Originate Report - August 2018

AUGUST 2018

THE OFFICIAL MAGAZINE OF GERACI

Cities to Watch:

Las Vegas

PROFILE:

Inside August:

REFCORP TEAM

Don’t Worry, BRING HAPPY

Adam Child and the

Watch Adam Present LIVE at

Captivate West August 26-28

Kellen Jones The FUTURE of LENDING

Automation & AI

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ANTHONY GERACI CEO/Editor

RUBY KEYS Marketing/Editorial Director

JOHN PELACHE Account Executive

ALICIA CARTER Marketing/Event Coordinator

MAX BERGER Content Editor/Content Marketing Specialist

DAVID BASEN Digital Marketing Specialist

TAYLOR MIRANDA Marketing Assistant

PAM HUBER Art Director/Designer

CONTRIBUTORS Anthony Geraci • Robert Greenberg Clay Malcolm • Taylor Miranda JT Terrell • Cathleen Yates

Letter from the Editor Welcome to our August 2018 Edition of Originate Report!

We could not be more excited to begin our second year of publication! To those

of you who have been around from the beginning, we thank you for your all your support. To our new readers, we hope you find value and inspiration in this

edition’s messages. Learn to combat the increased negativity and pessimism in the world today that threatens to overwhelm us, and try to discover what your

FOUNDING UNDERWRITERS

red paper clip is (read on to find out what that means).

This edition is themed around Captivate West 2018, our biggest event of the

year. Pay close attention to our Cover Story and Industry Spotlight – you’ll

MARK HANF President, Pacific Private Money

have the chance to meet them there! The conference will connect lenders and investors, focusing on the real need in the non-conventional lending industry –

Capital. We hope you’ll join us there at the Cosmopolitan Hotel in Las Vegas on August 26-28. Please visit geracicon.com if you are

ORIGINATE ONLINE www.originate.report

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

interested in attending.

To Your Success, Max Berger

Originate Report Content Editor

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

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

GERACI CONFERENCES www.geracicon.com

www.originate.report 3

contents AUGUST 2018

Features

3 Letter from the Editor

10

Join us for Captivate West 2018!

6 Anthony’s Rules for Success The Red Paper Clip

The power of influence.

By Anthony Geraci, Geraci LLP

10 Get $#!& Done with JT Terrell

Don’t Worry, Bring Happy

Creating good vibrations on a regular basis.

By JT Terrell, Petra Coach

12 Cover Profile Arizona Gold: Real Estate Finance

Corporation (REFCORP)

18

By Cathleen Yates, Originate Report

15 Industry Job Watch

16 Industry Spotlight

Kellen Jones

President, Cache Private Capital

18 The Future of Lending: Automation and AI

Demands for speed and efficiency are changing the market.

By Robert Greenberg, Patch of Land

20 Will Consumers Seek Mortgage Alternatives as Interest Rates Rise?

22

16

Set yourself up for success by adjusting to market conditions.

By Clay Malcolm, New Direction IRA

22 Cities to Watch

Las Vegas, Nevada

By Taylor Miranda, Geraci LLP

24 Upcoming Events 26 Loan Home

4 Originate Report | August 2018

20

6

www.originate.report 5

ANTHONY’S RULES FOR SUCCESS

The Red Paper Clip

By Anthony Geraci, Geraci LLP

T

he Power of Influence – One Paper On July 14, 2005, he traded the paper clip for a fish- ice Cooper. In May, he traded the afternoon with Cooshaped pen. After he obtained the fish-shaped pen, he per for a KISS motorized snow globe. The next week Clip That Ruled Them All

Every great story has a happy beginning, right?

Remember those tales when you were a kid? They usually began with “Once upon a time.” Well, I have that same beginning here, and I think it’s a tale you’ll love.

“Think twice before you speak, because your words and influence will plant the seed of either success or failure in the mind of another.”

– Napoleon Hill

“Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience and the passion to reach for the stars to change the world.”

– Harriet Tubman Once upon a time, a story emerged so preposterous I thought it was made up. After I found that it was completely true, I had to share it with you. You see, it started with a single red paper clip. (Perhaps the exact one above?)

What’s so great about this amazing, gorgeous, beautiful red paper clip? Great question. A Canadian named Kyle MacDonald decided that he no longer wanted said paper clip (why, I haven’t a clue, because who can’t use a great paperclip?) He decided to trade it in the barter section of craigslist.org.

6 Originate Report | August 2018

drove from Vancouver to Seattle and traded the pen for a hand-sculpted doorknob that same day. Then, 11 days later, he travelled to Massachusetts to trade the doorknob for a Coleman camp stove (with fuel).

In September, he went to California and traded the camp stove for a Honda portable electric generator. Then in November, he traded the generator for an “instant party,” which was an empty keg, an IOU to fill the keg with the beer of the bearer’s choice, and a neon Budweiser sign. In December, he traded the “instant party” for a Ski-Doo snowmobile. Within the same week, he traded the snowmobile for a two-person trip to Yahk, British Columbia (Honestly, I had to look this place up. Looks cold. But I digress.).

In January 2006, he traded that trip for a box truck (seems much more useful in my humble opinion). In February, he traded that box truck for a recording contract in Toronto, Canada. In April, he traded that contract for one year’s rent in Phoenix. Later that month, he traded the year’s free rent for one afternoon with Al-

he traded the snow globe to actor Corbin Bernsen (apparently a snow globe aficionado) for a role in the film “Donna on Demand.” Finally, on July 5, 2006, he traded that movie role for a two-story farmhouse in Kipling, Saskatchewan (no mortgage, either, if you were thinking there was a catch).

Influence From a Paper Clip? What’s Really Happening

So was this all about a paper clip? In the beginning, once upon a time, it was a man’s dream to obtain a house with what he had to trade: a paper clip. At some point during the journey, he got publicity, right around the camp stove time. From there, it became more than his journey – it became the journey of an ordinary person achieving extraordinary things with less than extraordinary items. And almost everyone can identify with Kyle.

What is your journey and purpose? More importantly, what’s your red paper clip?

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

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

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GET $#!& DONE with JT TERRELL

Don’t Worry,

By JT Terrell, Petra Coach

W

JT Terrell, Monthly Columnist

hen I turn on the 24/7 news channels, the negativity hits me like a ton of bricks.

Between political division, economic instability, impending war, racial tensions and the debate over climate change, it’s just enough to make me want to stay in bed and “tap out” for the day (or forever). It seems all we ever hear is bad news, and there is a profitable reason for that. Those scary headlines attract eyeballs and sell advertising. The good old days when news reporters reported all of the news are dead and gone, and they ain’t coming back, so I say we become our own

reporters. What if we took the lead and actively sought out good news to balance against the tidal wave of bad news being forced upon us? What if we were the conduit from which our people received information that would start the day off riding high, rather than digging out of a dark hole?

Bring Happy!

of a weight loss goal achieved, but the chance to share good vibes can give folks pep in their step first thing in the morning. This is an opportunity for icy co-workers to become actual teammates and share something good from their individual worlds, or just bring news that is helpful to the group at large. In the absence of some personal good news, folks could bring info about a new app they have found useful or a home-delivery service they discovered.

The important part is they have an opportunity to share their “wins” in a format that you have created for them.

Show Appreciation

Your organization has lots of great people doing fantastic work. Do you ever take the time to celebrate them? I don’t mean a glance at a scoreboard where the same two salespeople reside month after month, but a heartfelt gesture of appreciation from one person to another performed publicly and shared with your team?

Inside of our quarterly planning sessions, we encourage team members to write thank you cards to each other, and then they read those cards aloud before handing them to the recipient. We call it a public display of appreciation (PDA).

Typically, the first time we do this, there are lots of nervous chuckles and red faces, but every one gets through it and later remarks that the cards were the favorite part of the day. At that point, I say, “How about we do this more than once a quarter?”

Let’s take a look at what we can do to create good vibrations on a regular schedule, whether it is at home or in our workplaces, and get everyone’s day off to a great start.

It feels great to receive an old fashioned, hand-written note of thanks, especially when it pertains to something you’ve done that impacted another person. But, it also feels great to give thanks and make someone else’s year.

At Petra Coach, we mandate the use of meeting agendas (“no agenda, no attenda”) with our member companies for daily, weekly, monthly meetings and so on, but the content of those agendas might surprise you.

1. Start your note with a specific reason why someone deserves appreciation. Begin with “I appreciate you because….”

Get Personal

Certainly, there is the requisite reporting of metrics and top priorities of the day, but the first item on the agenda is always a personal HIGH from the team. It might be a picture of a kid’s birthday or an announcement

10 Originate Report | August 2018

Our simple rules are:

2. Tell the story of something that happened and the impact on you, them or both of you.

3. Tie it back to a company core value, if possible.

4. Deliver the note in person and read it aloud before handing it to them.

This is the way to increase employee engagement, and if you are a leader of people, you should start doing this today. Make it dummy proof and set a scheduled reminder to yourself to write one note a week. Systematized appreciation does not make it less genuine; it just makes it consistent and effective.

Celebrate Wins

Tell me if this sounds familiar: You and your colleagues get together for a meeting and the only things you ever get around to talking about are the problems, action items and under-performing units.

It’s no wonder everyone hates meetings and avoids them like the plague. Certainly, you always need to be evaluating performance and improving processes, but you also need to take the time to shout out high performers and achievements that you have met as an organization.

Add an agenda item where each project team can highlight one of their milestones, or congratulate the top performers one at a time in full view of the company.

That kind of ebb and flow can keep your meetings positive and forward feeling, even when you have a lot of heavy lifting and data sharing to do.

It’s one thing to send out a memo noting a huge new account; it is something else entirely to pull that team up on a stage and give them a round of applause with boxing-style championship belts presented to them. Those kinds of moments will live on in the memory of each of those team members, and they will be more productive and focused on the next deal, so they can have that moment again.

Those kinds of impact points can be further explored in the great book, “The Power of Moments” by Chip and Dan Heath. I can’t recommend this book more highly for ideas of actionable stuff you can do in your organization to get the most out of your relationships.

So, now that you are armed with a few ideas of how to combat the onslaught of negativity we face each day, go do something about it. The people in your world will love you for it. They might even write you a card.

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

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

Profile: Chuck Hershson continues on pg. 12

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COVER PROFILE

Arizona Gold

Real Estate Finance Corporation

By Cathleen Yates, Originate Report

R

eal Estate Finance Corporation (REFCORP), based in Scottsdale, Ariz., provides short-term construction loans and value-added revitalization loans on residential real estate across Arizona and is an active investor in opportunistic real estate projects. REFCORP is currently funding new construction loans on quality residential projects in high-demand areas and is funding valueadded neighborhood revitalization projects in the Phoenix and Scottsdale areas. In addition, REFCORP has just completed its first assisted living residential rehab project with another in the works.

Meet President and CEO Adam Child and the REFCORP team at the Captivate West conference in Las Vegas August 26-28. REFCORP is the Title sponsor for the conference and Adam Child will be the featured speaker.

The city of Phoenix is experiencing a renaissance. Since the financial collapse of 2008, when Phoenix was one of the most impacted U.S. cities, the downtown area has rebounded in a spectacular way. Community leaders and developers have revitalized aging warehouses, invited new business, restaurant and retail tenants; created a cultural center; and constructed a light rail system connecting Phoenix Sky Harbor International Airport with nearby communities.

Driving the renaissance is an influx of opportunity: the establishment of Arizona State University and the Phoenix Biomedical Campus, the successful establishment of technology companies wooed from Silicon Valley and elsewhere (an increase of 318% since 2012), and increased employment (up 9% between 2006-15).

All of which has led to the thought that Phoenix is a highly desirable market to invest in.

Real Estate Finance Corporation (REFCORP), a Scottsdale-based private money lender and real estate investor, finds all this activity working to its advantage. “The demand in the marketplace is high, the inventory is low and the ability to borrow is getting easier,” says Adam Child, President and CEO of REFCORP. “There is more capital available to buy a home, and the job market is very strong. In downtown Phoenix in particular, the area and outer lying neighborhoods have become very popular.”

Formed in 2008, REFCORP launched full force in 2015 with Child, his partner and Fund Manager James

12 Originate Report | August 2018

Guajardo, and Vice President of Operations Ashley Spisak. The company initially offered loans for short-term construction and revitalization projects throughout high-demand areas in Arizona, and quickly diversified by investing in residential revitalization projects. REFCORP has since grown to six employees (Dawn Monforte, Vice President of Capital Development and Investor Services; Taylor Quenzler, Director of Marketing, Project Management and Design; and Alesondra Mora, Manager of Marketing and Operations) and 73 residential and rehab properties currently in development throughout Phoenix, Scottsdale and rural Arizona.

“We have ground-up construction in north Scottsdale right now, which we’re very excited about,” Child says.

“We’re also excited about our rehab projects in downtown Phoenix, where there are a lot of older properties, but it’s a popular part of the community. We have found a niche in rehabbing these properties, and in many cases demolishing them and putting brand new homes in their place, and they’ve been very popular.”

Investors in the rehab projects typically earn a 10% return. “We get three types of responses to that,” Child says. “One is, ‘The rate of return is too good to be true;’ the other is ‘It’s not enough;’ and the third is, ‘That’s great, how do I get involved with you guys?’ It’s not that the rate is too good to be true or not high enough. The rate is really the function of our business model, and the investments and loans we make are very short term.

The money that we lend or invest in these projects I like to compare to credit cards. We all use credit cards for convenience. If you don’t pay it off in full, you’re left with a very high interest rate that no one really wants to talk about. The loans we make and the capital we use is really like the credit card of real estate lending. It’s a short-term convenience loan. And because it’s shortterm, it justifies a higher rate of return. A lot of times, the return is associated with higher risk when in fact many of our projects have very low risk. We have an average of well over 30% equity in our projects. In many cases 40% equity.

“I’m told that it’s a very high rate of return compared to what investors are getting in California, and I’m told in other parts of the country it’s a low rate. It’s our rate in Arizona and it works very well for us.”

Criteria for a rehab project starts with a cost basis: the cost to acquire the property, the cost to build or rehab the project that meets REFCORP’s quality standards, and the market conditions that dictate the sales price.

Also, the location is key – the project must be in a part of town that is desirable to a buyer.

The REFCORP team then works with an architectural and contracting team to put out a customized product for the location. In downtown Phoenix rehab projects, the buyers tend to be young professionals looking for proximity to their employment, and prefer a contemporary look in the architecture and décor. In north Scottsdale, the homes often attract older or retired couples relocating from other parts of the country, so REFCORP funds a more traditional style home.

“We try to get into a project that allows us to deliver the best finished product,” Child says. “The best finished product is also the most desirable to the buyer. If the pricing is so tight that we can’t produce what we want to, we’ll pass on that project.”

Quality is a non-negotiable item. Finished projects shine like model home showcases, complete with neutral décor such as plank flooring, whitewashed kitchens, coordinated hardware and plush furnishings. “We want everyone walking into our homes to be completely wowed, and I think we’re accomplishing that. Our finished product has been very well received and well liked, and some of our homes have received ‘best on tour’ from the real estate community, and that’s where we want our buyers to think of us. We want to be in that space.”

Investors in the rehab projects can look forward to becoming part of the REFCORP team. New investors are invited to take on-site tours of the projects, review operations, and meet the team members in the field and in the office. The effort put into building relationships pays off, says Child. “We put a lot of energy into getting to know our investors and them getting to know us. I think it becomes really powerful at that point. It’s more than writing a check; it’s becoming familiar with exactly what we do. That’s been a very powerful approach and what I think attracts investors to us.”

The company’s track record also attracts investors, some of whom have been with REFCORP for several years.

After a build-up period of approximately four to eight months, the projects typically sell within 30 days. Child seeks investors who are able to invest a minimum of $100,000 for the 12-month period. The investor holds the first or second deed of trust until the sale of the project.

REFCORP continues on page 14

www.originate.report 13

REFCORP continued from pg. 12

James Guajardo, REFCORP’s fund manager, sees the shortterm investments as ideal for risk management of the investor’s portfolio. “If the market falls, and you’re stuck in a 10-year loan, you can’t get out,” he says. “If market trends change, then exiting every 12 months is a beautiful model for an investor.”

Meet the

Adam Child, President & CEO

REFCORP

On the borrowing side, REFCORP requires 20% down and at least a 30% equity position on the finished product. Competitors are getting more aggressive, Child says, and requiring less money down. REFCORP is particular about track records and backgrounds, and as a result, many loans are made to repeat clients who are building and selling a product and coming back to REFCORP for the next one. Some borrowers have been affiliated with Child for 20 years or more, since his start in the business in 1989 as a mortgage broker.

James Guajardo

Like most hard money lenders, REFCORP funds its loans quickly, usually within one to two weeks depending on the due diligence required. “We do fund very quickly because it is the nature of our business,” says Child.

For new investors and borrowers, REFCORP holds educational seminars called “Lunch ‘n’ Learn,” where new investors and borrowers can enlighten themselves on the topics of how to borrow hard money and how to invest in deeds of trust. Child says there is confusion about how to approach a firm like REFCORP to apply for a loan. “I think there is a lack of understanding within the real estate community regarding what a private money lender is and how we operate.

We do educational events to help people break through that.

We walk them through the entire process because we want every one of our borrowers to know how we operate and what they’re getting in to. It just makes a better environment for everybody.”

Assisting with the company’s forecast will be Stan Harley, a noted financial analyst with a 100-year strategic financial model. He also publishes The Harley Market Letter for advanced technical analysis of the financial markets. “Stan is providing us with a better barometer,” says Guajardo. “With his statistical analysis, we’re building a business model. It’s a very unique component, especially for residential. Not many homebuilders look at a 100-year trend. We can see where the market has been and where it’s going.”

Along with the REFCORP team, Harley will be available to meet potential clients at Captivate West in Las Vegas August 26-28.

Harley and other financial analysts predict a dip in the market in 2022, but REFCORP is preparing two years in advance to ensure the company and its investors are protected.

“No one can do a great job unless we have the right outlook in place,” Guajardo says. “We are gauging for the future.”

14 Originate Report | August 2018

It takes a unified team, flexibility and communication to manage 73 properties in development and ongoing loan processing. REFCORP staff attributes their success as a team to the family environment, where everyone leans on each other for assistance, shares responsibilities and comes together to create solutions to new challenges.

“Everybody understands their value and is appreciated, and hopefully that starts with me,” says Child.

“As the team leader, I like to think I play a role in the glue that keeps everyone together. I’m not a babysitter. The team has latitude and the ability to make decisions in their own space. We hold a weekly team meeting where each provides updates to their projects and we address issues and find solutions. It’s a healthy work environment, and every day, everyone hits the ground running. Everyone is educated and has a tremendous work ethic.”

Ashley Spisak

James Guajardo

Partner, Fund Manager, Project Acquisition and Development

REFCORP’s role in the revitalization of Phoenix and surrounding areas is for the long term. Eventually, the company may invest in other cities, says Guajardo, but for now, Phoenix holds more than enough opportunity. Group homes are a new target with the current societal focus on mental health and drug addiction and a predicted 30-year shortage for assisted living.

According to the Arizona Regional Multiple Listing Service, the 2018 first quarter median and average home prices have increased 9.5% over last year in Maricopa County, and the average number of days on the market has decreased by 7.2%.

“We’re always looking for investments one to two years in advance,” says Guajardo, “and the right investments to invest in. This year, we bought three different developments that will sell in the next two years.”

Team

Dawn Monforte

James Guajardo believes if you surround yourself with successful people, you’ll be successful because you’ve built the right team. “No one can do a great job unless we have the right outlook in place,” he says.

Guajardo and Child have known each other for 14 years and formed their first fund in 2016. Their complementary relationship has allowed the number of projects to grow from 17 to 73 in 2.5 years. Now Guajardo seeks out the investments, evaluates them and oversees the project to completion. His 20 years as a developer with experience in evaluation, acquisition, rehab and disposition helps him steer REFCORP into the future. Since 2014, he has also served as president of Wealth Investor Network, for which he provides weekly real estate education and development seminars for investors.

Taylor Quenzler

“We are very fortunate to have come together,” says Child.

“We get along really well and look at things similarly: the quality of the project, whether we should acquire it, and attention to detail.”

Ashley Spisak

Vice President, Operations & Compliance Alesondra Mora

“It’s been a team effort from Day 1,” says Ashley Spisak, Vice President of Operations and Compliance. “For me, being a young professional and seeing the start-up process was hugely fulfilling. The family dynamic makes it work and that’s why we’ve been able to communicate our way through all issues.”

She started in the industry as a loan processor six years ago and joined REFCORP in 2015 and expanded her role to include licensing, compliance, MLS reporting and sales logs. She is also a licensed mortgage loan originator. She has played an important role in several administrative improvements, including loan processing, underwriting, loan documentation and reports, and the implementation of Calyx Point and The Mortgage Office software.

INDUSTRY JOB WATCH

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Looking to fill a posit Originate ion? Adve Report’s rtise it he Industry re in of thousa Jobs to g nds of qu et it in fro a lified can nt Contact J didates. ohn Pela che at joh n@origin or (949) 3 ate.report 79-2600 .

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Spisak is also Child’s oldest daughter of five. The most important tip she’s learned from her father? “We’re the problem solvers. Rather than focus on the problem, there is always a solution and we should always be forward thinking. That’s huge, and it’s also applied to my life.”

Dawn Monforte

rallying investors for educational events. Today her role is multifaceted: Planning and creating marketing collateral, managing projects at the manufactured home communities in Cottonwood and Tonopah, Ariz., in addition to decorating the Phoenix and Scottsdale projects that are under construction.

“I wouldn’t describe any day that I’ve had as normal,”

Vice President, Capital Development and says Quenzler. “Every day is its own adventure. I work with contractors on all phases of our projects as well as Investor Services Dawn Monforte works directly with investors to help educate them on alternative investment strategies and processes, keeps them informed of progress on lending and development projects, provides property tours, and handles other capital needs and services. She has opened sales support centers for major corporations including PayPal and Verizon Wireless. “l met Dawn three years ago,” says Child, “when she was buying one of my homes. It was coincidence that she worked in raising capital for another company and I hired her right away.

She has become one of the family.”

Taylor Quenzler

Director of Marketing, Project Management and Design

Taylor Quenzler joined the REFCORP team in 2015 after marketing and learning the foreclosure side of the industry with another firm. Taylor is a Chicago native as well as a proud Sun Devil graduate from Arizona State University. She has played an important role in building up REFCORP’s Lunch ‘n’ Learn program and

city staff to coordinate power, water, etc. for our projects. I might make inspections and take photos of projects or design them by shopping for décor.” Whether it’s designing promotional materials or choosing colors for a project’s interior and exterior, Quenzler says the most challenging part is creating something new every time. “You don’t want to use the same colors, formats or home choices.”

Quenzler is also part of the family: She is Child’s middle stepdaughter and enjoys working with her family. “We work well together because at the end of the day, we’re family,” she says. “Some of us are blood relatives, but we all have an enormous amount of respect for what each person does. If I need help, there’s always someone there willing to help. If there’s a new task, then there are multiple people willing to take on that task and learn. If there’s an issue, it becomes a group chat and we resolve it as a team.”

Alesondra Mora

Manager, Marketing and Operations

Alesondra Mora is the newest member of the team and joined REFCORP in March 2018. Mora assists in the marketing efforts creating brochures, banners, and webbased designs. She also manages company electronic communications, project draws, accounting activities, and much more. Her 10 years of marketing and graphic design experience, as well as operations management skills, has allowed her to assist in many roles at REFCORP. A Chicago native and graduate of Indiana University Bloomington, she moved to Arizona in 2015 and hasn’t looked back. “My father taught me, ‘Always be looking 10 miles down the road,’” she says. “This mindset affects my approach to each task. What effect will this have now, tomorrow and even next year? I’m proud to be part of a company that is also looking concurrently at its present and future impact.” Mora is also part of the family, and is Child’s niece.

While everyone has their own role to play, the business of lending and investing is still a team sport: You need a quarterback to throw the ball and a receiver to catch the ball, but you still need everyone else to play the game.

But this, says Child, is the key to the team’s success.

“We’re definitely a team of jacks-of-all trades,” he says.

“Nobody sits in a box.”

CONTACT: Adam Child, President & CEO at adam@refcorpaz.com.

Contact REFCORP at www.refcorpaz.com or (480) 477-7730. www.originate.report 15

SPOTLIGHT

Industry Spotlight:

Kellen Jones

K

President, Cache Private Capital

ellen Jones is the President of Cache Private Capital Management, a Regulation D 506 mortgage REIT that was founded in 2008. The Fund makes short-term, business-purpose, asset-backed commercial loans to qualified borrowers in strong markets. CPC’s cornerstone product, CPC Diversified Fund, invests its funds in a diverse portfolio of non-leveraged, secured asset loans that mature in less than one year and are backed by high-quality first-position collateral.

Originate Report (OR): How did you get started in the private lending industry?

Kellen Jones (KJ): When banks were extending credit to anyone and appraisers were telling people equity existed in their homes, we started doing seminars about making sure you do something smart with the money you borrow from your home (especially since we saw a correction coming). That “smart” thing was making private loans. When hordes of people were asking us how to lend money privately and the banks stopped lending money at all, we started a fund. Within a year or two, we realized what it took to keep deal-flow channels full. Then we started building software solutions to address our own pain points. It all happened so fast, and now we’re proud of our 10-plus years in the industry.

OR: What excites you about the private lending industry?

KJ: No day or deal is the same. Behind every piece of collateral are a business and a good story. It’s a sector of finance and of the economy where you really get to see people’s dreams and help make them a reality. Now, more technology is being introduced and it isn’t particularly over-regulated. The democratization of finance is really amazing. Private lenders made it easier to borrow money than walking into a bank.

Now banks are learning from private lenders how to stay relevant.

OR: What sets Cache Private Capital (CPC) apart within this industry?

16 Originate Report | August 2018

KJ: We have an extensive 10-year track record, which is a long time for a private lending fund. Since inception in 2008, we’ve never had a down month, meaning, we’ve always experienced growth and disbursed yields (and at an average 10.5% net return) to our investors. Last year, one of our funds hit 12.10% and the other was not far behind. We maintain classic, human underwriting techniques while streamlining with technology. Our deal flow is second to none and our fintech platform is slick! Our offering is non-leveraged, we’re all investors ourselves, we only make money as the manager when investors make money (no traditional fee) and we have no lock-up period.

We view our staff and investors as our lifeblood. Too many organizations see their investors as a means to a larger AUM (assets under management).

OR: What mistakes have you seen other professionals or companies make in this industry? With that, how does Cache Private Capital work to stay ahead of the curve?

KJ: We see many funds getting way too distracted trying to develop software solutions, others taking on way too much leverage (debt or private equity) and basing those dollars on over-valued product, and others misunderstanding the importance of human relationships and deal flow.

Data is SO powerful, and we should all be using it to spend little to no time on loans we’ll never make and less time on the keepers. And from there, data can provide incredible insight. But! Too many organizations lead with fintech instead of quality, and they completely negate the power of human involvement in a sustainable underwriting process. Fintech may allow any of us to raise boatloads of capital to hire, build more tech, and make loans. But the economics of the loans may not keep up, especially as loans mature and problems require interaction and management. Most of the players that start with tech and make their way to our industry, because there is capital here, will learn how important it is to make good loans. CPC developed its platform by running its company over the shoulders of smart software de-

velopers so the software works the way we need it to.

It addresses the actual pain points we experience every day. CPC knows what it’s like to have a mature portfolio and the burdens associated with foreclosures, so everything we do is centered around keeping our portfolio health in its best condition and preparing for an inevitable correction.

OR: What has been the most important factor in your company’s growth?

KJ: First, we’ve performed year-in and year-out. When you establish a track record of high-yield, senior-secured lending, it always outshines a startup’s model and wins capital. Second, we have learned to create velocity, so we are turning our capital more often, thanks to a relatively new secondary market for private loans that didn’t exist when we started. And finally, although it’s cliché that success comes by surrounding yourself with the right people, and being okay if they’re smarter than you, CPC continues to grow because we are all about alignment. We care about alignment with personnel, investors, vendors, third parties, and within our executive team.

OR: What are the biggest challenges that CPC faces?

KJ: Any non-leveraged fund, albeit there aren’t many of us, is in part beholden to how their borrowers perform to maintain liquidity. With little control on that front outside of good underwriting, we have to keep raising capital all the time. Although we have typically been a shiny object when compared to standard and non-standard investments, sometimes investors are drawn to the allure of a good pitch by a new kid on the block, and we end up competing for capital. But these challenges are what has developed our company and given us breadth of experience that make us the best at what we do.

OR: When did you first get involved with fintech, and how has it impacted your career?

KJ: We developed our platform out of necessity. We

were using an LOS, two or three other services; we had to have storage, and customer relationship management and workflow software. Nothing worked together, and one day I just realized that if we put it all on one platform, I’d get up to HALF of my day back. Development made a major impact on my effectiveness. It’s also improved our ability to know a lot more about a deal and borrower, much more quickly than we used to. I’m also lucky to have a (relatively new) partner with a fintech background, Sean Clark, who founded a major bank back-office and data SaaS company.

OR: Who or what has been your greatest influence in business and why?

KJ: In college, I was doing mortgage loans while becoming a sports broadcaster. I got offered an awesome gig with a worldwide leader (ESPN), but family circumstances kept me from accepting that opportunity. I doubled down in finance and one thing led to another.

Rather than climbing a corporate ladder and traveling for the next 30 years on a traditional salary, these influences led me down a path where I could excel. Raising money and arranging financing for over $200 million

me. I want our funds to perform the best for our investors and our innovation to disrupt norms and make positive impacts throughout the industry.

OR: What is one piece of advice you have learned and carried with you throughout your life?

KJ: Treat people as if they were what they ought to be, and you help them to become what they are capable of becoming. It’s a nice spin on the Golden Rule. It’s really simple but SO powerful. Treat others how you’d like to be treated, but also try to recognize goodness in everyone and bolster their confidence. Too often, people get competitive, or prideful, or busy, and treat people around them poorly.

OR: Have you had to learn any lessons the hard way in your personal or professional experience?

KJ: I wish I could say no, but nearly every underwriting improvement we have made has come from overlooking something or getting taken advantage of. Although we are fortunate to have never lost a dime for our investors, some of the lessons on the way have been painful and burdensome. From the time a borrower colluded with a title attorney to use a modified version of our email address to close a deal based on a fake HUD to the time a borrower was allowed to cash insurance claim payments that named us as additional insured, these experiences could be the content of an interesting book and have helped us avoid even larger issues that may not be so reversible. I have also had to Left/Above: Kellen Jones, President, Cache Private Capital learn how to focus on one task at a time, even if I’ve scheduled a busy day with a lot to accomplish. in a few short years puts you in environments where you see Multitasking is one thing, but getting too scattered can the best of the best in their el- completely sabotage the quality of your work.

ement. You see how they adapt, solve problems, make decisions and stay motivated.

There are of course the “experts” that deserve being observed. I look to leaders like Ron Suber for fintech enlightenment. A myriad of good influences exist in the private lending industry. I’ve also really always enjoyed Robert Reich’s stuff in general and his books have been a major influence on how I view the world.

OR: What motivates you on a day-to-day basis?

KJ: My family, first. Every minute of the day I work, it’s for them. But helping those who can’t help themselves is also a major motivator. A shred of what I do is for personal gratification, and it helps that I love what I do!

I love the idea that our investors, with their various lives and livelihoods, rely in part on what I’m doing today.

They trust us with money they procured either through their own hard work or someone’s good fortune before

OR: If you could have dinner with any celebrity, politician, or business person (dead or alive), who would it be and why?

KJ: Every date night with my wife seems like I’m fulfilling a once-in-a-lifetime dinner experience, but I will pick one from all the categories. Celebrity: Any of The Beatles, probably Paul, because their rock star status has spanned decades and I’d love to hear their stories. Politician: Barack Obama, just to hear his take on the current circus. And business person: Warren Buffett. He has such a good eye for risk and perspective on the place for wealth and capitalism. He is genuine, simple, and would be an awesome dinner date.

CONTACT KELLEN JONES:

kellen@fundingdatabase.com | cacheprivatecapital.com

www.originate.report 17

While change can sometimes be hard, technology advances in the mortgage sector have been good for both consumers and originators, and the technological evolution will continue to benefit both borrowers and lenders in the years ahead.

FEATURE

In a year where the overall mortgage volume is expected to be down compared to last year, the interest in automation and artificial intelligence is growing as companies seek to add efficiencies to improve their competitive position.

“In a year where the overall mortgage volume is expected to be down compared to last year, the interest in automation and artificial intelligence is growing as companies seek to add efficiencies to improve their competitive position.”

The Mortgage Bankers Association expects 2018 originations will reach $1.16 trillion, according to its July updated mortgage finance forecast, down from 2017’s $1.71 trillion.

Purchase originations (one- to four-family units) are expected to rise by nearly 4 percent to $1.15 trillion, but that won’t be enough to offset a forecasted 23 percent decline in refinances to $460 billion. Refinances currently make up 29 percent of the mortgage market, down from 35 percent in 2017, due to a rising-interest-rate environment.

Why Automation Matters

The Future of Lending: Automation & AI

By Robert Greenberg, Patch of Land

W

hen mortgage professionals gather for an industry conference, it’s usually not long before someone jokes (or moans) about how slow the industry moves when it comes to adopting new technology.

Technology, however, is now more than just a topic of conversation. It’s a must-have for mortgage originators, and the industry can thank fintech firms for challenging the status quo and speeding up adoption.

18 Originate Report | August 2018

The National Bureau of Economic Research (NBER) has tracked the transformation toward technology-based lending. The market share of U.S. mortgage lending held by technology-based lenders grew from 2% in 2010 to 8% in 2016. During the same time period, online mortgage lenders saw total loan originations rise to $161 billion, up from $34 billion — an annual growth rate of 30 percent. NBER’s research shows that on average fintech lenders process mortgage applications about 20 percent faster than their traditional counterparts.

The declining mortgage volume and the challenges it represents comes as the nation enters a maturing e-commerce market — one in which consumers have come to expect the immediacy they find in the online retail sector to transfer to the mortgage industry.

Originators have responded to this demand with an improved application experience that includes mobile apps, online applications and e-verification options that reduce the time commitment and paperwork gathering of the past.

While online fintech companies should get significant credit for pushing technology forward for the entire origination industry, mortgage giant Fannie Mae also advanced technology adoption among lenders with the rollout of its Day 1 Certainty initiative in October 2016.

The initiative frees originators from paper-based processes with automated validation of income, assets and employment. The benefits of Day 1 Certainty have been multifold for originators who have adopted it: A faster paperless process, increased accuracy, a better borrower experience, faster closings, the ability to close more loans, and freedom from representations and warranties. Since the initial rollout, Fannie Mae has continued to add technology vendors to their platform.

Day 1 is just one example of multiple technology-related initiatives undertaken by the agencies over recent years.

Several years ago, Fannie Mae and Freddie Mac adopted the Uniform Collateral Data Portal, where lenders electronically submit appraisal reports for mortgages delivered to the agencies. At the time there was much

handwringing about how this technology would affect lenders, but today it has become standard procedure.

Ultimately, technology as a whole should be helping originators grow their businesses while improving efficiencies and containing costs. A McKinsey report refers to automation in the banking sector as a “transformative power” for the industry.

“Many banks are rushing to deploy the latest automation technologies in the hope of delivering the next wave of productivity, cost savings, and improvement in customer experiences,” the report notes. “While the results have been mixed thus far, McKinsey expects that early growing pains will ultimately give way to a transformation of banking, with outsized gains for the institutions that master the new capabilities.”

While McKinsey speaks specifically about banking, the sentiment is certainly transferable to mortgage originators of all types, including alternative lenders and fintechs.

How to Adapt

McKinsey expects a second wave of automation and artificial intelligence to emerge in the next few years, estimating that machines will do 10 to 25 percent of the work across bank functions. This, in turn, will free up employees “to focus on higher-value tasks and projects,” the report says. Capturing this opportunity requires a shift from a tactical to a strategic approach.

“In some cases, they will need to design new processes that are optimized for automated/AI work rather than for people, and couple specialized domain expertise from vendors with in-house capabilities to automate and bolt in a new way of working,” the report said.

prietary in-house technology, outsourced solutions, or

When it comes to artificial intelligence, gathering data and automating the origination process may be the first step, but leveraging the data insights to benefit lenders and borrowers is paramount.

These aren’t questions that can be answered overnight,

Figuring out AI Complexities

Originators will need to figure out how to use the data in a way that drives value. There are many complexities to be considered including how the data is collected, how it is used and, very importantly, how to remain secure and compliant with mortgage regulations.

Some old-school origination shops may need to start with the process by further digitizing their workflow before they can capture significant consumer data for analysis and use.

This is no easy task. Data that is captured isn’t going to be useful unless someone can analyze it and figure out how it can be seamlessly used to add value by improving efficiency, cutting costs, reducing risks and so on.

There aren’t easy answers to the many questions that arise when the conversation turns to technology in origination, and specifically to automation and AI. How much should be automated? Should we rely on pro-

a combination of both? Can we add new solutions to our existing LOS? How will AI take what it has learned

and improve future performance? How will blockchain change today’s business process and improve security?

but they are certainly questions that originators need to be talking about and acting upon with a level of ur-

gency. Whether the conversations begin at an industry event or around a company’s conference room table, it is time to move from talk to action as end users increase

their demand for speed and efficiency in the origination process.

ABOUT THE AUTHOR:

Robert Greenberg is chief marketing officer at Patch of Land. He is responsible for branding, corporate communications, lead generation, marketing automation and managing integrated marketing activities. Prior to Patch of Land, Greenberg led the marketing efforts for B2R Finance, where he helped originate nearly $2 billion in real estate investor loans that led to the industry’s first-ever multi- borrower single-family rental securitization.

CONTACT: rgreenberg@patchofland.com

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your day-to-day lending enterprise. Businesses can feel the burn from more expensive loans just as individuals can. This can lead to squeezed profit margins for companies that choose to borrow in spite of higher rates or stifled short-term growth for companies that would rather wait for cheaper debt (according to www. investopedia.com). Wall Street may cast a negative net over any such companies in either case.

FEATURE

“Private lending already provides a

suite of key advantages to consumers who would rather avoid the big banks, but now there’s a tangible, bottom-linebased reason for home seekers to utilize your services.”

Will Consumers Seek Mortgage Alternatives as Interest Rates Rise?

By Clay Malcolm, New Direction IRA

E

arlier this year, the Federal Reserve raised interest rates by 25 basis points, bringing their benchmark rate to 1.75%-2.00%. It was the second rate hike we’ve seen in 2018, and two more such increases may be on the docket before the New Year with additional activity possible throughout 2019 (according to www.businessinsider.com).

As the central bank of the United States, the Federal Reserve monitors a series of factors throughout the year and generally boosts interest rates to offset inflation in a strong economy. Apart from that, the effect of higher interest rates on the American public can be two-fold: • Mortgages from larger financial firms could become more expensive • Stock prices can dip in unpredictable and undesirable ways We’ll address the second point a bit later. Regarding mortgages, the relationship between the Fed and institutional lenders can create opportunities for private originators who needn’t adhere to market standards to remain competitive. Rate movements like we’ve seen this year tend to trickle through the financial industry; as the Fed charges more for borrowed money, so do the banks that issue debt to businesses and consumers. As such, 0.25% increases can begin to add up for individuals or families who are looking to purchase homes but won’t have the money they need for a while. The longer they

20 Originate Report | August 2018

wait, the more they’ll have to pay for their mortgages if interest rates continue their uptrend.

You can satisfy consumer demand by implementing smaller increases or by keeping your rates where they are. Private lending already provides a suite of key advantages to consumers who would rather avoid the big banks, but now there’s a tangible, bottom-line-based reason for home seekers to utilize your services. Any changes to the interest rates that you offer won’t have to reflect those set forth by the Fed, giving you the flexibility to meet the needs of your consumers and reach new clientele. In addition to avoiding higher monthly payments, your new borrowers can avoid the constrictive hoops that larger banks put them through in qualifying them for their loans.

The specter of future rate increases can be a tool in your marketing belt as well. Buying a home 12 months from now may seem like a short-term initiative, but what if interest rates have increased 0.75%-1% by this time next year? You can provide your borrowers with peace of mind by tempering, postponing, or eliminating interest rate increases at a time when such increases from other firms are widely expected, if not virtually scheduled.

To loop back around to our point about stock prices, higher interest rates from the Fed can affect your longterm finances just as they can create opportunities for

Retirement portfolios that are situated entirely or primarily in publicly traded equities can take a hit in these instances, but what if you could fortify your retirement by originating loans with a self-directed IRA instead?

You can, and it may be easier than you think.

If you have tax-advantaged money in an old 401(k) or another such savings vehicle, you can roll that money into a self-directed retirement plan and originate loans with it. Although you must always keep your retirement money separate from your personal money (i.e. you could not collect payment on behalf of your IRA and simply drop it into your checking account), you’re still the engine behind almost every business activity. You can pursue and qualify potential borrowers and negotiate terms as if you were lending the money in your pocket. Any interest you collect on behalf of your IRA will bear the same tax-deferred or tax-free benefits of your applicable plan, allowing you to capitalize on the rising demand for lending alternatives and mitigate the effects of a nervous stock market on your nest egg.

As rising interest rates create new headaches for borrowers and stock investors alike, you have the opportunity to thrive from both angles by harnessing your origination skills in new ways. Consumers or businesses can come to you for more competitive rates as the banks begin to charge more and you can hedge against Wall Street volatility by incorporating your tried-and-true origination methods into your retirement strategy. By adjusting to our current market conditions, you can set yourself up for success in both the near and long terms regardless of where the stock needle heads next.

ABOUT THE AUTHOR:

Clay Malcolm is Chief Business Development Officer at New Direction IRA, Inc., a provider of self-directed retirement plans that hold alternative investments. He provides preliminary and continuing education to anyone interested in promissory notes, real estate financing, and other loan structures as assets in IRAs, 401(k)s, and

HSAs. CONTACT: c malcolm@ndira.com | 877-742-1270 (Ext.113) | www.newdirectionira.com

You have knowledge. You have ideas.

Let us showcase your voice.

Currently we’re looking for articles showcasing: Business Development • Fintech/Newest Loan Programs • Automation in Today’s Evolving Society • Upcoming Trends & Changes • Marketing & Outreach Essential Tools & Technologies • New Legal Issues and Regulations.

Another idea? We’d love to hear that, too.

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

www.originate.report 21

CITIES TO WATCH

Cities to Watch:

Las Vegas

By Taylor Miranda, Geraci LLP

22 Originate Report | August 2018

L

as Vegas is named the “Entertainment Capital of the World” and rightfully so. It is wellknown around the world as the epicenter of gambling, exquisite dining, shopping and entertainment. The city has numerous casino resorts and entertainment centers on the Las Vegas Strip that bring in hundreds of millions of dollars in profit each year. To no surprise, the Las Vegas gaming industry alone made $814 million in 2017.

The economic growth is driven by the Las Vegas Strip, which houses most of the city’s entertainment facilities.

It is home to some of the largest Fortune 500 companies, mostly resorts that offer a wide variety of adult entertainment. MGM Resorts International, for example, has diversified its offerings to include all types of casino gaming, entertainment by award-winning celebrity guests and entertainers (Shakira, Ozzy Osbourne and George Strait are on the fall schedule), dining at world-class restaurants, and resort lodging in suites with breathtaking views. Las Vegas is a growing leader in the hospitality industry in the United States, which in turn attracts many investors to the Las Vegas Strip.

Must-Visit Locations: The Strip: The Las Vegas Strip has been described as

an adult playground. If you’re driving in from the south, you’ll see the famous “Welcome to Las Vegas” sign, and soon after you are greeted by giant skyscraper hotels, resorts and casinos on every corner; music; clubs; and many entertainers dressed up in costumes. Whether you’re driving or walking down the Strip at night, you will witness the magic of Las Vegas. The buildings are dripped in lights, spotlights dance throughout the sky, and the music has everybody walking to a beat. The live street shows and shops along the way are often entertainment enough.

Taxis and rideshare services are the most commonly used transportation, but pedestrian and street traffic can be extremely congested at peak times. To lighten the load, the city built the Las Vegas Monorail, with seven stops at major hotels and the Las Vegas Convention Center. Trains arrive every 4-8 minutes, and a 15-minute ride will take you the entire route, from the MGM Grand to the SLS Las Vegas (formerly the Sahara Hotel and Casino).

Bellagio Casino and Fountain: The Bellagio Fountain is a must-see sight while walking down the Las Vegas Strip. Every 15-30 minutes, you’ll be greeted by a composed light and water show (similar to that at Disneyland, but the adult version). Inside you will find a beautiful art gallery and flourishing botanical gardens.

The most popular attraction at the Bellagio is Cirque du Soleil; it’s a brilliant show involving incredible artistry and acrobats.

Red Rock Canyon National Conservation Area: For those looking to escape the frenetic energy

of the city for a while, this is the place to go. Just 17 miles from the Las Vegas Strip, the Red Rock Canyon offers hiking and biking trails along the Mojave Desert. Too hot for a hike but still want to enjoy the scenery? You can go on a scooter car tour around the canyon. The convertible style scooter car has no top, allowing you to enjoy the views on the go, while catching a breeze with the top down.

Live Performances

If a live show is on your bucket list, you’re in the right place. Las Vegas has the most diverse entertainment acts in the country in one place. Choose from six Cirque du Soleil shows, magicians such as David Copperfield and Criss Angel, comedians, musical tribute bands, musical theater (Menopause the Musical), and family shows such as Gregory Popovich’s Comedy Pet Theater. Concerts by current long-term residents such as Celine Dion, Lionel Richie and Donny and Marie are a big draw, too. And to ensure that Vegas retains its old charm, it still offers plenty of burlesque and other adult entertainment that the city is famous for.

Dining

Raku is an excellent dinner choice for people who enjoy artistry as much as food. This Japanese restaurant has a tasting menu that allows you to try several of their most delicious dishes before placing your order. Carson Kitchen not only draws large crowds for their gourmet burgers and flatbreads, but also for their rooftop dining and live music. If you are looking for a little fine dining, Andiamo Italian Steakhouse is the place to go. Their menu has classic steak cuts and Italian dishes that are hearty and satisfying. Try their award-winning handmade pasta dishes and homemade Italian bread.

Las Vegas, NV Economy:

• Major industries: tourism, hospitality, gaming • Minimum wage: $8.25 per hour without health benefits • Cost of Living: 3% above the national average

Housing:

• Median Household Income: $63,789 • Median Home Price: $280,000 — 15.7% increase from last year • Median Rent Price: $1,028

Job Market:

• Forbes List: #59 Best Place for Business and Careers • Unemployment: 5.1% • Job growth from 2016: 2.8% • Loan originator average salary: $93,531 (36% above national average)

Nightlife

The nightlife in Las Vegas is very extensive — it is one of the top reasons why people attend the city. It would take you multiple trips to experience even half of what the Strip has to offer. The MGM Resort, as mentioned before, hosts its own nightclub called Hakkasan, which features many DJs and entertainers like Calvin Harris, Steve Aioki and Travis Scott. This is one of the resort’s largest attractions. Las Vegas is also notorious for their daytime pool parties — check out Daylight at Mandalay Bay for an experience you won’t forget! Dance in the pool to headliners like Rick Ross and DJ Duke Dumont.

Attractions

Las Vegas can be characterized as one giant amusement park on steroids, and the colossal roller coasters and other adventures prove it. From The High Roller, a humongous Ferris wheel at the Linq Hotel and Casino, to the Mountain Express roller coaster at New York New York, thrills abound throughout the strip.

At Mandalay Bay, you can dive with sharks in the 1.3 million-gallon Shark Reef Aquarium, or simply stroll through the viewing tunnel and marvel at marine life.

CONTACT TAYLOR MIRANDA:

t.miranda@geracillp.com | (949) 379-2600

www.originate.report 23

UPCOMING EVENTS

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

Contact Ruby@originate.report for more information.

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

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

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

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

All event dates subject to change. Please visit conference websites for agendas and details.

24 Originate Report | August 2018

American Association of Private Lenders’ First

CHARITY

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LOAN HOME

Help Make Dreams Come True

Let Lenders know you found them in Originate Report!

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

Contact our Loan Home director at j.pelache@geracillp.com or (949) 629-3961.

26 Originate Originate Report Report || August August 2018 2018

TYPES OF LOANS

u Br mer idg e Co rpo r Ac at io qu ns/ is i T No tion rusts tes s a / L nd ega Pu De l E rch ve ntit a lop ies s Re ed me ha nts b/ Bla Re nk mo e d Se t Lo eled a co nd ns / Re no Jo va int Mort ted Ve ga Fo ntu ge s rei r es g Ot n Na he t i on r als MA XL oa nCh urc to-Va lue he La s (% nd / Te ) /M m ( A Au Bare ples tom / C / S X Te rm y o Re otive mm nag (yr erc og s) tai u l (S ial e /L s En h ot) ter ops ta / Ga inm Strip s S en Ma t lls Le tatio ) isu ns re H o (G sp olf it C Mi ality our s xe ( H d o es/ Re -use tels) Mar ina sid Pr I o nd e ) Ra ntia per t ustri ies al nc l In v h Se es a estm lf-s nd en t t Re orag Farm Prop s ta e ert s ies u Of rant fic s e

TYPES OF PROPERTIES WE LEND TO

MI NI MU M LO MA AN XI MU $ Co M mm LO e A C o rc i N ns al $

Let lenders know you found them in Originate Report!

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400K 3.5M √

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√

Direct Lender

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

1M

N/A

50K 15M

√

√

√

√

√

√ 80/30 √

√

√

√

√

√

√

Direct Lender

Helvetica Group

100K 10M √

√

√

√

√

√

√

√ 55/30 √

√

√

√

√

√

√

√

CB Real CALBRE 00388229

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

50K

5M

√

√

√

√

√

√

√

√ 75/30 √

www.olympiafin.com Jaronson@olympiafin.com

Pacific Private Money

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

√

√

√

√

√

√

√

√

√

√

√

√

75/2

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

70/3

√

√

√

√

√

√

√

√

√

√

√

√

Direct Lender

150K 5M

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

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

50K

3M

√

√

√

√

√

* CA

√

√

√

√

√

√

70/30

√

√

√

√

√

√

Direct Lender

Patch of Land

√

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

SFR

50K 25M

√

*All 50 States

Direct Lender

Olympia Financial Mortgage Inc.

√

* AZ, CA, NV

Direct Lender

JCAP Private Lending

√

*All 50 States

√

www.fidelityca.com psteigleder@fidelityca.com Peter Steigleder (818) 422-8879

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

√

CA, TX, WA

Credit Union Lender

Fidelity Mortgage Lenders, Inc.

√

* = states lending in

ACC Mortgage

√

* CA

√

√

√

√

√

√

√

√

√

√

√

85/2

√

√

√

√

√

√

√

√

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

Direct Lender

100K 10M

√

Direct Lender

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

√

√

√

√

√

√

√

√

65/5*

√

70/5*

√

√

√

√

√

√

* CA Rev. 6/19/18

Sunset Equity Funding

50K 50M

√

√

Direct Lender

√

√

√

√

√

√

√

√

√

90/2

√

√

2018

www.sunsetequityfunding.com lending@sunsetequitygroup.com Los Angeles, CA 90010

NATIONWIDE EXCEPT ALASKA, SOUTH DAKOTA, NORTH DAKOTA

Look for this Lender’s Ad in this issue of Originate Report www.originate.report www.originate.report27 27

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

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

28 Originate Report | August 2018

Geraci Law Firm | 949.298.8050 | www.geracilawfirm.com