Originate Report - August 2019

AUGUST 2019

THE OFFICIAL MAGAZINE OF GERACI

INDUSTRY SPOTLIGHT:

Noelle Wheeler Nationwide Mortgage

RICH KATZ

INSIDE:

OUT-OF-THE-BOX THINKING IN PRIVATE MONEY

QUALIFIED LEADS

Gregg Bernstein and Richard Katz, Rodeo Lending

SECURITY

DATA COMPARING RENTALS STORAGE, BABY! www.originate.report 1

2 Originate Report | July 2019

CONTENTS AUGUST 2019

FEATURES 16 Know the Essentials On Gathering Qualified Leads Ruby Keys, Geraci Media

18 Storage Baby! Just Do It Dan Kryzanowski, Rocket Dollar

6

21 Knowing The Path Vs. Walking The Path: Why You Should Care About Data Security Ian Group, Prodeal360

28 Comparing Rentals In Different Markets And The Risks Of Low Rent/High Cap Rate Investments Edward Brown, Pacific Private Money

32 Comparing Rentals In Different Markets And The Risks Of Low Rent/High Cap Rate Investments

13

Edward Brown, Pacific Private Money

34 Senator Sanders Introduces Bill That Caps Consumer Interest Rates At 15% Amy E. Martinez, Esq., Geraci LLP

Who To Know 6

16

Rich Katz - Rodeo Lending Charles Peckman, Originate Report

13 Industry Spotlight Noelle Wheeler, Nationwide Mortgage

In Every Issue

18

10 Industry Job Watch 24 Cities To Watch St. Louis, Missouri Originate Report Staff

36 Upcoming Events 38 Lender Directory

28 www.originate.report 3

Revenue diversification

Fix N’ Flip, Bridge, Refinance, Ground Up & Small Balance Commercial

TODAY’S MARKET OPPORTUNITY: •

•

•

100 billion dollar non owner-occupied investment space SFR ’s 1-4 Fix N’ Flip, Bridge, Refinance, Ground Up & Small Balance Commercial Diversify product offering and add new revenue opportunities you may be missing out on Legally compensate your most prized relationships (Realtors) for referrals

WHAT TO LOOK FOR IN A BROKER + CAPITAL PARTNER RELATIONSHIP: • • •

Concierge across product offering with underwriting, training, service and support Dedicated call center for loan origination support and fund control Marketing materials provided including product tear sheets, pitch decks and web banners

In today’s market, refinancings have limited availability and there’s not much new housing inventory to lend against. For mortgage Brokers, this means the obvious; there are a lack of transactions in the market to profit from.

For shops that are only doing refinance or traditional mortgages, opportunities only come around every 5-7 years. You’ve got to have a big client base to have volume. With financial products across SFR ’s 1-4 Fix N’ Flip, Bridge, Refinance, Ground Up & Small Balance Commercial, the sales cycle is faster, there is significantly higher recurring business, and a few lenders have teams dedicated to helping you succeed.

BROKERS, PARTNER TODAY

4 Originate Report | July 2019

Think of it as a new product offering which results in the diversification of your potential revenue. All of this is well within reach, and much easier than you may think.

The NON-O/O investment space is a 100 billion dollar industry that has come full circle since the last market downturn. Over the last decade private lending has been growing, and the comeback of property investors is at an all-time high.

Here’s what it takes to do these types of loans and a good private lender will handle these things for your Brokerage…

• • • • • • •

Review and process loan applications Document collection Facilitate Appraisal Coordinate Title & Escrow Complete underwriting Facilitate Funding Pay you

Traditional Realtors and Mortgage Brokers have the misconception they need an NMLS license to be a lender in this product space. The main point in dealing with a private lender is while they primarily fund SFR’s, these loans are governed under commercial guidelines.

Thus we are not governed under RESPA, TRID or TIlLA. These loans are funded only into business entities allowing 7-10 business day closings and can pay anyone under a Brokerage license a referral fee or commission on the HUD at closing.

There are two avenues a Brokerage launching this type of product to Real Estate professionals can expect to see. You can be a Correspondent Partner (the lender would fund in your name)

http://triumph.capital/brokers

or an Origination Partner (the client would see the lender’s name on the HUD). Most deals are funded under a single set of product guidelines allowing training, underwriting and servicing to be easily understood.

CORRESPONDENT PARTNER (CP): You look and feel like the lender, a complete white-label product.

ORIGINATION PARTNER (OP): Traditional Broker + lender relationship, lender shows on HUD. A full concierge service for Broker partners handling everything from A-Z is an entirely new model for private lending and Mortgage Brokers / Real Estate professionals. Working with a direct lender enables Mortgage Brokers to keep the lion’s share of the profit and have the potential to earn from the yield spread as well, all while monetizing on much more frequent lending transactions, instead of the normal 5-7 year customer lifecycle.

There many private lenders chasing this strategy and it’s safe to be wary of who to work with.

While choosing a partner, look for someone who understands the business and has a strong reputation for closing transactions. You’ll also need support with marketing materials. Having the right documents and product tear sheets (one-pagers) for conversations, trade shows, etc. is helpful in positioning the opportunity with your existing book of referral business from Realtors.

For more information call

877-450-9741

ROB JENNINGS robert@triumph.capital

GEORGE O. FLINT goflint@triumph.capital

CEO Geraci LLP ANTHONY GERACI Anthony@Originate.Report

Letter

from the

Editor

Vice President Geraci Media RUBY KEYS Ruby@Originate.Report Editorial Director MAX BERGER Max@Originate.Report Art Director LYNDA HIGHT L.Hight@Geracillp.com CONTRIBUTORS Max Berger • Edward Brown Jonathan Bursey • Charles Peckman Ruby Keys • Romney Navarro

FOUNDING UNDERWRITERS

MARK HANF President, Pacific Private Money

ORIGINATE WEBSITE www.originate.report GERACI LAW FIRM www.geracilawfirm.com MEDIA WEBSITE www.geracimediagroup.com CONFERENCE WEBSITE www.geracicon.com

Welcome to our August Edition of Originate Report!

“We must all suffer one of two things: the pain of discipline or the pain of regret or disappointment.”

-Jim Rohn What do this month’s featured industry professionals have in common? They understand the importance of discipline. You can have big dreams, ambition and talent, but without hard work and discipline you will not achieve your goals. Read on to discover the role that discipline has played in the life of Rich Katz, and how it helped him create Rodeo Lending, one of the nation’s leading private money lenders. In addition, do not miss this month’s Industry Spotlight Noelle Wheeler from Nationwide Mortgage – the story of her personal and professional success will inspire you.

August is also an important month for private lenders – You’ll have a chance to attend one of the premiere capital raising and networking events in the industry – Geraci Media’s flagship event, the 3rd Annual Captivate Conference! Connecting lenders and investors, Captivate focuses on the real need in the non-conventional lending industry – Capital. Join us in Las Vegas on August 21-23, at the Cosmopolitan Hotel. Visit https://geracicon.com if you are interested in attending.

To Growth and Change,

Max

Max Berger Originate Report Editorial Director www.originate.report 5

PROFILE

RICH KATZ RODEO LENDING

By Charles Peckman, Originate Report

W

Originate Report: How did you become acclimated with the hard money and real estate space?

Rich Katz: I was living in New York, and I sold a business that

ith a black belt in karate

lenders. Katz, who has served as

manufactured

and experience running

the company’s president since its

cartridges, and I moved to California

a

inkjet

inception, said Rodeo’s approach to

and was looking for new business

cartridge business, Rich Katz, the

private money lending is designed

ventures. I was always intimately

president of Rodeo Lending, knows

to maximize investment returns on

involved

toner

and

a thing or two about the discipline required to thrive in the private money space.

Rodeo,

which

combines industry expertise with the interests of investors and borrowers.

was

founded

business

entrepreneurs

extensive

experience

conventional

real estate loans, and his strategy

by with

in

residential

the and

Katz sat down with Originate Report to talk about his beginnings in the private money space, as well as the challenges associated with growing

toner

with

and

moving

inkjet

business,

and as my company grew in New York I realized I loved the real estate

process. When I came [to

California,] I really didn’t know what to do – I was looking for a business

to

buy,

and

my

wife

suggested that I look into real estate because it interested me. I

commercial loan space, is one of

his company in the aftermath of the

received

the nation’s leading private money

2008 financial crisis.

estate license, but I knew that

6 Originate Report | July 2019

my

California

real

I didn’t want to sell homes – but with

that said, I was always very good

and I kept building those assets, and

But we still plowed ahead, and this

with the finance side, so I started

eventually I met up with my business

is when I believe the private money

doing mortgages for a company

partner Gregg Bernstein. We worked

business gained even more traction

called United Pacific Mortgage. I was

on deals together sporadically, but

because the banks were not servicing

then in 2011 we formally established

the loans that our borrowers needed.

very persistent, and one of the leads I got was from a high-ranking officer at Vandenburg Air Force base. This was back in 2003, and when I had a

Rodeo Lending, and haven’t looked OR: Well I hate to interrupt, but I

back ever since.

was very curious about that – did

successful experience with him, he

OR: During this time, what were

you find that as the banks did not

recommended me to everyone in his

some

and

have the ability or wherewithal to

unit – so I did around 40 mortgages

triumphs – of starting Rodeo with

service those loans, that the private

at the Air Force base, including a

Gregg Bernstein?

money sector grew quickly?

of

the

challenges

–

hard money loan. I realized I liked

RK:

For

sure,

and

there

was

from

our

that process a lot – not having to

RK:

deal with the banks, and creating

together, it was 2007-2008, so the

substantial

more personal relationships with

world was coming to an end at that

investors because they could get

borrowers. This process spurred me

point. The real estate market was not

bank-quality loans that the banks

to do more of those types of loans.

doing well, and there were several

just couldn’t do at that time. So

challenges

that.

during that time, even though it was

I posted an ad in the Wall Street

We were fairly conservative when

challenging, it opened up the private

Journal, and all it said was “hard

we were underwriting our loans,

lending industry even more and we

money, soft terms,” and had my

and we really didn’t have any loans

gained credibility because we were

name and phone number. One of

where people lost money during that

doing things that the banks could

the loans I got from that little ad

period. With that said, though, it was

have normally done, but just weren’t

was a $28.6 million loan in Utah,

a challenging time, and none of us

during that time; and to a large

so I brokered that loan and started

knew if the market was going to go

extent, we have never come back

loving hard money even more – I

down further, so we had to be very

to the point where the banks are

started building my investor base,

conservative in our underwriting.

comfortable executing those loans.

When

we

started

associated

working

with

interest

It’s interesting to me that they don’t want those loans.

OR: I can imagine that gaining credibility in the private money space during this time was difficult – how did Rodeo overcome that obstacle?

RK: I think one of the key aspects of our business is we truly do what we say we are going to do. Today, we don’t rely on individual investors, we have a fund called the Westridge lending fund, and through that fund, we have money that we can deploy.

Richard Katz (left) and Gregg Bernstein (right), Rodeo Lending

Rich Katz: Continues on pg. 8

www.originate.report 7

Rich Katz: Continued from pg. 7

I think in our industry, people take on loan projects and then have to go out and raise the money. We always have the money, and then go out and do the loan. As our business grew, we started to gain a reputation around the country as reliable, credible lenders. Often in our industry, unfortunately, socalled professionals quote one thing and then they “bait-and-switch.” We don’t do that, and we make sure that we are by our borrowers side until a loan’s conclusion.

business ventures, including the toner and inkjet company, helped you in your pursuit of growing Rodeo Lending?

I

have

always

accurately. We have implemented

vest manufacturing company, and I

processes so we can do that, and that

started a business that made shirts

sort of thought process is definitely

that made the bullet-proof vests

reminiscent of my “toner cartridge

more comfortable. So I had these

days,” and Gregg and I have worked

businesses in college, and I have

diligently to make sure our business

always carried an entrepreneurial

runs smoothly, as cliché as that

mindset,

sounds.

and

having

the

toner

business as well taught me so much.

I was fairly young when I grew that business along with a friend of mine from college, and throughout that journey I learned so much about systems

and

processes

because

we really had to have our systems down to a science – if we didn’t

OR: Did you find that your previous

RK:

had a summer job at a bullet-proof

carried

an

entrepreneurial mindset. I went to Babson College, a small business school in Massachusetts, and I was a triple major in entrepreneurship, marketing, and economics. Even in school I had a business, I sold t-shirts to 50 different colleges around the country, and later on I

Gregg Bernstein, Rodeo Lending

8 Originate Report | July 2019

“As our business grew, we started to gain a reputation around the country as reliable, credible lenders.”

build a cartridge correctly it might leak, and you have to keep in mind that during this time, paper played

OR:

a crucial role in many businesses.

processes at Rodeo, do you ever find

If we screwed up, then their work

it challenging to strike a balance

product was screwed up as well;

between servicing loans quickly and

and to a certain extent, I think it’s

accurately?

While

implementing

these

the same here with Rodeo. We have implemented processes that bring

RK: I think we strike that balance by

an element of speed into the private

following the same steps for every

money space, and that is one of the

loan – even though every loan is

reasons many of our clients choose

slightly different and there are some

us. In order to have speed, you have

nuances there, we do background

to do things right – you don’t want to

checks on our borrowers and we

have to do a bad loan, so we have to

see every property we lend on.

underwrite those loans quickly and

The bottom line is the value of the

Richard Katz, Rodeo Lending

property is of the utmost importance

those kids who

to us because even though we don’t

bounced

want to take back a property, that

the walls, and I

is our final recourse in the event

certainly wasn’t

that a loan goes bad. We want to

disciplined, but

make sure that in the unlikely case

karate

we’re taking back a property, the

me

value attached to that property

and how the only

is accurate; we painstakingly but

way to succeed

quickly go through that process.

is

My partner or I go and see every

hard

property, and we make sure that we

Succeeding

have a feel not only for the property

karate,

and the appraisal, but also the

you’re

in

a

neighborhood and surrounding area,

tournament

or

and any factors that may impact the

a fight, requires

future value of any given structure.

so

When we finally put a value on a

concentration –

property, we truly feel as though

a concentration

we have the best understanding

that

of what its value is, and obviously

always

we’re not 100 percent accurate –

but once I did, I

anyone who says they are is fooling

became

hyper-

themselves and their clients – but we

vigilant

and

are incredibly accurate, and I think

took that discipline to other areas

– but buying leads isn’t enough; you

that is so important in our field. We

in my life. I think the hard work and

can buy leads all day long but you

also trust our in-house people; they

learning never to give up taught me

actually have to call them, follow-

know what they’re doing, and they

to fight for what I need. Even though

through, and you have to build

follow guidelines of what should be

I don’t think “fight” is necessarily

relationships with clients and they

expected for a loan. We’ve done this

the right word to describe business,

want to give you repeat business.

so many times now, and we know

it is competitive, and you have to

We’ve invocated that mindset with

exactly what to look for.

learn how to be strong, and fight for

our staff, so they know that they

what you need and what you want –

need to follow up and create those

OR: One of the things that interested

and of course, what will make your

in-depth relationships with clients.

me about your background is the fact

company profitable.

off

taught discipline

through work. in

when

much

I

didn’t have;

OR: How do you see Rodeo growing

that you have a black belt in karate – can you talk about some of the

To translate and compare how my

in the future? What are some of the

similarities in the discipline required

karate

external factors that will bolster this

for karate and the discipline required

my business experience, there are

in the hard money space?

parallels there. If I didn’t take karate

experience

has

deepened

growth?

as a kid, I don’t think I would have

RK: We talk about the future of our

RK: That’s an interesting question,

received the discipline that I have

company all the time – after all, our

and I have never been asked that.

today. How do you grow a business?

world is changing very fast. When

I started doing karate as a kid and

With persistence. When I first

I was seven years old. I was one of

started, I told you I was buying leads

Rich Katz: Continues on pg. 10

www.originate.report 9

people purchase empty stores and

On the one hand there is the

transform them into something new,

application

and we lend them the money to do

solutions, but then like any other

that. This is part of what I love about

field there is the application of

real estate; the creative people in our

technology and how its evolution

field are really changing the face of

changes the way we do business, and

how we view the space. We have one

we’re investing a lot in technology

client, for example, who takes these

to make the borrower and investor

abandoned storefronts and splits

experience with us an up-to-date,

them up into multi-tenant retail and

easy experience that makes their

creates value from an empty, non-

life better. We’re also looking at how

productive space and within a year

this business has become much more

makes it a productive building that

sophisticated, not only because of

thrives as a retail environment. You

technology but also the type of money

and how technology is changing

look at transformations like that and

that flows into the private sphere

our field, you can draw parallels

think to yourself, “wow, that is why

as well. We’re looking at what our

between all of the businesses that

I’m in this business. We are helping

competitors are doing and updating

have disappeared like Blockbuster

create solutions for our clients who

our offerings accordingly to be

and big-block retailers, and what we

need sophisticated thought about

congruent with the market, and even

have to do as real estate professionals

lending.” Banks may look at the

though it’s challenging that is what

is adapt, otherwise we will become

thought of transforming an empty

business is all about. I believe that

obsolete.

building

retail

if you stay stagnant or complacent,

and label the idea as foolish, but

you die – so we’re always looking

In the case of big-box retailers,

sometimes the best ideas come from

towards the future.

we’ve done a lot of business where

outside the box thinking.

Rich Katz: Continued from pg. 9

you’re in it doing business every day you may not see all of the changes, but when you go up to the 1,000 foot level, you say “oh my God, in college I had a Mac computer that didn’t even have a hard drive, and I didn’t even have e-mail.” And now you look at the world, how much it has changed, and how we have access to so much information at our fingertips. Life is changing fast, and my point is that our industry is changing quickly as well – from just looking at real estate

into

multi-tenant

of

those

creative

CONTACT: For more information on Rodeo Lending, visit https://rodeolending.com/

INDUSTRY JOB WATCH

LOOK WH

O ’S

HIRING!

Looking to fill a posit Originate ion? Adve Report’s rtise it Industry of thousa Jobs to g here in nds of qu et it in fro alified ca nt ndidates Contact . us at (94 9) 629-3 961.

Money360, Inc., Ladera Ranch, CA Commercial Real Estate Loan Underwriter must be able to evaluate loan opportunities, including, the real estate collateral securing the proposed loan, the surrounding market and demographic area and the adequacy of the loan structure of the transaction and/or relationship.

Primary duties include the underwriting of commercial real estate and bridge loans, reviewing loan documents, spreading financial statements, evaluating borrow/ guarantor financial support and management, and developing rationale for pricing decisions. The role will be responsible for all aspects of a proposed loan from the time the borrower executes the term sheet through closing.

Interested parties should contact Paul Cleary.

CONTACT: paulcleary@money360.com | www.money360.com

10 Originate Report | July 2019

PRESS RELEASE

GERACI MEDIA ORIGINATE REPORT MAGAZINE CELEBRATES 2-YEAR ANNIVERSARY IRVINE, Calif., July 09, 2019- Two years ago, Geraci released the inaugural edition of its industry magazine, Originate Report, targeted primarily at mortgage loan originators. This month, Originate Report commemorates its 24th edition, and thereby its 2-year anniversary. To mark the occasion, the magazine has been upgraded with a new look and fresh content. With brand-new content writers, new featured columns, and an expanded array of relevant topics for lenders, the Geraci Media team is working hard to keep readers as engaged as ever. The team wishes to express gratitude to their readers and advertisers for making Originate Report a huge success.

The magazine has also transitioned from print to digital as its primary medium, creating opportunities for more interactive content and broadening its audience. It will remain easily accessible to its original readership of loan originators, lenders, investors, and other professionals in the non-conventional lending industry, and physical copies of the magazine will still be found at all Geraci events.

Commenting on his experience as a contributor to the magazine, Romney Navarro from the executive team at Streamline Funding stated, “Oftentimes in our relatively niche business of non-conventional lending, you find it difficult to get your message out to the right audience. This is especially frustrating when your specific message can help somebody grow their business responsibly. I was thrilled to provide content to the magazine; first, because the people at Geraci are the authorities in spotting talent in our space and I felt honored to share my story with them. Secondly, because unlike others who have tried in the past, they have created a respected and well-circulated platform to share that story.�

Originate Report magazine is distributed 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 each month 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 both advertisements and the lender directory.

Please visit https://originate.report/ to gain access to all previous editions of Originate Report. If you are interested in contributing content or advertising, please contact m.berger@geracillp.com to receive updated media and editorial kits.

Max Berger | 949.379.2600 | m.berger@geracillp.com www.originate.report 11

SPOTLIGHT SPOTLIGHT

INDUSTRY SPOTLIGHT Noelle Wheeler

President, Nationwide Mortgage

12 Originate Report | July 2019

for investors.

shore and realize you are farther

In her spare time she enjoys playing

back than when you started. This

the piano, yoga, and snowboarding.

is the challenge with technology.

From when I personally made our

Q: What does your typical day

first website with HTML coding, and

look like and how do you make it

spent months customized our CRM,

productive?

to outsourcing, and incorporating

I am a firm believer in the idea,

the best talent and technology… we

“Strong

are always trying to paddle faster

body,

strong

mind.”

Therefore, in order to maximize my

than the stream.

exercise routine, I have a few rules that I try to live by: Noelle Wheeler, Nationwide Mortgage

A

Institute

in Toronto where she obtained a

Bachelor

of

Technology

in

Architectural Science.

In 1990 she moved to Southern California and got her start in the mortgage industry. obtained

her

License

and

evolved from Day 1 to Today?

my workout clothes.

The vision for the company on Day

I am not allowed to sit at my

desk.

attended Ryerson Polytechnic

1. When I get up, I get dressed in 2.

Canadian native, Noelle

Because if I do, even for a

moment, I may get too engrossed in my day and decide not exercise.

3. Run 2 miles, or walk part of it if I am feeling lazy. Or take a yoga class.

4. Have my butt in my chair, ready

Q: How have you seen Nationwide

in

started

Mortgage grow and expand in the

Nationwide Mortgage.

last few years?

Since then she has been operating

The last year we haven’t expanded,

the company with the assistance

we’ve actually contracted. We’ve ut

of

with

our expenses, removed or replaced

providing

unproductive team players, and

Since

its

now we have seen one of our

inception Nationwide has funded

biggest year-over-year bottom line

over $4 billion in mortgage loans.

increases. Sometimes you must go

Historically

smaller and smarter to go bigger.

aligned

objectives

exceptional

of

service.

the

company

has

focused on conventional, FHA, and VA loans.

After years of running

Q: What has been one of the

her company Noelle realized there

biggest challenges you’ve faced in

was a need to provide funding to

your career?

borrowers that were outside of

Evolving, and staying one step

the standard conventional lending

ahead of the technology pack. Have

guidelines.

At that point Noelle

you ever been in a canoe paddling

expanded Nationwide to add a

upstream, and felt like you were

Private

that

going at an amazing pace? So smug

focuses primarily on funding loans

and confident, only to look at the

Lending

division

their own leads. That formula worked well for years as this model was based on the premise that most people are either good at sales or operations. I felt my skills tended towards operations more than sales.

myself.

Broker

people

for loan officers that would generate

But over time I’ve had to evolve to

Mortgage

exceptional

1 was to be the operational support

to work by 9 AM!

In 1994 she 1997

Q: How has your company vision

learn marketing and generate leads This has given us more

control over revenue. Also, when I started I was focused on consumer loans.

But over the past 5 years

we have developed our hard money mortgage offering. Now we are a one-stop shop for consumer and hard money loans.

Q: What advice would you give your younger self?

I have two adult daughters, and if you see and hear them you would say they are younger versions of myself. So the advice I have often given them is to avoid “Analysis Paralysis”. When you are trying to make a career or business decision, trust your gut, and take the leap of faith. And the true success will Noelle Wheeler: Continues on pg. 14

www.originate.report 13

myself, what if she had said, “no!”.

Noelle Wheeler: Continued from pg. 13

only come after years of grit and effort.

But if I am honest with myself, I realize that my daughters aren’t me. And I must let them make their own decisions and mistakes.

But the advice I would give my

If I have a kid and want to go to

recommend

their ballet recital, I wouldn’t want

professionals should read, and

to have to ask anyone’s permission

why?

to go.

Of course, like any other

In work, as in life in general,

self-employed person, the reality is

there are so many things that pull

that I work 10 hours a day to avoid

and push us in so many different

working 8 hours a day for someone else, but it’s worth it to me.

long bumpy journey, so buckle up, and enjoy the ride.

people don’t know about you?

Since I moved to the US in 1990 I have sponsored a female child from India, non-stop, every month Children

International.

Granted these girls keep growing up and moving on, and then they assign me a new one. But looking back, I guess the motivation for this may have been because my Dad was from India. I could have been

Honestly, I think Enrique, the selfemployed custodian that cleans our

decide where to put your energy?

The one book I would recommend to other industry professionals is: Lao Tzu’s Tao Te Ching, or Book of

okay and if he had enough business

the Way, by Stephen Mitchell. It is

after I ran out of odd jobs to give

referred to as:

him, he said “ I am happy in my heart.” It may sound cliché, but it’s

“the classic manual on the art

not about the size of your home,

of living”

or bank account.

imparts balance and perspective,

It’s about what

makes you happy in your heart, and that is how I would define success.

Q: What is a recent trend in the private

lending

industry

that

excites you?

possibly not had much opportunity

The trend that has excited me most

to be educated.

Even my mother

in the private lending industry

who was from Switzerland didn’t

is woman rising; in prominence,

get

power positions and numbers.

educated.

directions. How do you make those

said it best. When asked if he was

born in a third world country and

much

industry

building and does odd jobs for us,

Q: What is something that most

through

other

daily decisions, and how do you

younger self would be the same.

Trust your gut, and dive in. It’s a

Q: What is one book that you’d

opportunity

to

be

What would it have

meant to me if one person reached

A couple decades back you wouldn’t

out and helped me? For the cost of

have seen a man pushing a stroller

a coffee a day I can be that person.

or carrying a baby on his chest

Q: How do you define success?

About 25 years ago I was working for Coast Federal Bank as an underwriter in Woodland Hills.

I remember overhearing a coworker asking if she could take time off to see her daughter’s ballet recital. The manager at the time, Janice, said, “yes”. And I thought to

14 Originate Report | July 2019

in a carrier.

Society would have

ridiculed him. Now that men feel more encouraged to be involved

.. It “gives advice that

“This book is about wisdom in action. It teaches how to work for the good with the effortless skill that comes from being in accord with …the basic principle of the universe” It may sound hokey when the light that guides your decisions comes from basic principles of the universe.

It’s not based on any

religions. It’s an easy read of 80 pages of quotes, and it was a game changer for me.

What is your favorite quote?

“A leader is best when people barely know (s)he exists, of a good leader,

in their babies’ lives it frees up

who talks little, when (her)his work

more women to spend the time and

is done, (her)his aim fulfilled, they

energy they want in their career.

will say, “We did this ourselves.”

That’s good for everyone.

― Lao Tzu, Tao Te Ching

CONTACT: noelle@nw-mortgage.com | nw-mortgage.com

2250 N 28th Pl Phoenix, AZ

VISIT REFCORP FINANCIAL

Stop by our booth at the 2019 Captivate Conference to learn about these upcoming stunning projects being developed by Artisan Builders.

INVESTMENT OPPORTUNITIES

Artisan Real Estate Fund Assisted Living Manufactured Homes New Build & Value Add Rehab for Single Family & Multi-Unit 3616 N. 12th St Phoenix, AZ

7407 E Minnezona Scottsdale, AZ

CAN’T MAKE IT TO CAPTIVATE?

Contact REFCORP Financial at InvestorServices@refcorpaz.com to schedule a private Market Cycles update through our online portal or attend a presentation at our Arizona headquarters! reforpfinancial.com investorservices@refcorpaz.com 480.477.7730 www.originate.report 15

FEATURE

Know the Essentials on Gathering Qualified Leads

to move onto the next sales stage.

By Ruby Keys, Geraci Media

qualified prospect. In the age of the

B

efore the age of technology,

their smartphone or computer and

a salesperson would travel

browse for what they want, read

about their territory to

reviews, and decide. This stage of

meet personally with individuals,

engagement is regarded as a warm

to get a “feel” on their sales leads.

lead; but how do you best identify

As

is

today,

when

they

came

across a person ready to buy, it was considered a “hot” lead. By comparison, a “warm” prospect is a person merely browsing for products or services, and a “cold” lead is someone who may not even know what you’re selling.

Typically, anyone who is in the “buying stage,” meaning they are prepared or preparing to purchase a product or service, is considered a Internet, this could mean following your

social

media

account,

subscribing to a newsletter, or being a frequent visitor to your website.

that prospect and convert it into a

Each business should have a unique

sale?

process for identifying what defines a lead for them. In differentiating

What’s critical to understand is

the types of leads you collect,

how to capture that lead.

you will be in a better position to determine who is worth pursuing,

Many

companies

turned

to

today

automated

have

and who is not.

software

that helps identify and analyze a

To define the types of leads your

prospect’s

behavior

business pursues, first sit down

and determine what stage they are

with your team to discuss your

in the lead qualification process.

target market. Next, identify who

Technology helps, but you still need

is in your current database and

some key components in place to

review their buying habits. It would

take advantage of the process. To

be best if you also considered how

successfully qualify leads, you must

your team determines when a

have three critical fundamentals in

lead advances from a warm to hot

place.

prospect.

personal sales approach has nearly

A CLEAR DEFINITION OF “LEAD”

ESTABLISH A SCORING SYSTEM

disappeared. Today, when shoppers

Defining what a lead means to you

A lead scoring system will also

are considering a service or product,

is a crucial step in determining

help you better assign values to

they immediately go online with

whether they are qualified enough

prospects based on actions they

Qualified leads generally received more attention. Lunches, rounds of golf, or maybe a happy hour together would give the salesperson a chance to address their prospects needs and expectations to close the deal. On the other hand, warm leads maybe got a phone call as a follow-up.

engagement

With the Internet, much of that

16 Originate Report | July 2019

take, their buying behaviors, or

Lead buying stage – Timing is

response rates for short or long

even their browsing habits. By

everything.

emails

doing this, you will have a clearer

stage your prospect is in and if it’s

• Check click-through rates to see

vision of which leads are ready for

the right time to sell, will be dictated

how prospects respond to varying

nurturing.

by the information you gather.

content

Start by sending them information

• Change the designs of your email

Here are the four categories for a

on

your

lead scoring system:

and

Understanding

products

evaluating

or

their

what

services response.

By analyzing their response and Lead fit – This category includes

assessing their interest, you’ll get

collecting demographic information

a better idea of what stage they

on your prospects, such as title,

reside within the buying process.

role,

and

location;

collecting TESTING AND OPTIMIZATION

industry, company size, and brand,

Now that you have a clear definition

and collecting BANT information

of your leads and have established

on company purchases, such as

a scoring system, it’s time to test

budget, authority, timeframe, and

and optimize. Testing should be

inventory requirements. Much of

a

this information can be captured

your marketing plan to see what

through a simple registration form

techniques are working and then

on your website or a survey.

optimize

activity

your

of

website

checking

to

take

advantage of those systems.

Lead interest – By following your prospects’ engagement with your website and analyzing what they browse and how interested they are in your products and services; you can gauge their interest level to decide how much attention they need to turn them from a warm lead to a hot lead.

Lead

behavior

–

A

prospects

and

gauge

customer

response • Change the frequency of your sends and keep track of audience response Through testing and optimization, you can coordinate between sales

info on their business, such as

regular

messages

You want to ultimately develop a system that delivers an engaging customer experience and allows you to nurture leads and drive sales.

So, the best bet is to test everything

and

marketing

to

determine

which approach results in the best conversion strategy.

As you work towards utilizing these three techniques to turn warm leads into sales conversions, keep in mind that with the Internet, marketing is always evolving and as such, you must always stay on your toes.

By using proven strategies and keeping an open mind to new and emerging approaches, such as AI-

to ensure it aligns with those goals.

driven marketing platforms, you

Some of the things you can do to

efforts will result in a steady stream

optimize your systems are:

of qualified leads converting to

can ensure that your marketing

sales. If you are a private lender • Assess how different subject lines

looking to enhance your marketing,

result in a different response

reach out to Geraci Media Group

Signing up for a newsletter or

• Check to see the difference in

today.

catalog is an early stage prospect

ABOUT THE AUTHOR: Ruby Keys is the Vice President of Geraci Media. She joined Geraci LLP in 2015 as the Marketing Coordinator for Geraci Law Firm. As she enters her 4th year with Geraci, she is now the Vice President of Geraci Media, a full service marketing agency, which caters to the Non-Conventional Lending space.

Geraci Media was founded in 2016 and began as an event line.

Ruby has helped grow and manage Geraci Media to where they now host 5 conferences a year, produce a monthly magazine for Loan Originators, and offer marketing services for lenders nationwide. CONTACT: r.keys@geracillp.com

behavior online often sheds light on their immediate buying stage.

but browsing a pricing guide or product

listing

can

indicate

a

prospect that is further along in the lead stage. By taking advantage of this information, you can nurture a prospect along, until the sale occurs.

www.originate.report 17

FEATURE

Storage Baby!

JUST DO IT

build an asset that will be sellable, but also domain level experience in regards to permitting, zoning, and the most precious asset - honest and

By Dan Kryzanowski, Rocket Dollar

N

feasibility in the industry and how to

knowledgeable frontline employees

ike became famous in the

of Air Jordans, “big money” (REITs

1980s by telling Americans

included) are now paying comically

to “Just Do It”. This ranged

low cap rates for their first taste of

to manage the property.

Kyle Bainter, Co-Founder and CEO

storage.

of Callbox Storage, a full-service

Spike Lee, to Joe and Jane America

Getting In

delivery, reiterates that it is more

looking

“Partnering is the way to go,” shares

difficult to get zoning due to the fact

and apparel above and beyond the

Scott

CallPotential.

that cities would rather have other

traditional wares of that era.

Worden breaks it down further to

uses for real estate than storage (i.e.

either acquire or build, implying a

retail, multifamily, etc.)

from multi-sport All-Stars and mega

storage service with pick up and

personalities, such as Bo Jackson and for

value-add

sneakers

Worden

of

Now, while self-storage may never be

preference on acquisition, as the (not

the theme of a Super Bowl halftime

so) secret sauce to acquisition is to

Scott

commercial, it has recently received

find an asset that is underperforming

Storage, sees the benefit of first

rockstar status across the family

and

buying,

office, private equity and high net

better customer service. Whereas

footage, summing in a value-add

worth channels. And just like when

building requires partnering with

play for the existing units and new

you paid $100 for your first pair

an insider that not only knows

development onsite.

18 Originate Report | July 2019

incorporate

technology

for

Mednick, then

CEO

adding

at on

Square square

Show Me The Money

Millichap, first shares that it is “easy

are stabilized to the tune of $25M+

Jim Mooney, VP at Freedom Storage

to market”, further qualifying that

property value or raised at least $7M.

Management,

the

if you hire a reputable management

challenges of funding. “I just met

firm and particularly an experienced

Being A Smooth Operator

with a guy in Ohio who was trying to

marketer, such as Alvino, “you’ll fill

Outside of the universal tenants to

get a bank loan. The bank manager

up in a heartbeat.’’ Bainter’s data

hire the right people and provide

looked at him awkwardly. Once he

shows that the REITs are spending

said he is coming with a third party

more on digital efforts lately as

operator, the bank changed on a

customer habits have changed. Many

dime.”

people simply search for what they

touches

on

need now rather than just drive by Mooney also verified that there is a lot of money - particularly Wall Street money - chasing storage, so you only want to be in certain MSAs or smaller markets. Adam Kensky, Co-Founder and Owner of Triad Investments, echos Mooney, adding to cautiously choose your location and adhere to a reasonable timeline.

For example, you cannot become the biggest player in Greensboro in Year 1, but you can have a few deals under your belt in 12 months.

Christina Alvino, Founder & CEO of FineView Marketing, claims that fundraising get easier over time, as long as you have the proper reputation.

An

owner/operator

needs to be able to speak to the asset and returns in an educated manner to make them believe what (they) are investing in. In addition, “pay it forward” both early and often on as you develop and work collaboratively with your network. Alvino points to John Manes, CEO of Pinnacle Storage Properties, who spends hundreds of hours each year educating, learning, and mentoring folks across the industry.

Go And Get ‘Em Dave Knobler, Director at Marcus &

a self-storage facility and make the decision that way.

Alvino,

in

lieu

of

sharing

her

differentiator (for newcomers) is to first have an operational background in real estate, and to share your different perspectives that could value

on

a

particular

property or geography. She does share a tale of caution to first time operators, where a gentleman was charged over $2500 to build out his website, with the final deliverable providing ranks on only one keyword and zero traffic to his website.

These

substandard

unfortunately

customer

service,

Mooney and Worden, share three lesser known tips to becoming a smooth operator. First, security.

Pending your location, the optics of having a security guard or just a gigantic camera could deter the troublemakers. Secondly, find out

secret sauce, responds that the big

provide

outstanding

results

common

what they do not offer. And by “they”, not just your competitors but more so other residences and commercial properties within 3-5 miles of your property. For example, a local HOA may not permit RVs, so they park at your facility. Finally, smile! Simply smiling for a prospect could quietly nudge them into buying an extra roll of bubble tape or high margin boxes.

Following

these

tips

will

not

only differentiate you from your competition, but also raise the value of your property.

are

Just Do It

with

Everybody wants to be the “cool kid”

consultants and service providers

and claim to have the newest edition

who do not yet have experience

- with this as a backdrop, I say Just

in storage. Thus, Worden simply

Do It, whether you strive to own a

directs folks to “hire the experts”,

dozen storage facilities in the next

then consider bringing marketing

three years, as a JV partner, or small

and operations in house once you

investor in a syndication.

ABOUT THE AUTHOR: Dan serves as EVP at Rocket Dollar and Capital Partner for Pinnacle Storage Properties. Dan laced up a pair of Nike SkyForce en route to an undefeated 46-0 state championship in the 1990s. More recently, Dan worked around the clock for 18-months to master 21st century marketing and shadow the top operators across the world of self-storage. Visit with Dan at Captivate in Las Vegas.

CONTACT: dan@rocketdollar.com

www.originate.report 19

DISCOVER THE

Symbol of Excellence

FOR PRIVATE LENDING

Members of the American Association of Private Lenders are the new trend-setters in the private lending industry. From their voluntary adherence to a Code of Ethics to their knowledge of the private lending process, they are the gold standard for the profession.

Activate your membership with the American Association of Private Lenders to give your business the professional advantage and career boost it needs.

You will: • Join a viable network of industry experts.

• Get immediate recognition as an industry professional.

• Have a voice in creating the standards for the industry.

• Have access to exceptional professional development opportunities.

• Get added marketing support and opportunities to enhance your business.

It’s time to take your business to the next level.

JOIN AAPL TODAY!

AAPLONLINE.COM  (913) 888-1250

20 Originate Report | July 2019

Knowing The Path Vs. Walking The Path WHY YOU SHOULD CARE ABOUT DATA SECURITY

in the exposure of over 900 million documents) • Credit reporting

agencies

on their mobile phone

(Equifax’s

affected

trying to close several deals

• Your company has a 1 in 3 chance

almost 600 million people)

at once.

of getting hacked

By Ian J. Group, Esq., Prodeal360

Y

FEATURE

ou’re

crushed

at

work

You go to your

local cafe to get some work done For the last few years, IBM Security

coffee. With your computer screen

has released an annual report in

open, unbeknownst to you, someone

conjunction

uses their cell phone to take a picture

Institute

of your screen. Closing day comes

associated with a data breach. The

and you get an email from your

average cost of a data breach in

borrower with wire instructions

2019 is $3.92 million.

for loan proceeds.

regulated industries, like financial

with

the

outlining

Ponemon the

costs

In highly

wire funds in accordance with your

services,

borrower’s instructions.

Borrower

those costs associated with a data

calls asking where are the funds...

breach occurred after the first year

you can imagine what happens next.

following a breach.

roughly

one

third

of

The largest

portion of these costs is attributed If you want to end the story now,

to lost business. Negative publicity

go ahead and stop reading.

You

and federal or state laws mandating

know hackers are out there trying to

disclosure and reporting after a

gobble up your information and you

breach can cause financial ruin.

can continue to casually care about it.

We know from events over the last decade that the financial services

But if you want to take the red pill

industry is a target for hackers. Ask

and see how deep the rabbit hole

around and you will find recounts of

really goes, follow me...

a firm that has dealt with spoofed wire instructions. Or just look at the

While an example like the above

news to see who has been affected:

might seem extreme and implausible, think again. This is unequivocally

• Banks (JPMorgan’s 2014 breach

the reality of the financial services

affecting over 100 million customers)

industry today.

• Law firms (Cyber attack against

Let’s review some

breach

Yes, the number of examples are

and quickly leave your table to grab

You close and

2017

startling facts:

DLA Piper crippling all phones and

• Fewer than 30% of businesses are

emails)

using data encryption

• Title companies (First American’s

• 52% of people don’t use passcodes

2019 security oversight resulting

growing by the day. But what is most troublesome is that the list is filled with companies that have teams and multi-million dollar budgets dedicated to information security.

If you do not think you have been or will be exposed by a data breach, think again. Experts in the industry will tell you that being hacked is not a question of “if” but rather a matter of “when.”

While you might think

your company is taking necessary precautions, you also need to be mindful of your service providers and the security they use to protect the information you give them. Just look at Retrieval-Masters Creditors Bureau Inc., a collection agency formerly used by Quest Diagnostics.

A data breach at Retrieval-Masters exposed personal information of Quests’

clientele

resulting

in

a

large number of customers initially reporting fraudulent credit card charges. The financial impact of this breach recently caused the collection agency to file for bankruptcy.

So whether you run a small shop or work for a large corporation, each Data Security: Continues on pg. 22

www.originate.report 21

Data Security: Continued from pg. 21

individual can do their part today to provide an extra layer of security around their personal and company information: 1. RECOGNIZE BUSINESS EMAIL COMPROMISE The

FBI’s

2017

internet

crimes

report states that businesses lost approximately $1.4 billion as a result of internet crimes like business email compromise, a scam targeting businesses

regularly

performing

wire transfer payments. Do you part to protect against BEC by moving conversations out of email and calling contacts to verify payment and wire information. Most title

an immediate reply. Hackers will use

passwords every 90 days and, when

this tactic to pressure a response.

possible, use single sign on with

• Images that aren’t quite right.

platforms like Google or Linkedin to

If the images or layout of an email

minimize your attack surface.

seem a bit off, it’s likely an attempt to fool you.

4. PROTECT YOUR DEVICES

• Odd salutations. Look out for

Employ a clean desk policy at work

red flags such as, “Valued Customer”

so computers and papers are not

or “Important Client.”

open to view from third parties

• Suspicious domains. Malicious

or visitors passing through your

emails will use a domain that is

office. For devices that leave the

close to the legitimate domain, but

office, use passwords, passcodes

not spot-on. For instance, someone

and privacy screens. Remember to

could use Capital0ne.com instead of

also never leave your mobile phone

capitalone.com to try and pull the

or computer unattended, especially

wool over your eyes.

without a security password in place.

• Non-Standard Attachments. If the

Activate your smartphone to auto

attached file is not one you recognize

lock the screen after a short period

(like .doc for a word file, .xls for an

of inactivity, like 15 seconds.

companies, for example, mandate

Excel file, or .pdf for a PDF file), be

their closers call parties to verify

suspicious.

wire instructions received via email.

Now that you know the true state of affairs, how will you protect your

3. PROTECT YOUR ACCOUNTS

data and your company? Start today

AND PASSWORDS

with the steps outlined above and

AND YOUR NETWORK BY

Solely using a password to protect

also by staying informed. Set some

IDENTIFYING PHISHING SCAMS

an online account leaves a thin layer

google alerts for relevant content or

Phishing scams employ clever social

between a hacker and access to

read a data security blog.

engineering tactics to get you to

your business information. Always

remember that as long as you have

divulge information.

use

money (doesn’t matter how much),

2. PROTECT YOUR COMPANY

When you

multi-factor

authentication

Always

are busy it is easy to let your guard

when available to add additional

data

down.

Here are several ways to

protection to your accounts. Use a

documents, emails, etc.) and a job,

stay mindful of suspicious activities

password manager like 1Password

you are an attractive target for

(courtesy of Nerds on Site):

or LastPass to not only encrypt your

cyber criminals. And the next time

passwords but also generate complex

you walk away from your laptop,

• Requests for Sensitive

passwords.

remember to close the screen before

Information. If asked for infor-

up your security game, rotate your

If you want to really

(usernames,

passwords,

you grab your latté.

mation you wouldn’t be comfortable with sharing, pick up the phone and call a known number to verify the request.

• Implied urgency. Always stop to think if someone is threatening you to stop a service or kill a deal without

22 Originate Report | July 2019

ABOUT THE AUTHOR: Ian Group is the Head of Customer Success at ProDeal, a high-growth technology company focused on securing and automating transactions. Prior to joining ProDeal Ian was an associate in the global real estate group at Hunton & Williams LLP where he represented developers and institutional lenders in large commercial real estate transactions. CONTACT: ian@prodeal360.com

PRESS RELEASE

RCN Capital Announces CEO Transition Plan COMPANY COMMENCES BOARD OF DIRECTORS SEARCH PROCESS

SOUTH WINDSOR, Conn. (June 24, 2019) – RCN Capital, a leading nationwide direct private lender, announced today that Don Vaccaro will be stepping down as Chief Executive Officer. Mr. Vaccaro will be leaving his current role effective June 30, 2019.

Jeffrey Tesch, RCN Capital’s current Managing Director, will be stepping in as Vaccaro’s successor. Mr. Tesch, who has been with RCN Capital since its founding in 2010, led efforts to develop the company into a national brand within the private lending industry with a focus on superior customer service and transparent loan products for a diverse customer base.

“It is truly a privilege to have been named the Chief Executive Officer of RCN Capital. I want to thank all of my employees that have contributed to the company’s success and have made RCN what it is today,” said Jeffrey Tesch. “I look forward to continuing to lead the company’s growth efforts through our partnerships and strategic relationships. Under my leadership, RCN Capital will continue to take great pride in setting the highest ethical standards in the private lending industry and moving our space forward as a whole.”

The company has begun the process of assembling a Board of Directors with extensive experience in real estate finance. The Board will provide additional oversight to assist with RCN Capital’s continuing growth initiatives.

Since its inception in 2010, RCN Capital has underwritten more than 4,600 loans and overseen more than $1 billion in originations throughout the United States. In 2018, RCN Capital reported record growth by originating 1,077 loans for a total of $262M. RCN Capital is a national, direct, private lender. Established in 2010, we provide short-term and long-term commercial loans ranging from $50k to $2.5M+ for the purchase of non-owner occupied residential and commercial properties, financing of renovation projects and bridge funding. We lend to experienced real estate professionals, investors and contractors throughout the country. We value referrals; brokers are protected.

For more information on our company or our loan programs, visit our website at www.RCNCapital.com.

Erice LaCentra | 860.432.4782 | elacentra@rcncapital.com www.originate.report 23

CITIES TO WATCH

CITIES TO WATCH:

ST. LOUIS, MISSOURI

By Originate Report Staff

F

ounded in 1764 by French

in the United States. Although its

such as the 10th Street Gallery,

fur traders and acquired by

population is not as large now as it

which highlights multicultural art

the United States as part of

once was, this city’s rich history

in a variety of mediums, including

the Louisiana Purchase, the city of

and can-do attitude leaves tourists

contemporary, abstract, and realistic

St. Louis has become a symbol of

and long-time residents with a

fine art. This multicultural art,

Westward expansion and is often

feeling of welcoming and warmth

however, is not limited to the confines

referred to as the ‘Gateway to the

you will be hard-pressed to find

of the canvas – deep in the heart of

West.’ During the 1800s, St. Louis

elsewhere.

the Soulard neighborhood, 1860 Saloon showcases the city’s rich

cemented itself as a crucial trading spot along the mighty Mississippi

Must-see Locations

musical history, and hosts live music

River, and by the time of the 1870

St. Louis boasts a diverse population,

nightly. Sit back with a cold beverage

census, was the fourth-largest city

and this shows itself in locations

and listen to the blues, classic rock,

24 Originate Report | July 2019

ST. LOUIS, MS Economy: • Major industries: Aviation, biotechnology, food, and beverage manufacturing, and transportation • Minimum wage: $8.60, which will

Louis also has a high homeownership rate for low-income households, with the bottom 25 percent of earners at 55.5 percent homeownership) • Median rent price: $1,456/month for a two-bedroom apartment

increase to $10.30/hour by 2021

Job Market:

• Cost of living: 11.3 percent lower

• Forbes List: Best places for business

than national average

and careers #70 Job growth: 2.3%

Housing:

• Unemployment: 3.6 percent

• Median household income: $61,500

• Job growth: 0.6 percent (in the last

• Median home price: $117,200

year)

• Home price change: 1.5 percent price

• Loan originator average salary:

drop (in the last year)

$74,390 (8 percent lower than the

• Homeownership: 74.4 percent (St.

national average)

R&B, and Motown stylings of local

as I slowly ascended. When gazing

a bird’s eye view of the city? Then

and national acts alike. Plus, there

upon the splendor of St. Louis’

look no further than 360 Rooftop, a

skyline, it is hard not to become

sizable bar that offers a view of the

overwhelmed by the progress of

Gateway to the West 400 ft. above

those who came before us, and the

the St. Louis skyline (and also has

is also a complementary shuttle to St. Louis Cardinals and Blues games.

Of course, no visit to St. Louis is complete without a trek up to the top of the St. Louis Arch, a manmade testament to the Westward expansion of the U.S. Although I have

promises that the future holds.

Nightlife With a wide variety of bars and nighttime music, St. Louis is crawling

not been to the top of the Arch since I

with character after the sun goes

was a child, I can still remember the

down. Are you looking for blues or

steady tick, tick, tick of the elevator

R&B? Check. Are you looking for

a view of Busch Stadium, the home of the Cardinals.) It is hard not to feel invincible high above the city, with (weather permitting) views as far as the eye can see. Additionally, BB’s Jazz, Blues, and Soups offers Cities to Watch: Continues on pg. 26

www.originate.report 25

a carbonated concoction from one

the Adrenaline Zone, a 6,800 sq. ft.

of the city’s many breweries. If the

multi-level laser tag arena that can

“beer scene” is not necessarily your

accommodate groups anywhere from

scene, there are still many options for

10-400 people. If a day full of laser

you – America’s Incredible Pizza,

tag or sightseeing has you feeling

for example, provides drool-worthy

lucky, saunter over to the Ameristar

slices and fun for the whole family,

Casino, which also houses a resort

with bumper cars, bounce houses,

and spa. The casino itself, however,

and a large selection of games. More

is larger than life – its 130,000 sq.

important than reading any official

ft. area offers endless opportunities

literature about the city’s culinary

to win big, or simply play a few slots

offerings, however, is simply walking

and sip on a cold drink. Speaking of

also because of the thriving micro-

around and experiencing the city for

cold drinks…for over 150 years, the

brew culture that is alive and well

yourself – and of course, letting your

Anheuser-Busch company, which is

in the Midwest, St. Louis is certainly

nose guide the way.

headquartered in St. Louis, has been

Cities to Watch: Continued from pg. 25

a quaint atmosphere for blues fans and hungry sightseers alike, with nationally-recognized

blues

and

jazz artists frequently filling the stage and warm atmosphere with melodies, unlike anything you’ve ever heard.

Dining Partially because Anheuser-Busch has its headquarters in the city, but

providing countless Americans with

a beer lover’s paradise. Rife with such destinations as the 21st Street

Attractions

a myriad of beers. Take a journey

Brewer’s Bar, which has 50 beers on

For those of you who wish to

through the Budweiser Brewery

tap and an 80-bottle beer garden, the

escape the mundane, St. Louis has

Experience, where you will see how

often strenuous summer heat will

several activities for the thrill-

time-honored

seemingly dissipate while sipping

seeking among you. This includes

pair with 21st-century technology.

brewing

traditions

CAPITAL DIRECTORY THE MARKETPLACE FOR PRIVATE LENDING & INVESTING PrivateLenderLink.com is a robust website which connects all players in the private/hard money mortgage industry: • Brokers & Borrowers

Search for Lenders

• Lenders

Connect with Capital Providers

• Lenders

Find Service Providers

• Investors

Discover Investment Opportunities

• Everyone

Learn About Industry Events

Use our platform as a resource to grow your business.

NOTE BUYERS CORRESPONDENTS TABLE FUNDING CAPITAL ADVISORS privatelenderlink.com/capital

Private Lender Link, Inc. | 200 Main Street, Suite 200D, Redwood City, CA 94063 | 650-226-4277 | CA DRE Lic. #02057741

26 Originate Report | July 2019

www.originate.report 27

FEATURE

COMPARING RENTALS IN DIFFERENT MARKETS AND THE RISKS OF LOW RENT/HIGH CAP RATE INVESTMENTS

By Edward Brown, Pacific Private Money

M

any investors, primarily those in

the Bay Area, CAP rates have been

previously seen over the past few

California, have looked

known to drop below 2%. With

years have diminished to where

into purchasing rental

interest rates at 4+% or more,

they are few and far between.

property

states

negative cash flow is a certainty

However, the real estate market

they would have previously not

unless the buyer is putting down

is still strong, especially in those

pondered but for the low CAP rates

a tremendous amount of cash or

desirable locations, and there does

in California compared to Mid-West

the rents are unreasonably low to

not appear to be a recession in the

and Southern states.

where the buyer can raise them to

immediate future, or so say the

market levels.

experts.

There

is

so

much

in

money

in

for

an

Foreign buyers were one of the

Most investors choose to put as

prices

reasons that prices increased at a

little down as possible, or do not

of real estate, be it apartments,

rapid pace; however, many of those

have the wherewithal to put large

houses, or even commercial, have

buyers are faced with their own

down

skyrocketed to the point where CAP

country’s financial restrictions on

real estate. Many banks will lend

rates have plummeted. In premier

investments outside of their home

up to 70% - 75% for the right

locations within luxury areas in

country; thus, the multiple offers

property and a solid borrower.

California

looking

investment

home,

that

28 Originate Report | July 2019

payments

on

investment

to alleviate the investor of the

With borrowing rates still sub 5% in many circumstances, the

For those California investors [or

worry of finding a tenant to rent the

buyers of real estate must seek out

investors far from the real estate

property. Although their intentions

property producing CAP rates above

they are purchasing], they need

may be honorable, the investor

5% in order to make a prudent

to be very careful and analyze

needs to consider a few things;

investment. In addition, the debt

all aspects of owning real estate,

will the management company try

service coverage ratios imposed

including,

to:

and get a tenant for your property

by most banks have crept upwards

weather, real estate taxes, turnover

as compared to others they may

of 1.35. This, in turn, forces the

costs, and management. A CAP

also be managing? How are repairs

investor to either put a much larger

rate of 10% can be very enticing,

and maintenance issues handled?

down payment or look for property

especially if the promoter claims

Will

with a higher CAP rate. Since

to

management

have some discretion as to what

most investors do not have the

headache out of the equation. Many

is needed and when? If the unit is

extra cash to put down, they have

promoters will often sell the real

vacant, is a fee still owed to the

looked to other, less historically

estate to the investor [either from

stable

as

their own inventory or “double

Indiana, Georgia, Kansas City, and

escrow� a sale]. Or, the promoter

Tennessee. Promoters of rental real

may just act as a broker and charge

estate in these states boast of CAP

a commission for the purchase

rates exceeding 8%. Some have

of the property by the investor.

even

The promoter also may act as the

rental

markets

suggested

that

such

properties

producing 10% CAP rates exist.

also

but

take

not

the

limited

management company attempting

the

management

company

manager?

One of the biggest expenses most overlooked is the cost of turnover.

This is where a lower CAP rate property in an expensive area may be more prudent than a low rent, Comparing Rentals: Continues on pg. 30

www.originate.report 29

Comparing Rentals: Continued from pg. 29

high CAP rate location. The reason is that many expenses are not too far different from state to state, particularly, materials. Carpet is the easiest one to see to make this point. Say, for example, a 1,500 square foot house unit in a good area of San Francisco rents for $3,500 per month. This similar unit in Memphis, Tennessee might

Other issues to consider include

San Francisco compared to rent in

the distance of owning property

Memphis is significantly more as

far from where the investor lives.

a percentage of wages; as high as

Competent management is very

48% in San Francisco versus 35%

important, as the investor will not

in Memphis.

want to spend a lot of money in travel chasing the rent [or eviction

Also, looking at the increase in

if necessary]. Owning property

real estate values, the California

within 90 minutes of where the

market has increased much more

investor lives can be advantageous

than the rest of the nation. If one

if problems arise.

has used leverage, this increase rises exponentially. Could it be

rent for $1,200. However, once the tenant moves out, the unit may need certain items fixed/replaced.

Large deposits are usually required by tenants, so one could make the argument that the San Francisco house is more conservative for the investor, as the larger deposit should cover a significant portion of what may need to be replaced or

that many of the buyers of low CAP

“For those California investors

rate California real estate have

[or investors far from the real

bet on this fact? Are they willing

estate they are purchasing],

to forgo current cash flow for the

they need to be very careful

expectation of the increase in the

and analyze all aspects of

market value of the real estate

owning real estate, including,

which would dwarf the cash flow

but not limited to: weather,

they did not get on a monthly basis?

real estate taxes, turnover costs, and management.�

repaired. Just because the tenant

investments may potentially give a

is paying $3,500 in San Francisco compared

to

the

other

paying

$1,200, does not mean that the appliances or carpet are necessarily much different. Most landlords are not going to put high end furniture, appliances, etc. in any rental.

Looking

at

carpet

from

Home

Depot, for example, costs 60 cents per square foot for a specific TrafficMASTER Dockside pattern.

This same carpet costs 62 cents per square foot in the San Francisco Bay Area. A washer and dryer set from Home Depot costs exactly the same in Tennessee as it does in California. Thus, the rate of return from an expense side of replacement favors

the

California

landlord.

30 Originate Report | July 2019

In summary, out of state real estate good current rate of return, if no

Another aspect to think about is

significant problems arise; however,

the perceived tenant profile of a

should the unforeseen happen and

higher paying renter. One might

expenses become a major factor,

presume

paying

or if the economy starts to slow

$3,500 per month is more likely

down or go into a recession, stable

to be more careful within the unit

markets [many inexpensive areas

than a tenant paying $1,200. This

are the first to see large decreases in real estate] would most likely outperform, in the long run; thus, there is a reason why many savvy investors tout the motto, location,

that

a

tenant

is not always the case, of course, but more likely than not, tenants willing to pay a significant amount of rent [as compared to their wages as well as pure dollar amounts]

location, location.

are usually aware of the consequences of not

respecting

landlord’s

the

property.

In our example above, on average, rent in

ABOUT THE AUTHOR: Edward Brown is in the Investor Relations department at Pacific Private Money in Novato, Calif.

CONTACT: edward@pacificprivatemoney.com

EXECUTIONDESIGNEFFICIENCY Geraci media is a national marketing and design agency specializing in brand development and growth strategy for private lenders and real estate professionals, nationwide.

LOGO DESIGN PITCH DECK

COMPANY FLYER PR PRESS MATERIAL

WEBSITE DESIGN WEBSITE DEVELOPMENT

CONNECT WITH US! HTTPS://GERACIMEDIAGROUP.COM/

Ruby Keys | r.keys@geracillp.com | 949.379.2600 Geraci Media is part of the Geraci LLP family of companies encompassing legal, media and consulting.

For more information, see https://geracillp.com/ www.originate.report 31

FEATURE

SENATOR SANDERS INTRODUCES BILL THAT CAPS CONSUMER INTEREST RATES AT 15%

By Amy E. Martinez, Esq., Geraci LLP

T

he

proposed

law

will

that come with a higher interest rate.

amend the Truth in Lending

which are not considered finance charges under TILA “may not be used

Act (TILA) to establish a

In an editorial for CNN published

to evade the rate cap and the total

“national consumer credit usury

on May 17, 2019, Senator Sanders

sum of such fees may not exceed

rate”, which would limit the Annual

expressed his disgust at the fact that

the total amount of finance charges

Percentage Rate (APR) “applicable to

banks can borrow money from the

assessed.”

any extension of credit” to the lesser

Federal Reserve at a 2.5% interest

of “15 percent on unpaid balances,

rate, but consumers are paying a

It is important to note that Sanders’

inclusive of all finance charges or the

median credit card rate of 21%. He

bill runs counter to long-established

maximum rate permitted by the laws

further lamented that department

principals of the National Bank Act of

of the State in which the consumer

store credit cards come with an

1864 and its provisions (enacted in

resides.”

even higher interest rate, averaging

1980) which allow banks to charge

around 27%.

any interest rate authorized under

The bill is raising a lot of eyebrows

state law to other lenders located in

among banks, payday lenders, and

Sanders’ proposed bill also explicitly

private lenders who specialize in

limits fees allowed for consumer

offering riskier, short-term loans

loans, and provides that even fees

32 Originate Report | July 2019

the bank’s home state.

This authority, known as the “Most

restricted banks from engaging in

specifically that no bank can charge

most interstate lending and many

more than the general usury APR for

consumers were wholly shut out

that state, lending will be restricted

from obtaining non-recourse loans.

due to an increased unprofitability factor, and the number of credit

In place of the current law, Sanders’

options available to consumers will

new bill would substitute uniform

necessarily be reduced.

interstate lending rates used by banks with a patchwork of state

Given that the bill was introduced

laws that would vary by state and

by Senator Bernie Sanders, a self-

potentially inject uncertainty into the

described

marketplace. The change would not

and

only reduce revenues from interstate

freshman Congresswomen from New

bank lending, but would also increase

York, it is highly improbable that it

costs. These costs would cause banks

will gain traction in a Republican-

to rethink lending to consumers with

controlled Senate. Most pundits are

shaky credit ratings and ultimately

chalking the proposal up to political

result in fewer borrowing options

posturing ahead of the presidential

for America’s struggling families.

primary next year.

Also unclear in the bill is the

Still, it is worth noting that politicians

language that states, “maximum

continue to propose bills to restrict

rate permitted by the laws of

lending through onerous regulations

the state in which the consumer

which, although allegedly proposed

resides.” Most would understand

to protect the public welfare, would

that clause to mean the general

actually hurt lenders by limiting

usury law of the consumer’s home

their ability to loan to consumers,

state. For example, Pennsylvania

enforcing more restrictive lending

has a prevailing usury rate of 6%

terms, and providing less short-term

doctrine.

per annum simple interest, although

emergency financing opportunities.

The Loan Shark Prevention Act

credit unions, and consumer finance

If you are a non-conventional lender

companies to charge more than 6

and

percent for certain types of loans.

permitted interest rates for your

But, if the phrase, “maximum rate

loan, contact the Geraci Law Firm

permitted by the laws of the state in

today.

Favored Lender” doctrine, essentially provides banks with authorization to “export” across the nation the interest rate permitted by the state in which the bank is located. This national effect of the “Most Favored Lender”

doctrine

is

commonly

referred to as the “Exportation”

would

repeal

both

the

“Most

doctrine,

both

of

which serve as the foundation for our

country’s

robust

interstate

banking network and empower more consumers across the country to apply for and obtain credit.

Implementation

Alexandria

Democrat,

Ocasio-Cortez,

a

Pennsylvania law permits banks,

Favored Lender” doctrine and the “Exportation”

Socialist

of

Senator

Sanders’ bill would arguably roll the United States back nearly four decades to a time when usury laws

you

have

questions

about

which the consumer resides” means ABOUT THE AUTHOR: Amy’s practice focuses on representing lenders, brokers, real estate investment trusts, limited partnerships, individual investors, banks, hedge funds, mortgage pools, and private investment funds. Ms. Martinez is always available for client phone calls, emails and personal meetings, and encourages all clients to be as involved in the litigation process as they desire. As an experienced litigator, Ms. Martinez is able to navigate through the Court system, at both the State and Federal levels, and will help guide you through the process every step of the way. CONTACT: A.martinez@geracillp.com

www.originate.report 33

UPCOMING EVENTS 2019 EVENTS CALENDAR

AUGUST 21-23, 2019 | COSMOPOLITAN HOTEL, LAS VEGAS Where deals and capital meet! Join us for our flagship show of the year in Las Vegas! Captivate will turn its attention to the real need in the non-conventional lending industry: capital. Our Captivate Conference will connect lenders and investors and show you the tools you need to grow your business. With two and a half days of networking, Captivate will connect top sponsors directly with high net worth individuals who are looking to make their next business deal. All attendees will have access to network with one another through an app prior to the event. Join us in Las Vegas for good times, great memories, and valuable connections!

Showcase Your Upcoming Event Here Contact Alicia Carter at a.carter@geracillp.com for more information.

34 Originate Report | July 2019

THE IMPORTANCE OF

results. This global reach creates networking opportunities for building relationships and partnerships. Your audi ence has invested time in registering and listening to the information you plan to share. They’re expecting valuable takeaways from the webinar, even some thing they can put into place at their own company. This positions you and your brand as an industry lead er, or expert. Webinars can give your audience the chance to ask questions and provide feedback. This how well it performed. These metrics include the is valuable because you can address concerns, reser number of attendees, number of those registered, vations, or any lingering questions they may have and total views. The webinar can and should be recorded about your training or product in real-time. You can Webinars have grown in popularity in recent years for you, the audience, and affiliates to share with customize your presentation to your audience based on and have become an important marketing tool. others, growing the results even more. Each time a their questions and feedback to keep them engaged.

These live web-based seminars can connect you with person completes your webinar’s registration form Ask them to take an action, such as completing a task leads from all over the world. They encourage interacti they should be considered a new potential lead, or answering a question. This will increase audience by allowing the audience to ask questions orJust how whether it be for a sale or a potential partnership. participation and interest. Include guest speakers, beneficial can a webinar be to your business? Here Webinars adds a personal interaction that videos and such as industry leaders or affiliates, to speak during are 7 reasons why webinars are a fantastic marketing commercials don’t. Webinars put a face and name your webinar. These individuals should be familiar strategy. Webinars are a cost-effective way to extend with your product making you approachable, human, with your industry and value of your product. They your reach globally. Rather than pay for flights and and someone they can trust. Educating them on how will be able to educate the audience on the benefits hotels to meet with individual leads, you can engage your product can benefit their company is the first or impact, validating information you have or will with a larger group over their computer screens. step in opening the door to future discussions and be sharing. By inviting a guest speaker, you can also People from all over the world can attend, providing partnerships. It is essential to show both new and increase the webinar’s attendance by including your your brand or product with the potential to see huge established leads how your product or service can guest’s audience and following. This can grow the results. This global reach creates networking opporimprove or enhance their workplace. Depending on number of leads you may gain substantially. Results tunities for building relationships and partnerships. the prospect, the sales process can be slow. Businesscan be seen quickly from webinars. After hosting a our audience has invested time in registering and lises want to convert a lead into a cusWhile it’s cerwebinar you’ll have metrics to measure how well it tening to the information you plan to share. They’re tainly important to provide useful information and performed. These metrics include the number of at expecting valuable takeaways from the webinar, tips to your audience, it’s equally important to share tendees, number of those registered, and total views. even something they can put into place at their own how your brand or business can help them achieve The webinar can and should be recorded for you, the company. This positions you and your brand as an this. How can your product be a solution to their audience, and affiliates to share with others, grow industry leader, or expert. problems? Your webinar should show the audience ing the results even more. Each time a person com the value of your brand. Garnering interest in the pletes your webinar’s registration form they should Webinars can give your audience the chance to ask product and its potential impact is the first step in be considered a new potential lead, whether it be for questions and provide feedback. This is valuable becompleting a sale. a sale or a potential partnership. Webinars adds a cause you can address concerns, reservations, or any personal interaction that videos and commercials lingering questions they may have about your trainThere are numerous benefits to hosting a webinar. don’t. Webinars put a face and name with your prod ing or product in real-time.

Though this article only touches on a handful of uct making you approachable, human, and someone them, it should be clear that webinars are an effecthey can trust. Educating them on how your product You can customize your presentation to your auditive tool for engagement and growth. As you take can benefit their company is the first step in opening ence based on their questions and feedback to keep these benefits into account, you should begin to the door to future discussions and partnerships. It them engaged. Ask them to take an action, such as think how you can use a webinar for lead generation is essential to show both new and established leads completing a task or answering a question. This will and to increase traffic, which will yield great results how your product or service can improve or enhance increase audience participation and interest. for your business. Webinars have grown in populartheir workplace.Depending on the prospect, the ity in recent years and have become an important sales formation and tips to your audience, it’s equalInclude guest speakers, such as industry leaders or marketing tool. These live web-based seminars can ly important to share how your brand or business affiliates, to speak during your webinar. These inconnect you with leads from all over the world. They can help them achieve this. How can your product be dividuals should be familiar with your industry and encourage interaction by allowing the audience to a solution to their problems? Your webinar should value of your product. They will be able to educate ask questions or provide feedback in real-time. show the audience the value of your brand. Garnerthe audience on the benefits or impact, validating inJust how beneficial can a webinar be to your busiing interest in the product and its potential impact is formation you have or will be sharing. ness? Here are 7 reasons why webinars are a fantasthe first step in completing a sale.There are numertic marketing strategy. ous benefits to hosting a webinar. Though this article By inviting a guest speaker, you can also increase the only touches on a handful of them, it should be clear Business Development • Fintech/Newest Loan Programs • Automation in Today’s Evolving Society • Upcoming webinar’s attendance by including your guest’s auWebinars are a cost-effective way to extend your that webinars are an effective tool for engagement dience and following. This can grow the number of reach globally. Rather than pay for flights and hotels Trends & Changes • Marketing & Outreach • Essential Tools & Technologies • New Legal Issues and Regulations and growth. As you take these benefits into account, leads you may gain substantially. to meet with individual leads, you can engage with a you should begin to think how you can use a webilarger group over their computer screens. nar for lead generation and to increase traffic, which 5. Results: will yield great results for your business. WebiResults can be seen quickly from webinars. After People from all over the world can attend, providnars have grown in popularity in recent years and hosting a webinar you’ll have metrics to measure ing your brand or product with the potential to see huge have become an important marketing tool. These

CONTENT L E T U S H E L P YO U !

CURRENTLY ACCEPTING ARTICLES

Share your ideas! Email submissions@originate.report for more information.

www.originate.report 35

Lockett-N-Homes www.lockettnhomes.com Info@lockettnhomes.com

Direct Lender

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

Direct Lender

*All 50 States

5M

AL, AK, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MO, MS, MT, NC, NE, NH, NJ, NM, NV, OK, PA, RI, SC, TN, TX, UT, VA, WA, WV, WI, WY

50M

AK, AR, AZ, CA, CO, CT, DE, FL, GA, IL, IN, AI, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI, WY

5M

50K 100K 150K

55/33

Direct Lender

75/30

JCAP Private Lending www.jcap.net info@jcap.net (949) 236-6600

10M

Direct Lender

100K Helvetica Group www.helveticagroup.com loans@helveticagroup.com (310) 575-3301

*AZ, CA, NV

LET LENDERS KNOW YOU FOUND THEM IN 36 Originate Report | July 2019

*CA

REV. 06.25.19 2019

Direct Lender

* = STATES LENDING IN

Fidelity Mortgage Lenders, Inc. www.fidelityca.com psteigleder@fidelityca.com Peter Steigleder (818) 422-8879

75/2

50K

LENDER

90/30

H O M E

TYPES OF PROPERTIES

70/30

L O A N

15M

2019

TYPES OF LOANS

MI NI MU M LO MA AN XIM $ UM Co LO mm AN er $ Co ns cial um Br e r idg Co e rp o A c rat i o qu ns i /T No sitio ru s ns te s a n ts/ L Pu eg dD rc h a ev e l o l Ent Re ased itie pm ha s en b ts Bla / Re mo nk S e e t Lo d e l e co d/ nd ans Re Jo no int Mor va tg V te d a en Fo ge t re i g n u re s s Ot h e N at i r on als MA XL OA NCh TO ur -VA ch LU es La E( /T nd % em (B )/M Au ar p AX les to m e / /S TE Co o RM Re mm yn t ag t a i i ve (YR e og l( rc i S) S En ue al/ s te r h o p L s o t ai / t ) Ga S nm tri sS en pM all Le t at i o t isu s) ns re Ho (G sp olf i Co Mi t alit ur y( xe se d H R e - u s e o te s / M ls) sid ar Pr ina In e o n p Ra d ) n c t i a l I e r t i e u st r he nv s ial sa Se es tm lfnd s en Fa R e to ra tP ge rms st a ro pe rti O f u ra n fic es t s e

LENDER DIRECTORY

TYPES OF PROPERTIES

Direct Lender

Zinc Financial Inc. www.zincdinancial.com office@zinc.net Tom Valentino

Direct Lender

SFR

CA, CO, HI, TX, WA

90/2

10M 50M 2M

100K 50K

65-5*/70/5*

Sunset Equity Funding www.sunsetequityfinding.com lending@sunsetequitygroup.com (833) 786-7381 Los Angeles, CA 90010

*CA

75/5

Direct Lender

*65% For commercial and mixed-use and 70% for multi-family and residential investment. 5 years (custom terms are available)

NATIONWIDE EXCEPT ALASKA, SOUTH DAKOTA, NORTH DAKOTA

90/2

Sandstone Capital, Inc. www.sandstonecapital.net josiah.p@sandstonecaptial.net Josiah Puder (310) 909-8555 Ext. 1040

10M

Direct Lender

200K Redwood Mortgage Corp. www.redwoodmortgage.com RMC@redwoodmartgage.com (800) 659-6593 San Mateo, CA 94402

AL, AK, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, AI, KS, KY, LA, ME, MD, MA, MI, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, TN, TX, VT, VA, WA, WV, WI, WY

REV. 06.25.19 2019

Direct Lender

* = STATES LENDING IN

Patch of Land www.patchofland.com originations@patchofland.com (888) 250-2216 Sherman Oaks, CA 91403

50K

85/2

3M

50K

LENDER

TYPES OF LOANS

MI NI MU M LO MA AN XIM $ UM Co LO mm AN er $ Co ns cial um Br e r idg Co e rp or at i Ac on qu s/ i Tru No sitio s ns te s a n ts/ L Pu eg dD rc h a ev e l o l Ent Re ased itie pm ha s en b/ ts Bla Re m nk o e de t Se c o Lo a n l e d / nd s Re Jo M no int or va tg V te d a e Fo ge nt re i g n u re s s Ot h e N at i r on als MA XL OA NCh TO ur -VA ch LU es La E( /T nd % em (B )/M Au ar p AX l es to m e / /S TE Co o RM Re mm yn tiv ag t ai e (YR er l( cia ogu S) Sh En es l/ o te r Lo t ai ps/ t) Ga St nm rip sS en Ma Le t at i o t lls isu ns ) re Ho (G sp olf it a Mi lity Cou xe rs e (H d R e - u s e o te s / M ls) sid ar Pr ina I Ra entia oper ndu ) nc st r tie l I he nv s ial sa Se es tm lfnd s en Fa R e to ra tP ge rms st a ro pe u ra rti Of nt fic es s e

ADVERTISE WITH ORIGINATE REPORT’S LENDER DIRECTORY AND BE SEEN BY 35,000 INDUSTRY PROFESSIONALS EACH MONTH. CONTACT US AT (949) 379-2600

AZ, CA, CO, IN, MI, NM, OH, TN, TX, WA

ORIGINATE REPORT! www.originate.report 37

IT’S NOT JUST ABOUT IDEAS. IT’S ABOUT THE EXECUTION. WE PROVIDE PEACE OF MIND

Geraci LLP is a law firm, media, and consulting company that caters to the non-conventional lending space.

We are the “go-to” provider for all lending-related matters and are your resource to help you grow your business.

CORPORATE AND SECURITIES

LITIGATION AND BANKRUPTCY

BANKING AND FINANCE

MEDIA SERVICES

Securities Offerings & Compliance* Entity Formattion* Corporate Governance* Licensing*

Creditor Representation Title Claims Loss Mitigation

Loan Documents* Lending Compliance* Foreclosure/Loss Mitigation

Branding Consultation Pitch Decks Logo Design Web Development Graphic Design

CONNECT WITH US! COSMOPOLITAN HOTEL, LAS VEGAS

AUGUST 21-23, 2019

FOR MORE INFORMATION VISIT: WWW.GERACICON.COM

90 Discovery Irvine, CA 92618 | Phone: 949.379.2600 | Fax: 949.379.2610 www.geracillp.com | www.geracicon.com | www.geracimediagroup.com 38 Originate Report | July 2019

*All 50 States