals, you are taking a little bit of stress off of their plate. Don’t wait for them to call you, as milestones occur, inform the agent and make sure they know what to expect as the loan file progresses.

Accountability

Not every loan will be a breeze to close, and realtors understand this as well as anyone. If a problem arises with a file, be accountable and stand up to find a solution. Let your referral partner know that you are on top of the situation and are working on their behalf to solve the problem and provide a solution.

Provide Value

The market has changed over the years, and originators need to evolve as well. Offering real estate professionals real solutions to their needs will go further than a free lunch and hand-

ful of business cards. Help teach them what you add to the equation without the hype or overselling.

Connection

The mortgage and real estate market relies more on technology now than it ever has. Use the power of social media and the internet to research your market and make connections with local agents. Explore the agent’s territory before making contact so, when you do meet, you can demonstrate confidence in understanding their needs and concerns. If you can offer the types of products that suit the majority of homebuyers in their area, a real estate agent will undoubtedly see the benefit you provide.

Home purchases have been up, and with a limited supply of inventory in most major markets, developing your realtor relationships is key to maintaining and even increasing your loan originations.

Preparedness

You do not have to prepare a speech to show your readiness to provide what your realtor needs. Demonstrating your understanding of their business needs and standing ready and willing to help them grow their business will impress them much more than a speech. Set up a meeting and come prepared to share your thoughts and ideas on how your collaboration will bring real value to their real estate business.

Follow Up

Once you have engaged with a realtor, don’t neglect them. It is unlikely you will get a deal on your first visit, but don’t be discouraged. Stay in contact and be interested in how their business is progressing. Remember, their business is your prospective business. Staying in touch today will increase the likelihood of you receiving referrals tomorrow.

The real estate market was built on partnerships. Realtors need buyers, buyers need loan agents, and loan agents need borrowers. Therefore, building relationships with real estate agents is paramount to obtaining more borrowers and growing your business. However, the benefit must swing both ways. Honing these traits will help you branch out, engage with new real estate partners, and build a more extensive and productive referral network. www.originate.report 19

mortgages will pay interest only, thus keeping the principal intact.

FEATURE

However, all income-producing investments carry some risk, which is often misunderstood, even by sophisticated financial advisors. For example, money market funds generally are only backed by the mutual fund’s integrity to honor the $1 share price because all they hold only short-term obligations, both government and corporate.

However, in the early 1990s, when many corporate bonds went sour, investors suddenly learned their $1 share price was not guaranteed; they could actually lose principal. The mutual fund families that sponsored the money market funds paid out of pocket to subsidize the share prices, thereby preserving the sacred cow.

Adding Mortgage Investments to Your Client’s Investment Portfolio:

What’s the Risk?

By Edward Brown, Investor Relations at Pacific Private Money

I

nvesting in mortgages should not be looked at with trepidation. As with other cash flow investments such as corporate bonds, government notes, or money market funds, mortgage investments can be looked at in the same vein. Mortgage investments have an attractive risk-return ratio in comparison to other income-producing investments. If you choose your investment intelligently, individual short-term mortgages (which I define as first deeds of trust on real estate with 65% loan-to-value (LTV) ratios, maturing in two years or less) are considered more risky than money market accounts or U.S. Treasury bills, but they offer yields at the level of high yield corporate bonds, or even higher with potentially lesser risk.

CHART 1 (NEXT PAGE) shows the general risk* of short-term mortgages as compared to other income producing investments. * Risk in terms of loss of principal tak-

ing into consideration opportunity costs if interest rates rise. Generally, individual mortgages do not trade in the open market; thus, the principal is not subject to market fluctuations (as compared to government T-notes, government notes, and corporate bonds). In addition, mortgages that have a 65% LTV ratio enjoy some protection if the underlying property declines in value. Government notes and bonds have no collateral backing but are backed by the government. Corporate bonds usually have no specific collateral and are based upon the full faith and credit of the issuer.

CHART 2 shows the general return of mortgage investments on a current rate of return as compared to other income producing investments.

CHART 3 is a grid that shows the comparative advantage of mortgage investments over alternative income producing investments when considering opportunity risk/reward ratios by combining Charts 1 and 2.

20 Originate Report | April 2018

For purposes of this article, we have defined the following: • Government T-Bills: 1 year obligations guaranteed by the US Government • Government-Notes: 5-10 year obligations guaranteed by the US Government • Government-Bonds: 15-30 year obligations guaranteed by the US Government • CDs: 1 year FDIC insured • Money Market Funds: liquid mutual funds maintaining a $1 share price • Corporate Bonds: 15-30 year obligations guaranteed by a US corporation rated BBB or better • Mortgage Investments: 1st deeds of trust on real estate with 65% loan-value in two years.

Risks involved in mortgages vary from the other investments that financial advisors might be more familiar with and more due diligence is required. First of all, unlike CDs or U.S. government obligations, mortgage investments are not FDIC-insured and have no government guarantee. Do not confuse these types of mortgage investments with past GNMAs, the pooled investments created by the quasi-governmental mortgage company Ginnie Mae. GNMAs are mortgage-type investments and have a quasi-government backing. By contrast, the mortgages used in the above examples are individual mortgages; thus, the principal is fixed and does not fluctuate unlike GNMAs, which return a portion of principal with each interest payment and trade in the open market and are thus subjected to market volatility. The mortgage investment’s backing is primarily the underlying real estate on which the mortgage is recorded (specific versus blind pool) and almost all short-term

Corporate bonds carry the risk of strength and integrity of the corporation that issued the bonds. Independent rating services such as Standard and Poor’s and Moody’s have misjudged the security of many corporate bonds, through conflicts-of-interest or simple mistakes. Even without misjudgments, the price of a corporate bond fluctuates based on the performance of the company, its industry, and the economy overall. In addition, as interest rates rise, the value of the bonds decrease.

The risks that a mortgage investor faces primarily involve the borrower and the underlying real estate. An investor may choose to work with a borrower with less than perfect credit if there is sufficient equity in the property. Alternatively, a property may be marginal, but the borrower has excellent credit. These are the main factors determining the interest rate that an investor can expect on his mortgage investment.

Another factor in determining the rate on a mortgage is the competition for these types of investments. In the past, they were considered one of the best-kept secrets in investing; no longer. The competition for mortgage investments has heightened to where lenders are competing for loans. This, in turn, drives down the rates.

Good for the borrowers; not so for the investors. On the positive side, what once was considered an illiquid investment has risen to a semi-liquid investment.

Although there is not a trading market for mortgages as there is for stocks and bonds, new companies have come to the marketplace in search of purchasing existing loans; thus, a market has opened up providing liquidity to those holders of mortgages who want to sell their loans. Giving up yield for liquidity has been attractive to some investors. The yield may be upwards of 1% lower for this ability to sell, but many have decided it is worth it.

With the Great Recession now more than five years in the past, many financial institutions have loosened their lending restrictions. This has also caused interest rates to remain competitive for borrowers. However, because of strict regulations with Dodd Frank and the ATR (Ability To Repay) requirements imposed on conventional and private lenders, many borrowers are facing difficulties obtaining the financing necessary to purchase owner-occupied real estate for their primary residence. Otherwise, relatively strong borrowers sometimes have a hard time qualifying under government imposed strict guidelines. With the increase of real estate outpacing borrowers’ income, many potential home buyers are facing the hard fact that they no longer qualify. They face the alternative of either losing the home they want to buy or use a private lending company. In these cases, the lending company provides the loan to purchase the target home while the borrower attempts

CHART 1

RETURN

CHART 2 CHART 3

Higher Return, Less Risk Higher Return, More Risk

Lower Return, More Risk

Lower Return, Less Risk Short Term Mortgages

Govt.

T-Notes

Govt.

T-Bills

Money Mkt. Funds

CDs

Govt.

Bonds

Corp.

Bonds

O P P O RT U N I T Y RISK /REWA RD RATIO to sell the old home. When the old home sells, the proceeds are then used to pay down (or pay off) the target property, thereby putting the borrower in a position to refinance with a conventional lender.

One of the major problems encountered by holders of long-term debt instruments (government or corporate bonds) is not so much the risk of failure, but the opportunity cost during rising interest rates. As interest rates rise, the investor is caught holding investments that are losing principal, albeit temporarily. Sure, these investors can hold on to lower-return investments until maturity, but the price they pay in the lack of opportunity to participate in higher yielding instruments usually outweighs the wait. Of course, in times of declining interest rates, one would be better served to be in the longest-term bond possible and to sell just as interest rates begin to rise. The question then becomes which way are interest rates headed?

One solution for the risk-averse investor is to look to short-term mortgage investments (no more than 5-year

maturities) for relatively high current monthly income (approximately 8% as of this writing). The shorter maturities guarantee the investor will not get caught holding low-interest investments if interest rates rise as the mortgages mature and new ones replace the old ones at the prevailing rates. In addition, if loans are 65% LTV or less, then the value of the underlying property could decline by one-third and the investor’s mortgage is still covered. The investor needs to examine the underlying real estate and ask himself if he would be willing to own it for the mortgage he is considering. For example, if the property appraised for $100,000, would the investor be willing to own it for $65,000 (his investment in the mortgage)? The Great Recession saw real estate values decline; however, they generally did not crash but had a prolonged decrease (3-plus years). Thus, for those holding short-term mortgages, they still had enough equity in their investment and the borrowers either sold or refinanced the mortgage before it declined too much.

Where do investors (and their advisors) find these short-term real estate mortgages? There are lenders

(private money real estate lenders) who provide private financing to borrowers who may not be able to obtain conventional loans. Advisors should primarily deal with lenders who have a good reputation and record the deed of trust. In some cases, investors may want to invest in a specific mortgage because they know exactly which property is securing their investment; however, the down side to this strategy is that there is now a lot of competition for these types of loan investments and one may be sitting on the sidelines waiting for an opportunity to invest. If the investor’s money sits too long (in a low-interest liquid account waiting to deploy funds for a new loan), the blended rate of return after the loan is found and invested in may be lower than if the investor invested in a fund that holds mortgages. For example, if an investor allows his/her money to rest in a money market fund paying 1% and it takes six months to find an 8% note, the average rate of return after one year was only 4.5% as compared to a fund that may pay 7%. Something else to consider is that a fund may allow for a reinvestment of monthly distributions thereby compounding the yield. With an individual mortgage, the lender has to take the monthly payments with no reinvestment allowed. In addition, a fund allows for diversification because the fund has many mortgages, similar to a mutual fund holding a variety of stocks. Because this type of investment is no longer a secret, many individual investors are competing for mortgages. When a broker presents a potential scenario to an investor, that broker usually also sends the same scenario to many other potential investors, as the broker wants to make sure that he can fund the loan in a timely fashion. Many an investor has gotten upset when, after giving the broker the green light for the loan, the broker informs the investor that he was too late and some other investor snapped up the loan.

Many investors choose to invest in a fund to avoid those disappointments. In addition, many funds provide a liquidity feature so the investor can withdraw his money.

Advisors should look for funds that charge no load to get in or out and make sure the manager of the fund’s interests are aligned. One way is for the fund to participate in the points being charged to the borrower.

This lends itself to make sure the manager does not charge a large amount of points (which the manager could retain) and a small interest rate (which is paid to the fund).

Although short-term mortgages and mortgage funds are not the end-all investment, they may play a prominent place in many investment portfolios looking to provide high yields for relatively low risk and the potential availability for some liquidity. Preservation of principal is a key role for many clients, and advisors would be smart to consider short-term mortgages for their clients.

ABOUT THE AUTHOR: Edward

Brown is in the Investor Relations department at Pacific Private Money in Novato, Calif.

CONTACT:

(415) 883-2150 pacificprivatemoney.com

www.originate.report 21

GET $#!& DONE with JT TERRELL

Who are you?

By JT Terrell, Petra Coach

W

hen given the opportunity to write a monthly column for OrigiJT Terrell, Monthly Columnist nate Report, I was intrigued, but not exactly sure where to begin. I have no experience in your industry, with the possible exception of holding a couple of mortgages, and if you asked me what the interest rates are right this second, I would definitely have to “phone a friend.” However, it seems to me that generally speaking, the readers of Originate Report (you) are CEOs and leaders of firms who are very “good” at what they do, but you might not know how to go from just being “good” to being the kind of companies that people tell stories about in 100 years.

So, as we roll along I will bring concepts from the coaching universe that are useful to help your firms become not only functional and profitable, but also remarkable places to work and thrive.

As a quick introduction, here’s a true story describing who I am and what we do at Petra Coach: Over the holidays, I jumped the CTA orange line to Midway bound for San Jose and two days of heavy lifting with an IT staffing firm. I sank into my seat. I was looking forward to 35 minutes of silence, prep work and contemplation when I was disrupted by a fellow passenger asking about my well-worn luggage, and the Petra/Entrepreneur’s Organization travel tags hanging off of it.

22 Originate Report | April 2018

Passenger: “Hey, you must travel a lot?”

My answer: “Always, Bubba.” (I’m from Tennessee and have initials for a name, so ya know.)

Passenger: “What do you DO?”

Me (without hesitation): “I get shit done.”

Passenger(stunned): “Wow!” There is a long pause with a smile. “How?” That answer, my friends, is what we call in the coaching world an attention getter, which precipitated a conversation surrounding the Rockefeller Habits generally (in the book “Mastering the Rockefeller Habits,” author Verne Harnish aggregated the best practices of highly performing firms worldwide into a curriculum that all businesses should follow, and it is our business Bible, for lack of a better term), and Petra Coach specifically.

It’s our unofficial motto and rallying cry. By way of strategic planning, identifying long-term targets and staying involved during the hard work phase, we affect positive change inside organizations. We use the four-decisions framework surrounding people, strategy, execution and cash to align people and get them pulling in the same direction. The industry, employee count, and annual revenues are interchangeable, but the process remains the same. Asking the right questions is as much what we do as the stories we tell, the curriculum we use, or the meeting rhythms we install.

The answer I got back was basic: “In simplest terms, a mortgage loan originator (aka mortgage loan officer, loan officer, LO, etc.) is typically an individual who works with a borrower to complete a mortgage transaction. The mortgage loan originator/officer is usually the borrower’s main point of contact throughout the entire home loan process.”

“It is my pleasure to ask some of the right questions on a regular basis for this publication, in the hopes that you will uncover some new answers for your company and personal development.”

Simple enough and technically accurate, but still I wondered, is that really why they exist? Is that their core purpose? Purpose is defined by Jim Collins (an American business consultant, author and lecturer on company sustainability and growth) as “an organization’s fundamental reason for being…When properly conceived, purpose is broad, fundamental and enduring; a good purpose should serve to guide and inspire the organization for years, perhaps a century or more.”

If your company doesn’t have a stated core purpose, the simplest and best way to do this is to sit down with your team and talk about what you actually do in the marketplace, and then filter that answer by asking the

That story, in a nutshell is who I am, so in an effort to gain insight into OR’s readers, I posed this question to Google: “What specifically do loan originators do?”

Story continues on page 24

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Who Are You? continued from page 22

questions, why is this important and why does it matter?

Once you’ve done that for at least three rounds, you will be left with a simple, compelling statement that will be the answer every time someone asks “why” inside of your organization.

If I asked 1,000 of you for your reason for choosing the loan originator profession, the initial answers would probably revolve around how lucrative it can be and how the fast-paced nature of the industry appeals to your hard-charging personality. But, I’ll bet when pressed a little bit harder, you might say it comes down to seeing first-time homeowners get a mortgage, or more estab-

lished clients succeeding in buying their forever home.

Or perhaps you chose your profession because you enjoy taking the lead on a very complex process and making it as painless and stress-free for the client as possible. Or you’re motivated by the gratification of assisting someone who never thought their credit was worthy of a mortgage and getting them to the finish line.

in your space representing your company, and it will be much easier to find those people now through recruiters, by tailoring interview questions around the purpose, and even searching similar keywords on professional sites. Hiring people whose purpose matches yours creates an environment where people will want to stay long-term instead of jumping to the next opportunity.

So maybe the answer to my original question of “What do loan originators do?” could have been answered with “help people with their dream of homeownership.” Or more simply, “I help people achieve their dreams.” Now that is not only accurate, it’s inspiring — to your potential clients and most importantly to your internal teams.

Leverage that kind of declaration to get the most out your people and strategy in the marketplace.

When you build an organization where helping people is the number one thing, then achieving the goals surrounding the processes and profits will take care of themselves.

The actual mechanics of the mortgage process are what they are, but now that you’ve uncovered your real reason for being, you can bring in the kind of team you want in your organization — people who not only have the requisite experience and education to do the job, but people who have an undying need to help people. You’ve identified that as a trait of the kind of person you want

It is my pleasure to ask some of the right questions on a regular basis for this publication, in the hopes that you will uncover some new answers for your company and personal development. Month after month, I’ll look to entertain, inform and most importantly challenge each of you to bring your very best to each day and to the people whom you are privileged to lead.

Now that we’ve met properly, go get ^*$% done!!

JT Terrell is a big believer in earned trust and the power of planning, and he’s put both into action in his own life and career.

After 10 years as a professional musician, JT founded event rental company Music City Tents and Events LLC in and grew it into an industry innovation leader. JT attributes his company’s success to his work with Petra Coach and the adoption of the Rockefeller Habits. JT is now thrilled to be on the other side, coaching and engaging businesses to help them uncover opportunities, create strategies, and get focused. Reach him at 888-330-1020 x705 or jt@petracoach.com.

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24 Originate Report | April 2018

You’re going places.

Don’t stop until that place is the top.

If you’re a loan originator looking to build your business and gain insight from the nation’s top mortgage brokers, bankers, lenders, and lawyers, Originate Report is for you. Distributed to 35,000 professionals in the private lending industry every month, this is where you come to see and be seen.

To discuss submitting original articles, or for general Originate Report questions, email us at submissions@originate.report.

behind you all the way. find us online at www.originate.report www.originate.report 25

CITIES TO WATCH

Cities to Watch:

Miami, FL

By Max Berger, Geraci LLP

A

Often referred to as “The Capital of Latin

colorful architectural style straight out of the 30s and

its complete integration of American and Cu-

Beach, for a relaxing time by the ocean.

America,” Miami is perhaps best known for

ban culture. This is clear to anyone who has been there

40s. Swing by one of the best beaches in Florida, South Bayside Marketplace: When it comes to shopping cen-

before (just visit Little Havana if you don’t believe it),

ters, it doesn’t get better than a giant outdoor mall that

is also positioned at the center of significant financial

Bayside Marketplace has dizzying

but that influence goes beyond the city limits; Miami and commercial traffic headed into Latin America from

countries around the world. The city has thrived despite dramatic changes to its population and economy,

largely because of its measured response to urban immigration. Today, global trade and tourism are among

Miami’s most lucrative industries; the city possesses a record-breaking concentration of international banks,

and it is the 2nd most popular international tourist destination behind New York City.

Must-visit locations

Miami Beach: If you’re visiting Miami but haven’t tak-

en the time to explore Miami Beach, then you haven’t

Economy:

• Major industries: Financial services, tourism, trade, media • Minimum wage: $8.25 per hour • Cost of Living: 13% above national average

Housing:

• Median Household Income: $45,214 • Median Home Price: $455,000 • Median Rent Price: $2,350

Job Market:

• Forbes List - #84 Best Places for Businesses and Careers • Unemployment: 5.1% • Job Growth from 2016: 2.8% • Loan Originator avg salary: $74,186 (above national average)

sits right on the Miami waterfront. array of shops, cafes and restaurants,

all sorts of live entertainment, and

breathtaking views of the water. It even has tour boats on the docks for a more hands-on tourist experience.

Little Havana and Calle Ocho: Vis-

it the Cuban district to get a taste of Miami’s Latin influences- from the shops and the food to the live music

and art, Little Havana is a cultural hotspot and a great place to spend a day. Calle Ocho is the main street in

the district, and borders some of the most exciting and populated areas in the city.

experienced the city at all. Walk through the beloved

Dining

and restaurants in the area, and take in the vibrant and

ra at Paraiso, with Latin-inspired meals and excellent

Art Deco Historic District to visit the numerous shops

Miami, Florida

Sitting right on the waterfront is the well-known Ama-

cocktails. Don’t miss the Mediterranean cuisine at Bou-

lud Sud, with exciting gourmet dishes like octopus a la plancha and veal saltimbocca. For authentic Cuban food,

try Amelia’s 1931, a recent addition that serves classic Cuban dishes with a twist.

Nightlife – This is one of the best parts of Miami-

the nightlife is among the greatest in the world. Visit Churchill’s Pub first if you need proof. This place is

known for its intense live music and wildly energetic atmosphere, and is a must-visit. Skybar Miami Beach

is popular spot for the wealthy and famous- need I say

more? Finally, go to LIV for a remarkably upscale and prestigious experience at the Fountainbleau Hotel’s nightclub.

Max Berger is a Marketing Assistant at Geraci LLP and supports all marketing campaigns, projects, and events throughout the corporation and contributes to the execution of the firm’s growth.

CONTACT: (949) 379-2600 m.berger@geracillp.com

26 Originate Report | April 2018

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Private lending associ

ering the Lenders (AAPL) is off te iva Pr of n tio cia so As verly 28, 2018 – American at the Sofitel Hotel in Be ch d ar ate M – loc e, o. nc M , ere TY nf CI Co KANSAS the Geraci Activate line. e class at www.aaplon class on May 9, 2018 at th n tio for na er sig ist de reg ) y FM ma (C d an Manager CFM designation tivate ion from the Geraci Ac ers are eligible for the rat mb ist me reg PL te AA ara . sep nia a or es lif Hills, Ca designation class requir m/activate. The CFM .co on cic ra ge w. ww com or Conference.

ment ards to provide invest nd sta al on ssi ofe pr d an will nt theory, ethical from Geraci Law Firm, ustry practices, investme m ind Ki es vin idg Ke br by n t tio gh na tau sig CFM de sive four-stage course, owth opportunity?” gement skills. The inten na ma o oli rtf rtgage fund my next gr po mo d a an “Is , ion analysis est qu t en mmon cli swer the increasingly co prepare members to an d exfundamentals, vision an ol po e ag rtg mo e: lud oing tivate Conference inc g of the fund and on-g n class at the Geraci Ac hin tio nc na lau sig d de an M on CF ati e cre th , Topics of mortgage pool fund alize and administer a pit ca re, tu uc str to w ho ecution, fund administration. de, executive director oficiency,” said Linda Hy pr nt me ge na ma nd fu ers at n of rtunity to AAPL memb important demonstratio po an op is is n th tio er na off sig to de d M “The CF AAPL, so we are please is a strategic partner of m Fir w La ci era “G . of AAPL e.” the Activate Conferenc nual Conference. d outside the AAPL An ere off ing be is n tio na e the CFM desig This is only the third tim l estate and peerresenting the private rea rep on ati niz ga or l na tio L) is the na on for the next genof Private Lenders (AAP on – provide a foundati ati uc Ed & s hic American Association Et e, nc es – Excelle areness, promoting . Its three core principl growth by fostering aw try us ind for t ys to-peer lending industry tal ca a ,a ves as rt of Affinity Worldwide ivate lending. AAPL ser pa pr a al: is pit PL ca AA ate . est hip l ers rea eration of ethics for its memb industry. More informa a standardized code of ate ing est l ag ur rea co ial en nt d ide an res es e best practic pport investors in th ated to empower and su cre ies an mp co of ion de.com. constellat www.affinityworldwi d an om e.c lin on pl aa w. tion can be found at ww email estions please call or qu or ts en m m co l na For additio r Services Marketing and Membe of r cto re Di t, ul ea Br Chrissey of Private Lenders American Association 816-398-4047 om cbreault@aaplonline.c

www.originate.report 27

All event dates subject to change.

Please visit conference websites for agendas and details.

UPCOMING EVENTS

Upcoming Southern California Commercial Real Estate & Lending Conference April 11 • Long Beach, CA www.crelc.com

California Mortgage Association Spring Seminar April 26-27 • San Francisco, CA californiamortgageassociation.org/events/

Activate 2018 May 9-11 • Los Angeles, CA www.geracicon.com

California Mortgage Association Summer Seminar July 12-13 • San Diego, CA californiamortgageassociation.org/events/

2018 Los Angeles EB-5 & Global Programs Convention July 24 • Los Angeles, CA www.eb5investors.com/conferences

28 Originate Report | April 2018

Events Captivate West 2018 August 26-28 • Las Vegas, NV www.geracicon.com

California Mortgage Association Fall Seminar October 11-12 • Las Vegas, NV californiamortgageassociation.org/events/

Captivate East 2018 October 16-18 • Miami, FL www.geracicon.com

AAPL Annual Conference & Exhibition November 4-6 • Las Vegas, NV www.aaplconference.com

Don’t be left out! Showcase your upcoming event here!

Contact Ruby@originate.report for more information.

www.originate.report 29

LOAN HOME

Look for this Lender’s Ad in this issue of Originate Report

30 Originate Report | April 2018

Help Make Dreams Come True Are you a lender? Advertise with Originate Report’s LoanHome and be seen by 35,000 industry professionals each month.

Contact our Loan Home director at j.pelache@geracillp.com or (303)546-7930.

www.cubg.org dkroshkin@cubg.org (971) 244-6352

1M N/A √

√

√

√

√

√

80/30 √

√

√

√

√

√

√

Credit Union Lender

Helvetica Group

www.helveticagroup.com loans@helveticagroup.com (310) 575-3301

100K 10M √

√

√

√

√

√

√

√

√

75/30 √

√

√

√

√

√

√

100K 3M

idg

Br

MA XI

um

er

e Co rpo ra Ac t ion s/ T qu is ru No ition sts/ L tes s a nd ega De l En Pu ve t rch lop ities as me e Re d nts ha b Bla / Re nk mo de et Se Loa led/ co ns Re nd no M va Jo ted int ort g Ve ag Fo ntu es rei r gn es Na Ot t io he na r ls MA XL o Ch an-to urc -Va he lue s/ (% La Te nd ) m ple / MA (B X s/ Au are tom / Co Syn Term ag m (yr o me o Re tive s rci gues ) tai a l (S l/ L h En ot) ter ops/ tai St rip Ga nm Ma s S en lls tat t ) ion Le s isu re Ho (Go sp ita lf Co Mi lity ( urse xe d- Hote s/ M ari ls) Re use sid Pro Indu na) en s p Ra tial er t ie trial In nc s he vest me Se s a n lf-s nd tor Fa t Pro pe r ag Re m rtie s sta e s ura Of nts f ic e

LO MU AN $ Co M mm LO A e r N Co c $ ns ial

UM NI M

www.weapproveloans.com robert@accmortgage.com (877) 349-0501

TYPES OF PROPERTIES WE LEND TO

√

√

√

√

√

80/30

√

Direct Lender

www.jcap.net info@jcap.net (949) 622-6199

250K 5M

√

√

Direct Lender

Pacific Private Money

150K 5M

√

√

√

√

√

√

√

√

√

√

√

70/2

√

√

√

√

√

√

√

√

√

√

√

√

California Properties, 1st & 2nd TD’s

√

√

√

√

√

√

* CA

√

√

70/30

√

√

√

√

√

√ 2018

www.pacificprivatemoney.com loans@pacificprivatemoney.com (415) 883-2150

√

SFR

JCAP Financial Group

* AZ, CA, CO, CT, DE, FL, GA, IL, MD, NV, NJ, NC, PA, SC, TX, VA, WA

* = states lending in

ACC Mortgage

√

*All 50 States

TYPES OF LOANS

MI

LENDER

√

2018

Do you want to find your loan a home?

That home can be found here, in these lenders.

√

*All 50 States

Direct Lender

PRIVATE MONEY LOAN HOME

√

* = states lending in

CU Business Group

MA

MI

NI

LENDER

MU M XI LOA MU N $ Co M mm LO A e r N Co c $ ns ial

COMMERCIAL LOAN HOME Do you want to find your loan a home?

That home can be found here, in these lenders.

TYPES OF PROPERTIES WE LEND TO

um e Br idg r e Co rpo ra Ac t ion s/ T qu is ru No ition sts/ L tes s a nd ega De l En Pu ve t rch lop ities as me e Re d nts ha b Bla / Re nk mo de et Se Loa led/ co ns Re nd no M va Jo ted int ort g Ve ag Fo ntu es rei r gn es Na Ot t io he na r ls MA XL o Ch an-to urc -Va he lue s/ (% La Te nd ) m ple / MA (B X s/ Au are tom / Co Syn Term ag m (yr o me o Re tive s rci gues ) tai a l (S l/ L h En ot) ter ops/ tai St rip Ga nm Ma s S en lls tat t ) ion Le s isu re Ho (Go sp ita lf Co Mi lity ( urse xe d- Hote s/ M ari ls) Re use sid Pro Indu na) en s p Ra tial er t ie trial In nc s he vest me Se s a n lf-s nd tor Fa t Pro pe r ag Re m rtie s sta e s ura Of nts f ic e

TYPES OF LOANS

Direct Lender

* CA

www.originate.report 31

PROVIDING PEACE OF MIND As a full service law firm that caters to the private lending industry, Geraci’s team of bankruptcy, banking and finance, litigation, securities, corporate, and real estate attorneys has provided our clients with peace of mind for over a decade.

Let us deal with the legal side of your business—so you can stay focused on what’s really important.

32 Originate Report | April 2018

Geraci Law Firm | 949.298.8050 | www.geracilawfirm.com