Originate Report - October 2021

THE OFFICIAL MAGAZINE OF GERACI

OCTOBER 2021

Time for a Conversation

INSIDE:

Jcap Private Lending Committed to Service A LENDER INVESTED IN MUTUAL SUCCESS

Building Connections with Arixa Capital A Winning Formula Builders Capital AT THE HEART OF BRIDGE LOANS TITANS

Sharon Koh Chris Hanson AND MORE...

SPECIAL EDITION October 2021 Originate Report 1

2

CONTENTS OCTOBER 2021 COVER STORY 6

Time for a Constructive Conversation

By Charles Peckman, Contributing Writer for Originate Report

FEATURED ARTICLES 12 A Winning Formula:

Industry Insight + Innovative Lending = Builders Capital

By Mark Dewyea, Contributing Writer for Originate Report

6

14 Parkview Financial: A Refreshing Blend of Transparency and Flexibility

By Mark Dewyea, Contributing Writer for Originate Report

22 Success Starts From Within the LBC Capital Model

By Mark Dewyea, Contributing Writer for Originate Report

28 Jcap Private Lending Committed to Service

14

By Mark Dewyea, Contributing Writer for Originate Report

30 Enact Partners: A Lender Invested in Mutual Success

By Mark Dewyea, Contributing Writer for Originate Report

34 Building Connections with Arixa Capital

By Charles Peckman, Contributing Writer for Originate Report

42 At the Heart of Bridge Loans:

A Conversation with Sofia Nadjibi and Mark Hanf

By Charles Peckman, Contributing Writer for Originate Report

18

CONTRIBUTED ARTICLES 38 Understanding Private Lending Vs. Conventional Lending

By Chira Watson, Carlyle Capital

PRIVATE LENDING TITANS

24

18 Sharon Koh, 1839 Asset Management 24 Chris Hanson, Hanson Capital INDUSTRY NEWS 49 RCN Capital Recognized on 2021 Inc. 5000 List

of the Fastest-Growing Private Companies

50 Anchor Loans Becomes First Fix-and-Flip Lender

28

to Originate $10 Billion October 2021 Originate Report 3

YOU’RE

INVITED Join us for the 12th year at the largest national private lender event from the industry’s oldest and largest association. 2021 will bring you 2 days of packed sessions, 60+ exhibitors and 500+ attendees with whom to network and learn.

2021 CONFERENCE ACTIVITIES AAPL Certification Courses • VIP Nightclub Reception Catered Networking Breakfasts • 15+ Sessions & Panels Packed Vendor Hall • Speed Networking Networking Reception • AAPL Official After Party

NOVEMBER 14 - 16, 2021

L A S VE G AS IN-PERSON & VIRTUAL TICKETING AVAILABLE

AAPLCONFERENCE.COM

4

Letter from the

CEO Geraci LLP ANTHONY GERACI a.geraci@geracillp.com

Editor

Welcome to the AAPL Special Edition of Originate Report!

This is a show that many companies look forward to year after year to make new connections, learn from industry titans, and forge new partnerships for future deals. It’s also a time to exchange success stories with your contemporaries in the industry, a prime example

Senior Vice President, Marketing & Media LESLEY BOYD l.boyd@geracillp.com

of which is the employees-first mindset and industry leadership of Constructive Loans.

In this month’s cover story, Time for a Constructive Conversation, Originate Report sat down with Ben Fertig and Alex Offutt of Constructive Loans to discuss their culture of success, providing value

Lead Graphic Designer LYNDA HIGHT l.hight@geracillp.com

for their clients, and their tremendous growth over the past two years despite, or more likely in response to, COVID-19. Focused inward, the management team at Constructive has created an environment to empower their employees, thus allowing them to showcase their individual talents and abilities.

Constructive imbues the phrase:

small but mighty. Prioritizing company efficiency over size, they are

CONTRIBUTORS Chira Watson Charles Peckman Mark Dewyea

dedicated to an industry-specific wholesale lending strategy that streamlines their business. With this streamlined business model, Constructive is able to pivot their focus when necessary and continue to forge lasting strategic partnerships in the space. Read this month’s cover story to learn more about Constructive Loans’ strategic decision to focus inwardly on creating a solid team to build a foundation on

FOUNDING UNDERWRITERS

which to grow the business.

Take a note from Constructive Loans’ book: establish a solid industry reputation as a successful, relationships-forward company and your success story can be the next one we hear about!

You know the adage, if we wanted your opinion, we’d ask for it? Well,

MARK HANF President, Pacific Private Money

at Originate Report, we are asking! Our final issue of 2021 is a Year in Review edition. We want to hear what worked and didn’t work in 2021 for your company and get your thoughts on 2022. Additionally, our 2022 editorial calendar is now available.

ORIGINATE WEBSITE www.originate.report GERACI LAW FIRM www.geracilawfirm.com LIGHTNING DOCS www.lightningdocs.com CONFERENCE WEBSITE www.geracicon.com

Want to be our next cover story? It’s time to #shareyourstory with us.

Contact us to find out how: submissions@originate.report

Until Next Time,

Lesley Lesley Boyd Senior Vice President, Marketing & Media

October 2021 www.originate.report Originate Report 5

COVER STORY

(Left to Right) Ben Fertig; Alex Offutt

Time for a

President Ben Fertig and Managing Director Alex Offutt.

Creating a Culture of Success When thinking about the core elements of a successful organization, Fertig

Conversation

said its always best to prioritize efficiency over sheer size.

“Bigger is not necessarily better when it comes to execution,

By Charles Peckman, Contributing Writer for Originate Report

F

and

we are extremely efficient,” he said.

or a property to stand the test

of experience to diversify a curated

“Efficiency by nature is impossible

of time, it is wise to construct it

selection of products. Paired with

without a great team. From an

from the ground up. The same

increasing

a

employee relations perspective, I

can be said for creating an innovative

crowded space, the group has developed

strive to focus on the empowerment

conduit that provides clients with

an industry-specific wholesale lending

of our employees. We want to

efficient access to capital. The team

strategy that streamlines an otherwise

showcase their ability and talent, and

at Constructive Loans knows this

convoluted process.

that combination works extremely

market

presence

in

and has been working tirelessly to

well in our space."

forge relationships with its partners

To better understand how Constructive

since the group's inception.

Loans creates a culture of success,

Fertig said you have to balance the

provides value for its clients, and

flexibility of your clients’ needs with

The leadership team at Constructive

has grown despite the challenges of

an institutional process; you can’t be

Loans has leveraged its decades

COVID-19, Originate Report spoke with

too rigid.

6

We take pride in developing and mentoring bright, new talent while also drawing upon the background of experienced people from across the space.

(Left to Right) Alex Offutt, Managing Director, Constructive Loans; Ben Fertig, President, Constrcutive Loans

Constructive Loans: Continues on pg. 8

October 2021 Originate Report 7

Constructive Loans: Continued from pg. 7

"Our top priority is the success of our clients, and we look at every process within our walls from their success backward," he said. "This means we look at the shape of our programs, pricing structure, talent acquisition strategy, and so many factors with laser focus. We ensure that we have sound investments in human capital and physical capital, like technology and internal systems. If we empower our employees, they can begin to look at everything through the lens of our success.”

However, when thinking about the industry, Fertig cautioned against using buzzwords to attract new business in lieu of proper investment in talent and a focus on creating a lasting impact in a crowded field.

“I think far too many people are using the word FinTech to describe their business,” he said. “In my opinion, this umbrella of a term is unsuccessfully used to try to shield those companies from having to

produce

operating

results.

Buzzwords don’t replace earnings.”

Offutt also cautioned against the buzzword-heavy

language

that

seems to permeate segments of Silicon Valley, adding that there is no replacement – technological or otherwise – for hard work and dedication to clients.

seriously,” he said. “Real estate, in

was underserved. The smaller and

the past, has had a reputation for

mid-sized lenders often had no

being slow to adapt to changes in

choice but to utilize larger players

the technology landscape. While we invest in the technology that drives us forward, we put equal effort into the people behind that technology who will be servicing clients long after the platform of that moment has become obsolete.”

to gain access to the capital,” he said. “This chain reaction hurts our clients that serve individual real estate investors, who play a vital role in the industry.”

Building trust with our client base is mutually beneficial, Offutt said,

Striking a balance between utilizing the latest technology and investing

and has yielded consistent, positive returns for Constructive. But more important than a dollar figure, or

in long-term relationship building,

the number of loans secured, is the

Fertig advised, can seem daunting if

litany of meaningful relationships

employing the wrong frame of mind.

the group has fostered.

“There are questions that no one

“I’m the first to admit this, but there

has an answer for, and unknowns

are many people who claim to treat

are always going to come up,” Fertig said. “Whether that’s rising interest rates, dynamic real estate prices, and even the types of properties that buyers are interested in. The mindset

that

we’ve

established,

and I think established successfully at Constructive, is one of staying nimble and adapting to change both good and bad.”

partners like family. I truly mean this when I say that Constructive always has the best interest of the client at heart,” he said. “The relationships that we’ve forged have been invaluable, and crafting those connections is one of the reasons I look forward to work every day.”

Pivoting in the Face of Uncertainty Offutt said that there is no better

This sentiment is shared by Offutt,

example of these partnerships being

who added that staying on top of

put to the test than the early days of

emerging trends – and realizing

the COVID-19 pandemic. Faced with

areas of underappreciation – are

a rapidly changing market and ever-

equally essential building blocks in

revolving

shelter-in-place

orders,

the success equation.

both Fertig and Offutt said they were

Providing Value and Building

adapt and overcome.

Partnerships

'amazed' at the team's ability to

"There were moments early on in

What we realized early in the

the pandemic when it seemed like

“Investing in technology and digital

company’s existence is that a large

segments of the market were on a

infrastructure is something we take

area or contingency of the market

downward spiral, but I believe a

8

negative mindset can be detrimental to a person's personal and professional existence,”

Fertig

said.

"Rather

than focus on the negativity of the moment, of course, while keeping public health in mind, it is crucial to frame negative situations through the lens of pivoting.”

This

mindset

manifested

itself

in several ways, beginning with the assurance that clients would continuously be served. Offutt, who has been with Constructive since 2018, added that one element that drew him to the group was its actionAlex Offutt

oriented attitude.

“A team, frankly, is no stronger than the sum of its parts. If we have strong individuals on a team, then it goes without saying that the unit will function exceedingly well,” he said.

“We take pride in developing and mentoring bright, new talent while also drawing upon the background of experienced people from across the space. If there is a segment of the market that seems stifled, then we look for ways to innovate.”

One such area of pivoting revolves around the types of loans funded by Constructive in the past year. Before the pandemic, a wide selection of BPL products was commonplace for the Constructive team; since May 2020, however, Offutt said more than 85 percent of their loans have been long-term DSCR Rental loans.

(Left to Right) Melissa Martorella, Partner, Geraci LLP; Ben Fertig

This

specific

product

has

seen

double-digit growth every month for the past year, he added.

Constructive Loans: Continues on pg. 10

October 2021 Originate Report 9

Constructive Loans: Continued from pg. 9

"The growth that we have seen in the DSCR loan asset class has been remarkable," he said. "Part of the reason, I think, that this area has seen organic growth is because these loans are more efficient to originate.

The extenuating data points are more objective compared to other products that lie in the residential investor market.”

Rental

loans,

local, regional, and national level; in

multi-unit and rental properties. To

addition to ensuring there are boots

Fertig, who weathered the storm

on the ground during every project,

of the 2008-9 financial crisis, this

he said Constructive knows when

shift poses an opportunity through

to employ a hands-on approach –

our client base to connect with a

and when to leave some aspects

new generation of prospective real

of a project to different players in

estate investors.

the equation.

"There are misconceptions about

When thinking about the future of

lending,

misconceptions

that

I

think are beginning to dissolve with

In addition to the shift towards DSCR

these properties, has emphasized

Offutt

said

other changes in the market have gained traction during the COVID-19 pandemic. As most of the country sheltered in place, the increased time at home resulted in many people rethinking their living arrangements.

City dwellers, for instance, began

time. The current generation of real estate investors are more financially literate and have a grasp of the market that would have been more difficult to acquire before social media," he said. "Some companies have underappreciated this, much to their detriment."

Continuing a Pattern of Growth

to recalibrate smaller spaces and

Constructive Loans, Fertig said he is excited to see continued growth in new areas of the country, in addition

to

further

investments

in the tools that will make those expansions successful.

“Growth can be both a simple and deceptively

complicated

process,

but with the team that we’ve got in place, we are making the right moves towards expanding our operations” he said. “2020 put everyone to the test, and as we successfully emerged,

lack of greenery. People in rural

Grappling with the 'invisible hand

settings,

a

of the market,' Fertig admitted, is

change in scenery. Offutt said that no matter the circumstance, it is up to real estate professionals to track

no easy task. Given the breadth and

these changes and focus efforts on

shift in the market is an opportunity

blossoming markets.

for growth.

“When someone makes the choice to

“There’s a reason our clients keep

leave an urban center, or when the time at home reaches a boiling point, we are there,” he said. “You have to understand that with a situation like COVID-19, there is a massive

explored, and with the infrastructure

coming back to us,” Offutt said. “The

that we’ve built at Constructive,

reputation we have built has been

we are in a prime position to stay

earned, and on the same token hasn’t

nimble and reach for those goals

shift in real estate, but there is also

to have the reputation that it's the

conversely,

sought

a fundamental, societal shift in how we choose to live. What we see now, especially with younger buyers who are choosing to rent over buy, is not a trend that will go away soon.”

depth of the Constructive team's experience, he added that every

When thinking about possible growth areas, Offutt said the most exciting opportunity might be just around the corner.

“There are sectors that have yet to be

been built overnight. When we go to conferences or host events, we want gold standard no matter what we

that may seem unattainable to some.

We have that talent integrated into every level of the organization.”

do. The group that everyone wants to emulate. Even though this is a crowded field, we are standing out and continuing to innovate.”

Rising single-family home costs,

These long-standing relationships,

paired with a national shortage of

Fertig added, can be found on the

10

we continue to push forward.”

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

Nationwide Wholesale Lender with Competitive Rates and Industry Leading Turn Times 50 YEARS OF COMBINED EXPERIENCE We have the know-how you need.

At Constructive Loans, we believe there is a better way to invest in real estate — a more valuable, less invasive way where we as a lender provide an easy process, competitive pricing, and expansive programs.

At Constructive, we all come to work every day because we want to build strong, lasting relationships with our clients in order to help them achieve their financial goals. We focus on Fix-and-Flip and Rental Loans, and believe that caring about the success of our clients and their individual deals is what sets us apart.

Constructive’s leadership team draws on decades of experience, across industries, to chart the course for the future of private lending. Our concentration on speed, flexibility, price, and reliability will help you, as an investor, move at a faster and more consistent rate than your competitor.

Constructive Loans gets its name from the Latin origin constructus, meaning “put together the parts in their proper place and order.” This is precisely how we are able to help you thrive: by putting in a proper place all of the parts that make up a successful funding deal.

CONNECT WITH US 1801 S. Meyers Rd. Ste. 10, Oakbrook Terrace, IL 60181 https://www.constructiveloans.com/ October 2021 Originate Report 11

FEATURED ARTICLE

Curt Altig

Robert Hadley

Rob Trent

Chairman & Founder, Builders Capital

Principal, Builders Capital

CEO & Principal, Builders Capital

A WINNING FORMULA

INDUSTRY INSIGHT + INNOVATIVE LENDING = BUILDERS CAPITAL

By Mark Dewyea, Contributing Writer for Originate Report

W

ith a leadership team

allows Builders Capital to cater to

clients from the application phase

that has over a century of

the specific needs of its clientele and

to the final repayment, borrowers

collective

construction

fund exciting projects that otherwise

can manage their projects with

and real estate development experience,

would be impossible to get off

the confidence that they will have

Builders Capital genuinely understands

the ground.

sufficient capital whenever they

the nuances and challenges that its

need it.

borrowers face. They have positioned

Communication Breeds Success

themselves with a customer-centric

Builders

stranger

As a leader in the private money

lending approach to accommodate

to the challenging aspects of the

lending space specializing primarily

borrower needs. Gone are the days

home construction process. Project

in funding residential construction

of lengthy underwriting experiences

timelines are in a constant state of

projects,

that are unfortunately an inherent

flux. Unexpected issues arise at the

provided efficient single- and multi-

part of the conventional lending

most inopportune moments such as

family

process. That’s why Builders Capital

when materials are sold out and must

loans for more than 30,000 housing

underwrites its loans based on the

be back-ordered. That’s why they

projects in markets spanning the

potential value of the underlying

allow on-demand draws, enabling

entire country since 2009. Moreover,

asset instead of arbitrary restrictions

borrowers to pay their vendors

they are showing no signs of slowing

that

banks

when they need to. Furthermore,

down anytime soon. Origination

are forced to adhere to. This dynamic

since there is a dedicated team of

volume is currently on pace to

flexibility is an invaluable asset that

relationship experts that stick with

surpass Builders Capital’s initial

12

government-regulated

Capital

is

no

Builders residential

Capital

has

construction

goal of $1.4 billion in business,

developments to customizable all-in-

innovative, creative solutions when

fueled in large part by the company’s

one construction loans to accommodate

customers need them.

seamless integration of technological

even the most complex and demanding

adaptations to optimize the quality

projects.

of the end-product for each one of its clients.

Thanks to state-of-the-art

technology, borrowers have aroundthe-clock access to their loan details, draw schedules, and more with just the click of a button—a degree of transparency and ease of business that is truly unprecedented in the lending industry.

Builders

Capital

has

whether

you’re

building a single-family home or a

in lending activity since its inception.

multi-unit rental property, Builders

Currently, Builders Capital has $1.4

Capital has a solution for you.

billion in active loans; and with over a billion dollars in new capital available, they are showing no signs of slowing down. It takes something special

to

stand

out

from

the

Loans for Every Need

providers, and that’s exactly what

Builders Capital offers a comprehensive

Builders Capital is. Their committed

selection of residential construction

team of collaborators coordinate

loans to fit virtually any type of

the efficient disbursal of capital

project.

bridge

across the entire country and pride

loans ideally suited for multi-phase

themselves in their ability to craft

short-term

of

facilitated several billions of dollars

exponentially growing crowd of loan

From

Regardless

Builders Capital specializes in this approach to creating communities from scratch and can offer financing that covers all stages of the project from purchase to construction all at once.

For More Information: https://builders-capital.com/

October 2021 Originate Report 13

Parkview Financial

FEATURED ARTICLE

A Refreshing Blend of Transparency and Flexibility

Paul Rahimian

By Mark Dewyea, Contributing Writer for Originate Report

O

CEO, Parkview Financial

ne of the most impactful

that decision easy by providing

opportunity to sit down with Paul

and pivotal initial decisions

a truly client-centered approach

Rahimian for a closer look at what

every real estate investor

to lending.

makes Parkview Financial unique.

While no two loans are exactly

Lending for a Challenging

shortage of lenders in the current

alike,

Market Sector

marketplace, investors need to be

in ground-up and residential real

Founded in 2009 by Paul Rahimian,

cognizant of their long-term financial

estate

portfolios,

CEO, Parkview Financial quickly

goals

strategies

Parkview Financial is a dynamic

grew into one of the most respected

important

lender that has established itself

private construction lenders in the

decision. Choosing a lender whose

as a leader within the industry and

entire country. It’s certainly no small

culture and values align with theirs

garnered a well-deserved reputation

feat given the competitive nature

is essential to ensure long-term

for its proven ability to provide

of the industry, but the results

viability and maintaining a mutually

fast, creative financing solutions

speak for themselves. $2.5 billion in

beneficial

relationship

to borrowers seeking unmatched

total loan closings since the fund’s

over the lifetime of the loan. Paul

leverage coupled with a distinct

inception in July 2015. $1 billion in

Rahimian’s

certainty of execution. We had the

loans paid off with zero losses. Over

must make is selecting a lender.

Although

when

14

and

there

is

certainly

investment

making

this

working mission

is

to

no

make

for

investors

investment

specializing

The team at Parkview Financial, Los Angeles Office

150 loans closed to date. 350 years of combined team experience. Those numbers are mind-boggling in and of themselves, but these impressive metrics simply don’t do a company as

unique

and

trendsetting

as

Parkview Financial the justice that it truly deserves. Rahimian wanted to develop a lending strategy that could

accommodate

ground-up

construction projects that entail constantly

fluctuating

timelines

and budgets—complicating factors

right team. For Rahimian, one of

specific project and the players as

the valuable aspects of Parkview

well as our in-house team.”

Financial handled

is

that

in-house.

everything “The

is

biggest

distinction between Parkview and other lenders is that we lend on ground-up construction projects—

that make it challenging to secure

and we approve, manage, and service

financing from conventional lenders.

all loans in-house,” Rahimian explains.

“This is rare as most other lenders

In order to accomplish this vision,

use some kind of 3rd party vendors,

Rahimian focused on building the

which do not truly understand the

Rahimian is particularly proud of the team environment that he has created at Parkview Financial. Rahimian is a 3rd generation real estate developer and general contractor, who had been involved in numerous successful major development projects across Parkview Financial: Continues on pg. 16

October 2021 Originate Report 15

Parkview Financial: Continued from pg. 15

the Southern California region for over 21 years prior to launching Parkview Financial. This diverse background provides him and his colleagues with a unique insight into transactions and allows them to craft creative, custom-tailored funding

solutions

for

even

the

most complex deals—as Rahimian

Parkview Financial is a dynamic lender who has established itself as a leader within the industry and garnered a well-deserved reputation

puts it: “The construction team

for its proven ability to provide

at Parkview has over 100 years of collective experience in construction and real estate development. Our experience uniquely positions us to see projects through the perspective of the developer, giving us a distinct advantage to lenders fixated on crunching numbers. I truly believe

fast, creative financing solutions to borrowers seeking unmatched leverage coupled with a distinct

having the right people with the right

certainty of execution.

backgrounds all working towards a common goal—namely delivering the best product possible to our clients— is the secret to our success.”

Parkview Financial premises its underwriting protocol on transparency and flexibility—a winning combination that has produced consistent results over the years. “We only underwrite and close deals that make sense,” says Rahimian. “Property valuations and pro formas need to be considered on a one-off basis that looks at the

ideally positioned for success. “We

total

tell our applicants what they need to

momentum hasn’t slowed in 2021

hear, not necessarily what they want

either—with Parkview posting $490

to hear,” says Rahimian. “I believe

million in new loan originations

that degree of transparency is truly

amidst equity growth of 26% in

appreciated—it produces a trusting

the first half of this year alone.

environment conducive to success.”

With Rahimian at the helm, you can

example.

excites and motivates Rahimian and

Despite

the

resultant

economic turbulence associated with

borrower.”

each

the Pandemic, Parkview Financial

loan individually on a case-by-case

set a new record over the course of

basis

and

2020. During a year in which several

prospective

major global corporations posted

providing

honest

feedback

clients

regarding

to the

open

strengths

record

lows,

Parkview

his co-workers: “We are proud to participate as a proactive partner with our borrowers and find joy in seeing their new projects realized.”

Financial

and weaknesses of their proposed

closed $600 million in construction

projects, all of Parkview’s loans are

loans across the country, a grand

16

That

Parkview Financial—something that

inventory, and track record of the

and

transactions.

Take the COVID-19 pandemic for widespread market instability and

evaluating

26

fully expect further growth from

local market, supply and demand, By

of

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

MAKE WAVES AT

APRIL 11-12, 2022 NEWPORT BEACH, CA Interested in attending or sponsoring?

Contact Ruby Keys at r.keys@geracillp.com Balboa Bay Resort 1221 West Coast Hwy. Newport Beach, CA 92663 (949) 379-2600 | www.geracicon.com October 2021 Originate Report 17

PRIVATE LENDING TITANS

PRIVATE LENDING

TITANS Sharon Koh

Co-Founder & CEO, 1839 Asset Management

18

Q: What is your current role and

fell into place like pieces of a jigsaw

what do you do day-to-day?

puzzle. Being an entrepreneur now,

1839 Asset Management runs a

I am finally applying all my skills

very tight operation, which means

and experiences in one job.

that I wear many hats.

However,

maintaining the relationships with

Q: Is there anything that you wish

our capital partners and originators

you could go back and tell yourself

are at the top on my list. Given that

at the beginning of your career?

in a fixed-income strategy, the key

Be bold and speak up! I moved to the

to maintaining a great return for our capital partners is to control the downside risks.

I have therefore

chosen to personally manage nonperforming loans.

Sharon Koh

Co-Founder & CEO 1839 Asset Management Q: Why did you choose Private Lending?

I have spent my career in a broad range of finance functions - ranging from corporate finance, to wind energy project finance, to corporate

Q: What excites you about your role today?

Ask me again tomorrow… [LOL]. The private lending space has changed so quickly since 2018, there’s certainly no lack of “excitement”!

I have been

for years – it was only when I started to speak up that I realized that I have the power to change the outcome.

Q: Who is someone that has had a significant effect on your career One of my managers in corporate

you faced adversity or had

turnarounds

struggles early on in your career?

kindness and honesty is the best

Where did it all begin? How did

policy when it comes to making

you into the leader you are today?

job was to “organize the chaos”.

I have had an eclectic career path that

When

Management

has made upward mobility within

was awarded a sizable investment

a standard corporate environment

mandate in the Spring of 2017, I saw

more like a jungle gym than a

the opportunity to grow the firm as a

straight-up ladder (borrowing the

professional organization that would

phrase from Sheryl Sandberg’s book).

bridge the gap between a disparate/

I have spent the last 20+ years of

chaotic

space

my career mostly in finance-related

and a formal/regulated financial

functions and eventually moved into

institution.

When I joined this

management, overseeing functions

industry in early 2017, the majority

that I had much to learn about – from

of the originators and investors did

Human Resources, to Technology, to

not have structured underwriting,

Manufacturing Reporting.

construction draw, and operational

stepped into my current role, I felt

processes.

like all my past disparate experiences

lending

cultural differences.

Q: Can you explain a time where

common thread throughout every

private

I felt somewhat intimidated by the

and why?

these experiences mold and shape

Asset

I was in my 20’s. In the early years,

passed up on raises and opportunities

turnarounds. No matter the role, the

1839

United States from Singapore when

When I

and

showed

communicating

unpleasant decisions.

me

that

difficult/ Not only has

this practice served me well for my entire career, but it has also become part of our corporate culture at 1839 Asset Management. When my team is confronted with a difficult lending decision, we ask ourselves – “what is the intellectually honest answer to our conundrum”.

The

answer is often surprisingly obvious.

Acting

on

our

decisions

kindly

and fairly has rewarded us with strong relationships with our loan originating partners and borrowers.

Sharon Koh: Continues on pg. 20

October 2021 Originate Report 19

various

in the past as this space continues

publications and going to conferences

to draw the interest of institutional

are both extremely helpful because

investors. This trend has left a void

data.

Sharon Koh: Continued from pg. 19

Q: What has been your favorite aspect of being in private lending over the years?

Being a part of the transformation of dilapidated homes into great homes that will be enjoyed by families for years. In some geographies, we have even been a part of transforming neighborhoods!

Secondly,

reading

it gets you out of your comfort zone and creates exposure to what is happening outside of your day-today area of interest.

your job? Least?

Most - Working with new originators and brokers and watching their

aid you in your role to be most I am a huge fan of the Bullet Journal method or BuJo, as it is known by users of the method. My BuJo is a place where I can park both shortterm tasks as well as longer-term

We truly believe

projects that I plan to work on.

that private lending is a very local

Not only does it help me to stay

business, and we count on local

focused, but it is also a great stress-

grow

alongside ours.

and

originators and brokers to be our onthe-ground partners.

brokers, and borrowers who are motivated

more

by

management tool. Once a thought, an idea, or a task makes it onto my

Least – Parting ways with originators, short-term

economics than building sustainable long-term partnerships.

BuJo, I know it will get prioritized and completed.

and why?

underwriting

to

structure

deals that otherwise don’t fit the generic credit boxes of today.

Q: What advice would you give to someone who has just started out in private lending?

There is a lot of money chasing after limited opportunities in this space. Don’t lose sight of the risks, especially in the current market of rapidly escalating property prices.

Form your own investment thesis. Go back to the thesis when you’re unsure whether to say “yes” or “no” to a deal.

Be focused on building a sustainable and sound reputational business.

Q: Has your role changed significantly to address the

Q: What do you believe to be the

current environment?

Q: Is time or money more valuable

We are increasingly forced to balance sense

Q: What tools do you use to

develop

businesses

and good investment opportunities. investment discipline and common-

efficient, organized, and focused?

Q: What do you enjoy most about

in the market for qualified borrowers

best type of real estate investment

With the relative ease of access

opportunity available today

to

and why?

warehouse

lines

of

credit

and cheap capital, building and

Lower to middle income housing in

retaining relationships with great

geographic regions that are supported

loan originators has become more

by strong job and population growth.

gets older.

challenging. To counter this trend,

There is a persistent structural

Q: How do you make sure your

tweaking our operations to make sure

The

only

true

limited

resource

everyone has is time, and this becomes more pronounced as one

company stays ahead in this

I am ultra-focused on constantly that we’re operationally efficient and

industry?

easy to work with. We believe that

First of all, by listening, and I mean

our originators’ reputations are our

really listening, to all parties who

reputation. In fact, throughout the

are in the line of fire. That means

initial months of the pandemic, we

borrowers, brokers, and contractors

continued to honor our table funding

as well as the people on the capital

and loan purchase commitments.

side. All of them are engaged in a continuous balancing act in real

Standard mortgages in the private

time. To dismiss their concerns and

lending space are becoming more

observations is to dismiss primary

homogeneous than they have been

20

shortage in lower to middle income housing, in part due to the economic incentives that reward builders more to build higher-end homes than to build 1800 square feet workforce housing. The strong demand in this lower to median segment supports a strong liquidity for both sellers as well as landlords.

For More Information: skoh@1839am.com (646) 350 3581

October 2021 Originate Report 21

SUCCESS

FEATURED ARTICLE

STARTS FROM WITHIN

LBC Capital Partners

THE LBC CAPITAL MODEL

By Mark Dewyea, Contributing Writer for Originate Report

C

onsistently maintaining and

Boris to chat about his approach to

new ventures. “The team-oriented

building a successful business

lending and what makes LBC Capital

environment and the people we have

over the course of nearly

such a unique organization.

are what make LBC Capital unique.”

two decades is impressive. Doing

Boris explains. “I started out with

so with the same funding partners

Nurturing In-House Talent

both of my original partners, and we

still together and the majority of its

A

still work as a team on a daily basis.”

original employees still on the payroll

that nearly 21% of millennials—

is even more so. That’s exactly what

the largest contingent of the U.S.

Promoting

Boris Dorfman, (Fund Manager and

workforce—have switched jobs in

LBC Capital the intrinsic value of

One of the Founders) of LBC Capital,

the past year alone. LBC Capital is

experience.

has accomplished by focusing on

certainly going against that trend—

learned the ropes and are able to

fostering quality relationships and

opting

from

offer their informed perspectives

nurturing in-house talent. We had

within and giving its employees

and market insights to customers—

the opportunity to catch up with

opportunities to advance or pursue

resulting in an optimal experience

22

recent

to

Gallup

nurture

poll

indicated

talent

from Its

within employees

gives have

PROMOTING FROM WITHIN GIVES LBC CAPITAL THE INTRINSIC VALUE OF EXPERIENCE. for all parties involved in each and

all vying to tap into capital streams

every transaction. “Our customers

to fund their objectives. “Lending

truly enjoy working with us,” says

is very much a relationship-based

Boris. “They immediately recognize

profession. I think the best way

that our staff knows what they are

to describe my approach is very

talking about and are able to trust

much premised on common sense

them to handle their finances.”

underwriting,” Boris says. “A lot of

Boris Dorfman

the time it is not so much about the

President & Broker of Record, LBC Capital

Flexibility + Independence = LBC

underlying deal. Of course it has to

Capital

be viable, but what I am truly focused any

on is who the borrower or borrowers

other, is perpetually evolving. New

are as a person—working with an

trends, techniques and practices

outstanding team who shares the

are always being implemented or

same values and vision as we do here

phased out. Customer preferences

at LBC Capital significantly enhances

fluctuate based on market dynamics

the chances of success.”

The

lending

industry,

like

Constant Improvement

both

There is a notable increase in the

flexibility—

of

characteristics that LBC Capital has

amount

in droves.

involved in the modern lending

institutional

money

industry—a trend that has functioned That didn’t happen by accident

to increase the competition for

either—Boris attributes LBC Capital’s

business. For LBC Capital, standing

resilience to change and ability

out

to adapt to constantly changing

intentional and regular refinement

business demands to its unique

of their craft. “Our employees are

structure: “We are not layered by

always attending events, presenting

restrictive institutional guidelines.

on

We have the flexibility to extend to

experiencing in,” notes Boris.

from

topics

the

they

crowd

have

better way to do it than to go out there and interact in person?”

There are some aspects of businesses on—one of which is consistency.

such a fluid environment requires and

knows what they are doing—what

that you simply can’t put a price tag

and economic stimuli. Thriving in intuition

want to partner with a company that

involves

years

of

“When COVID-19 hit we had our best month financially,” says Boris. “We have our own funds in-house and are not dependent on the secondary market like traditional banks.” This ability to produce results regardless of external factors coupled with a

customer-oriented

emphasizing

approach

communication

and

transparency is a proven formula for success—one that LBC Capital plans to continue to implement.

cover the right deal.”

“Learning, Speaking and Teaching at But just how do you know what the

these conferences not only makes our

‘right’ deal is? There is a plethora of

workers more knowledgeable, but it

aspiring investors and entrepreneurs

also builds relationships. Borrowers

For More Information: https://lbccapital.com/

October 2021 Originate Report 23

PRIVATE LENDING TITANS

PRIVATE LENDING

TITANS Chris Hanson Founder, Hanson Capital

24

very young career, any bad decision would have been detrimental. That experience, although stressful, was exciting and led to taking a job being a bidder at the foreclosure auctions. It became clear quickly there was real opportunity to expand the bidding business by lending clients the money they needed to purchase their properties. Through leverage, they were able to buy more property, increasing our bid fees.

Out of this realization, our lending business was born. Starting at the bottom and investing everything I had has certainly given me a deep appreciation for what we’ve built and has shifted my focus toward our

Chris Hanson Founder Hanson Capital

long-term vision.

Q: Is there anything that you wish you could go back and tell yourself at the beginning of your career?

Q: Why did you choose to enter

Q: What excites you about your

Listen twice as much as you speak.

into this industry?

role today?

I am still pleasantly surprised to be

From a young age, I loved Monopoly

I love that my role is dynamic and

learning new things every day and

and now I get to play with real

constantly changing. Our success

properties.

in capitalizing on the opportunities and challenges each new day brings

the best lessons come when I am actively listening.

Q: Who is someone that has had a

Q: What is your current role and

has us on a path toward becoming a

what do you do day-to-day?

billion dollar enterprise.

significant effect on your career

mostly on the growth and path

Q: Can you explain a time where

My daughter, Madison. In the Fall

of our company. Working on the

you faced adversity or had

development of the capital side of

struggles early on in your career?

our business, I’m frequently exposed

Where did it all begin? How did

to some of our industry’s smartest

these experiences mold and shape

financial minds. Insight into what

you into the leader you are today?

they are doing and seeing is exciting

My first real experience in the

as

continued

industry was buying my first flip at

validation that stems from their

an auction with a cash advance on

interest in our company's path.

my credit card. At that time in my

Today, I'm fortunate to be focused

well

the

ongoing

and why? of 2018, I received a phone call informing me that my then 4-yearold daughter was being rushed to Phoenix Children's Hospital as a result of a persistent high fever that had our pediatrician concerned. She was diagnosed shortly thereafter with Acute Myeloid Leukemia, a rare Chris Hanson: Continues on pg. 26

October 2021 Originate Report 25

Chris Hanson: Continued from pg. 25

form of cancer affecting the blood cells. This would be the beginning of a nearly year-long hospital stay while my little girl fought for her life. Thankfully, after a long battle, she was released from the hospital but the impact of those moments have given me such perspective. We know life is precious, but moments like that change everything. For me, that experience has fueled my passion for creating a legacy, not just for my family but for our clients as well. Since that realization, Hanson Capital has grown to facilitate both short and long-term investments for as many individuals as we can to help build their own legacy, too.

Q: What has been your favorite aspect of being in private lending over the years?

Being on both the sponsor side and the debt side of transactions over

the years has granted me a better

Q: Has your role changed

understanding and perspective for

significantly to address the

each side of the table. In many ways,

current environment?

this understanding has made me

Our business exists to take advantage

more effective on both sides.

of opportunities which I believe shift every 18 - 24 months. With

Q: What do you enjoy most about

that mindset and experience, we

your job? Least?

have stayed dynamic through these

I get the most fulfillment from

challenging times and have been

helping our clients down their path

able to adapt efficiently.

of achieving financial freedom and success. Alternatively, it can be very

Q: What advice would you give to

frustrating when I am unable to

someone who has just started out

help clients that aren’t on the path

in private lending?

they want.

Focus on the journey and embrace the difficult times instead of being

Q: Is time or money more valuable

so focused on the destination. The

and why?

other thing that has been impactful

My take on this one is simple. It’s

for me has been shifting focus

time; you can’t buy it.

towards long-term outcomes instead of short-term results. Everything we

Q: How do you make sure your company stays ahead in this industry?

I believe in having the right people in the right seats. Our organization has become a team of opportunistic people who are all experts in different areas of our industry. Having experts in all

Listen twice as much as you speak. I am still pleasantly surprised to be learning new things every day and the best lessons come when I am actively listening.

26

areas of our business whether it be in lending, development, multifamily, or construction, all at the same table working as a team on all of our projects, has allowed us to pivot swiftly and capitalize on inefficiencies and opportunities in the market.

Q: What tools do you use to aid you in your role to be most efficient, organized, and focused?

Fitness, good sleep, and a mental tool from Sun Tzu.

do today is guided by a long-term vision. When there is a choice to make, I am surprised how frequently the decision becomes clearer with the long-term goal in mind.

Q: What do you believe to be the best type of real estate investment opportunity available today and why?

For me, it’s infill, value-add industrial because the risk to reward profile is

completely

unmatched.

This

investment balanced with money placed in debt through our REIT structure for cash flow, liquidity, and diversification is my favorite blend today.

For More Information: https://hansoncapitalgroup.com/

Reliable. High-Quality.

Efficient. Flexible.

We’ve developed a personalized and streamlined online interface that empowers clients to harness best-in-class technology to prepare attorney-grade loan documents. In a marketplace riddled with smaller loan transactions that cannot accommodate full-service legal fees, Lightning Docs is your go-to instant loan document software.

WHAT WE OFFER Easily Customizable for Client Needs Easy to Access and Copy Old Files

Artificial Intelligence Meets Custom Loan Documents

Prepares SFR, Multi-Family, and Commercial Real Estate Loan Docs

Prices Starting as Low as $200 Per Loan

Creates Construction, Rental, Bridge, Fix and Flip, Perm and Mini Perm Loans, and Many Other Product Types

No Upfront Costs and No Contract Period

ARM, Interest-Only, Partial Amortization, and All Other Types of Amortization

No Re-Draw Fees Log on from Your Desktop, Laptop, or Mobile Device Documents Available in All 50 States

90 Discovery Irvine, CA 92618 | (949) 379-2600 | https://lightningdocs.com/ October 2021 Originate Report 27

FEATURED ARTICLE (Left to Right) Aaron Siefker, Vice President Lending, Jcap; Bob Eakin, CEO, Jcap

PRIVATE LENDING Committed to Service

By Mark Dewyea, Contributing Writer for Originate Report

O

recently

at a truly client-centered company

Serve.” This simple, yet powerful,

had the pleasure of sitting

that’s fully committed to delivering

overarching operating philosophy

down with Bob Eakin, CEO

innovative and efficient financial

underscores Jcap’s lending approach.

at Jcap Financial Group, to get a

solutions to each and every one of

behind-the-scenes look at the origin

their clients.

riginate

Report

“Helping people with monumental financial decisions in a context where no two situations are ever the

story of Jcap Private Lending as well

same is the challenge that keeps me

as ask him a few questions about the

Prioritizing Customer Service

state of the current lending industry.

Corporate

He highlighted some key factors that

correctly—can be quite indicative

have contributed to Jcap’s success in

of an organization’s culture and

addition to some exciting plans for

mindset. Jcap definitely got it right

that Eakin has been in the business

the future. Read on for a closer look

with their slogan: “We Care & We

for more than 30 years.

28

mottos—when

done

going,” says Eakin. “To this day, I love how this profession involves problem solving and caring for people.” That’s saying something when you consider

That unique service-based mindset

weekly at local churches. “We are

philosophy

is what initially got Eakin hooked

all citizens of the world,” says Eakin.

transparency and honesty according

on pursuing a career in the lending

“Helping people succeed—regardless

to Eakin: “When clients come to us,

industry as a junior in college. After

of the context whether it be financial

the main question we have is: Are

completing a summer internship

or otherwise—is what motivates me

they going to make money?” That

with a fellow alumnus, he was driven

the most.”

question is misleadingly simplistic,

necessitates

complete

as anyone familiar with the real

to pursue a career in a field where he could use his understanding of

Transparency + Common Sense =

estate process knows that there are a

the mortgage and loan processes

Successful Lending Outcomes

multitude of variables—some known,

to assist entrepreneurs, investors,

At the end of the day, Jcap is primarily

some unforeseen—that always seem

and homeowners alike in meeting

concerned with mutual success—

to arise in every transaction. “When

their financial goals—from the most

when

you talk about budgets, we ensure

complex real estate developments to

their goals, everyone wins. “When

there’s

straightforward refinances for clients

a client comes to us with a deal, we

estate, there’s always going to be

who need fast access to capital.

want them to leave with a profit,”

some extra expense,” notes Eakin.

they’re

clients

accomplish

explains Eakin. “We want them to

a

contingency—it’s

real

Adaptation is Key

The commitment to helping others

be excited, to go in strong, to finish

extends

day-to-day

quickly and ahead of schedule so

business at Jcap, where Eakin has

they leave making as much money

instilled a philanthropic corporate

as possible.”

of success in every industry, and it’s

with several non-profit organizations

To that end, Jcap adheres to a

to accomplish with Jcap. A perfect

over the span of over 25 years to

common-sense

enhance the lives of people around

to evaluating and funding deals

the world—including bringing sight

with a special emphasis on speed,

to the blind in Vietnam, a medical

simplicity

mission to Peru and volunteering

borrowers

beyond

the

Adjusting to new trends and market dynamics is an integral component something that Eakin fully expects

culture. The lender has partnered

and and

driven

safety

approach

for

both

investors.

This

example

is

events

the

unprecedented

associated

COVID-19

pandemic.

with “I

the believe

that the virtual component of the pandemic necessitated an emphasis on efficiency,” says Eakin. “While nothing

will

replace

in-person

interactions, the virtual aspect of meeting with clients and creating innovative technological solutions to facilitate deals remotely has been invaluable and something that we will continue to refine and perfect to deliver the best possible experience for our clients.”

Bob Eakin

For More Information: https://jcap.net/

October 2021 Originate Report 29

FEATURED ARTICLE

Enact Partners

O

riginate

Report

had

the

pleasure of speaking with Michael Schumacher, President

of Enact Partners, to discuss the origins and future of his company, his experience in the lending industry, and lessons learned along the way. As former VP for a publicly traded REIT, Chairman of the Carlsbad Planning Commission,

and

City

Council

member prior to launching Enact Partners, Michael brings a unique perspective to the lending sector— one that has engendered a corporate

A LENDER INVESTED IN MUTUAL SUCCESS

culture premised on the collective

By Mark Dewyea, Contributing Writer for Originate Report

Partners are fully committed to a

goal of delivering the best customer experience possible. Whether that means delivering consistent returns or crafting creative financing solutions, Michael and his colleagues at Enact client-centered approach to lending.

EXPERIENCE “Experience is the teacher of all things.”

–Julius Caesar The Enact Partners story began when

Michael

Schumacher,

the

current Enact Partners President, decided to utilize his vast experience in land development to invest some of his assets in the real estate investment space. His initial success

(Left to Right) Chris Meinhardt, Senior Underwriter at Enact Partners; Mavis Anguiano, Office Administrator at Enact Partners; Michael Schumacher, President at Enact Partners

30

(Left to Right) Michael Schumacher; Mavis Anguiano; Lisa Wheland, Executive Assistant at Enact Partners

(Left to Right) Chris Meinhardt; Kevin Kim, Esq., Partner at Geraci LLP; Michael Schumacher

led to a few business contacts

intangible predicator to a successful

while saving substantial time and

joining him in the venture. As their

investment—and Enact Partners has

money along the way.

portfolio and investor pool grew,

it in droves. With over 50 years of

so did their collective experience.

combined experience in land use and

A perfect real-world example of

“Having the right people is the most

real estate development, the Enact

implementing this knowledge played

valuable commodity a company can

team has the unique ability to unpack

out in a recent project. Costly

have,” explains Schumacher. “Our

the most complex of real estate

team has the insight to function not

transactions. The experts at Enact

only as lenders but as consultants,

Partners have worked in both the

advising clients on issues they may

public and private sectors, equipping

have initially overlooked in order to

them with invaluable insight into the

optimize future returns.”

land use approval process that they are in turn able to use to help their

Experience in the lending industry is

clients navigate the highly nuanced

inarguably the single most essential

political and permitting timelines

permitting fees from local authorities put a client way over budget. This raised a red flag for Schumacher, who knew from his time working in the public sector that the excessive administrative costs were suspect. “I realized something was off based on my time in the development industry,” Enact Partners: Continues on pg. 32

October 2021 Originate Report 31

Enact Partners: Continued from pg. 31

he recalls. “I flagged the issue and ran it past our land-use consultant.

Turns out the client was over-paying for the permit to the tune of several hundreds of thousands of dollars. We helped the borrower negotiate with the local permitting authorities and got the project back on track.”

The

Enact

crafting

Team

specializes

customized

solutions

specifically

in

funding tailored

to

meet all its respective borrowers’ needs—all in a fraction of the

Enact Partners joined Kevin Kim for a podcast recording for an upcoming episode

time it takes conventional banks to

complete

their

of Lender Lounge.

unnecessarily

long, tedious underwriting process.

and expenditures is a hallmark of

prevalence of institutional Wall Street

Whether it’s office, industrial, retail,

their lending strategy. And despite

money continues to grow in our

historic

adaptive

their numerous successes, the Enact

industry, but we all have limitations

reuse, environmental mitigation, or

team has the humility to admit

and

that even after all their years of

compared to main street investors

industry experience, they still learn

like us, institutional money is more

something new on every loan, and

influenced

use those takeaways to inform and

interest rate fluctuations and geo-

adjust their approach to deliver

politics. This can create opportunities

the optimal customer experience,

for lenders like Enact.” This was

something to which Schumacher

perfectly exemplified during the

attributes a large degree of Enact's

pandemic. “We saw a tremendous

success. “Our team is in the practice

spike in loan requests during the

of inspecting and reflecting after

height of COVID in 2020 and even into

successes and failures. Then we

2021,” says Schumacher. “Many of

update

those calls came from borrowers and

rehabilitation,

residential

development

projects,

the experts at Enact have proven they have the requisite insight and knowledge

to

successfully

fund

it. “Our background gives us the distinct edge over our competitors to bring creative financing solutions to a diverse range of sophisticated real estate deals,” says Schumacher.

“We can anticipate potential issues before they arise and craft our lending strategy to accommodate multi-phased projects that require

our

practices

based

on

they’re

no

by

exception.

market

As

volatility,

brokers that lost their institutional

those learnings.”

funding sources.”

some out-of-the-box thinking.”

Enact Partners is a direct lender FLEXIBILITY

comprised of ‘main street’ investors—

COMMITMENT

“The measure of intelligence is

meaning

dependent

“Do what you do so well that they

the ability to change.”

on institutional money like Wall

will want to see it again and bring

–Albert Einstein

Street

structure

their friends.”

grants Enact a significant degree of

—Walt Disney

they’re entities.

not This

Enact Partners’ proven capability

flexibility and agility when it comes

to seamlessly adapt financing to

to

disbursing

The motto at Enact Partners is: “Let’s

accommodate fluctuating timelines

loans. Schumacher explains, “The

build something together,” with a

32

underwriting

and

strong emphasis on that final word

fully involved in every transaction,

capital preservation, with the goal

together. Their focus is to ensure

committing fully to give their clients

of delivering investors a reasonable

that every single action they take

the guidance and tools they need

risk-adjusted return. The Fund offers

ultimately has a positive impact on

to evaluate and compare all their

accredited investors the opportunity

their clients’ P&L and Balance sheets.

options and make more discerning

to invest in loans secured by real

That’s why the lender conducts

real estate investment moves. This

estate without the responsibility and

a thorough analysis into existing

client-centered approach breeds long-

stress of managing real estate assets.

market

lasting relationships. “The majority

Loans are diversified in terms of

of our clients are repeat customers,”

asset class and geography. Returns

says Schumacher. “They do most of

are paid monthly, and they are non-

our advertising for us. Once their

correlated to the stock market.

conditions,

limitations,

restrictions, and levers, to include taxes, cash flow, lease structure, legal formation, debt, and time frames. Details matter in the lending space, and Enact’s team ensures that every aspect of their clients’ project— no matter how miniscule—will not be overlooked.

“We don’t make

loans on properties we wouldn’t be comfortable taking back ourselves,” explains Schumacher. “Oftentimes, we’ll catch an issue that a client didn’t consider. We are usually able to address it together and then we’ll move on with the process better

business contacts hear about their experience, they want to learn more about what Enact has to offer.”

AMBITION “Intelligence without ambition is a bird without wings.”

—Salvador Dali Enact is more than just a lender.

They have also built the EP Guardian

positioned for success than we

Fund, a private mortgage fund that

were initially.”

provides business purpose loans that are secured by commercial real estate,

Mutual success is the end state for

non-owner occupied residential, land,

each deal that Enact underwrites.

and similar investment properties.

The financial experts at Enact are

The Fund’s overarching objective is

On the lending side of the house, Enact

Partners

has

garnered

a

reputation as a premier land and construction lender—and rightfully so given its demonstrated success in this niche of the market. But potential clients would be remiss to think that this is the full extent of Enact’s capabilities. The lender is also active in the office, industrial, retail, and residential sectors as well and has just as much experience and insight when it comes to producing results for its borrowers in these markets.

What’s more, Enact Partners is also currently embarking on an initiative to expand its offerings in ID, OR, WA, WY UT and CO in order to bring

Experience in the lending industry is

its dynamic services to a larger geographic base.

inarguably the single most essential

From humble beginnings to lending

intangible predicator to a successful

thing is clear: the future is bright for

millions of dollars annually, one Enact Partners.

investment—and Enact Partners has it in droves.

For More Information: https://enactpartners.com/

October 2021 Originate Report 33

FEATURED ARTICLE

Building Connections with

ARIXA CAPITAL

By Charles Peckman, Contributing Writer for Originate Report

Arixa Capital Management Team

34

A

rixa Capital, one of the West Coast’s premier private real estate

lenders,

provides

small balance loan solutions to lower-middle market residential and commercial investors and developers.

The group was established in 2006 Arixa Capital Team

and is led by an experienced team of

professionals

who

together

average over 50 years of relevant experience. Since Arixa’s founding, the market has seen incredible highs and seemingly insurmountable lows.

Originate Report sat down with

problems that have an equal number

current shortage of housing supply,

of solutions. I think that one virtue I

but also the desire on the part of

hold dear, and that I see in the team

borrowers to vary and diversify

we have in place at Arixa, is that

their portfolios.”

we never sway from championing

Managing Director Greg Hebner to

our

projects

better understand these shifts and

In addition to overseeing the process

through to completion in the best

the firm’s ground-up construction

‘from scratch,’ Hebner said many

way possible.”

clients seek ground-up construction

clients

and

seeing

lending process.

deals because of the flexibility they One way Arixa has stayed the course

In his capacity as Managing Director

of this partnership with clients,

and Portfolio Manager at Arixa,

Hebner said, is by building (no pun

Hebner said he is laser-focused on

intended) the group’s ground-up

investment strategy, origination, and

construction lending process. On

operations of the firm’s vertically

the heels of a pandemic, which the

integrated lending platform. From

world has not seen in over a century,

an early age, he added, deal-seeking

he added it is paramount to remain

has been a part of his DNA – an

at the forefront of trends in lending.

attribute that extends to the entire Arixa team.

“I think one of the biggest changes we have seen over the past few years

“I think one of the attributes that

is that clients who may have never

drew me to real estate and lending

thought of themselves as ‘builders’

to begin with was the varied nature

are becoming more involved with

of the work,” he said. “Every day, I

that side of real estate,” he said.

wake up and am faced with multiple

“That shift is due, of course, to the

offer, not to mention the premium that new projects are given in today’s tight housing market.

“When thinking about our lending process, what we’re trying to do is stay in a safe place with the loan relative to the borrower’s equity and the value of the property from the very beginning of a project through completion. What we strive for is a well thought out deal structure that ensures proceeds are available to the borrower; and most importantly, that borrowers have the expertise Arixa Capital: Continues on pg. 36

October 2021 Originate Report 35

Arixa Capital: Continued from pg. 35

and capital needed to execute,” he said.

Speaking to this expertise component, Hebner said it is essential to keep in mind that many facets of real estate fall firmly in the ‘walk before you run’ category. Partnering with an experienced lender, he added, can

lay

the

groundwork

for

a

successful relationship.

“I never want to make it sound like we’re

discouraging

people

from

entering the space,” he said. “But the fact of the matter is that we’ve seen it all before; we know the red flags to look out for, and we also know the elements that make a deal successful.

Some companies may use words like mentoring as filler, but we take that seriously.”

Hebner said he learned early in his career to remain involved throughout a ground-up project to avoid costly mistakes.

With

the

advent

of

technologically focused tools for developers, he added, borrowers and lenders can have a more holistic view of a project at any stage.

Greg Hebner Managing Director, Arixa Captial

In the wake of the 2008-9 financial

“What we are trying to do, and have

structures and ensuring that we

crisis, Arixa started its first fund

been successful in establishing so far,

focus on each client’s success and

dedicated to making small-balance,

is a level of humanity and relationship

making them feel as if they’re the

short-maturity real estate loans to

building that I think you’ll be hard-

developers who purchased homes

pressed to find elsewhere in our

from banks and foreclosure sales;

industry,” he said. “I’ll be the first

Hebner said this focus – on capital

to admit that there are lots of people

preservation and mitigating risk

out there who do what we do, so

in every investment – is central to

we’re breaking through a crowded

Arixa’s identity.

space by uniquely approaching deal

36

only person we are working with in every interaction with us.”

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

October 2021 Originate Report 37

CONTRIBUTED ARTICLE

UNDERSTANDING PRIVATE LENDING VS. CONVENTIONAL LENDING

By Chira Watson, Carlyle Capital

R

eal estate investors have a myriad of financing options to leverage alongside their

hard-earned cash when investing in properties.

This article will evaluate two of the primary borrowing options that real estate investors consider, whether it be conventional loans, or private (hard money) loans – specifically for those investors who purchase and improve residential and multifamily properties for an eventual sale (fix and flip) or converting into a rental property upon completion.

Again, there are numerous other options (and variations) of these, but it is crucial that real estate investors have a thorough understanding of these primary options to consider alongside their investment objectives.

Continue reading to learn more about these specific financing options so

38

implemented. Ultimately, the benefit of a private loan is that the Lender is willing to provide a loan not only against the as-is property value, but

Make sure to do your own

also understands that if the planned

due diligence on all lenders to

future value will be higher – so they

improvements are completed, the are willing to consider that as well.

ensure they are reputable.

What is conventional financing?

Conventional Loans, such as those

Finding a private money lender

offered by banks and mortgage companies, have relatively stringent

that you can build a relationship

guidelines, so the popularity of this type of financing has limitations.

with is an important key to

To qualify for the “cheapest” money out there, there are typically income

potential investment success.

and credit requirements that are a roadblock for many.

Since

conventional

lenders

are

typically looking at the borrower’s you are better able to understand

earner,” the requirements are much

which option suits your needs.

more flexible:

What is private money lending?

A private money loan is a short-term

Higher leverage points

•

Lower credit requirements

•

No income requirements – since

loan. These loans are typically funded

a property that you’re looking to

by Private Lenders who are ultimately backed by individual investors. Since Private Lenders understand that

live in •

Higher interest rates, however, payments

are

Interest

afford

the

mortgage,

having strong W-2 income and requisite that many full-time real

after all this is an investment, not

also be referred to as a hard money

to

stellar credit are usually a pre-

•

loan secured by real estate and can

ability

only

Monthly payments

many real estate investors have a

Now you may be thinking, how much

short-term business plan to get into

money can lenders provide to the

and out of a property for a profit,

borrowers? It really comes down to a

loans of this nature typically have

Private Lender’s ability to understand

12-month terms. Additionally, as

what real estate investors do to lend,

Private Lenders understand that real

not only against the current value

estate investors aren’t the “typical

of the property, but also the future

$500,000 per year W-2 income

value once the business plan is

estate investors can’t get around. In addition, most banks provide a loan only against the as-is property value without any consideration to any planned improvements, which would be something that the real estate investor would need to self-fund.

Beyond leverage, time is money and speed is crucial to get a deal under contract. In most cases, conventional lenders operate at slow pace when approving a mortgage, which could ruin your chance to secure a great deal on a property.

Private vs. Conventional: Continues on pg. 40

October 2021 Originate Report 39

Private vs. Conventional: Continued from pg. 39

Misconceptions about private The reality is that there was once a negative connotation tied to private money lending and the industry’s was

associated

with

high interest rates. However, critics overlook many benefits: •

Time-saver:

Private

lenders

can typically decide on a loan application in 7 – 10 days •

Less red tape: private lenders are not required to abide by regulations created by the 2010 Dodd-Frank borrowers

Act, an

providing

easier

loan

application process •

with a gross profit of $200,000 and

in need of some improvements.

a net profit of $159,200. Amazing!

You’ve determined you can purchase

money lenders

reputation

property in a popular neighborhood

Value: conventional lenders must base loans on the property’s appraised value (LTV) while

the property for $600,000, spend

At the end of the day, when you look

$200,000 to remodel and then sell

at how much money you made, the

for $1,000,000. It’s a great plan and

conventional loan wins as it came

now all you need is money to make

with a lower interest rate.

it happen!

If you were to secure a conventional loan that doesn’t provide leverage toward the rehab, which requires a

20%

down

payment

toward

purchase, you would need to have $320,000 cash ($120,000 purchase cash + $200,000 for the remodel) alongside the lenders $480,000 loan.

After a lengthy process of providing W-2 income, financial statements and more to prove you can afford the mortgage (even though you plan

at how much money you had to invest to make that money (the cashon-cash return). From there you’ll quickly see that the cash-on-cash return for the private money loan is more than double and substantiated that from an investment standpoint.

Private money can provide investors better cash on cash returns than conventional money any day of the week.

on selling the property quickly), you

About the Author

on the property’s after repair

qualify for the loan and get started.

Chira Watson is a Creative Copywriter

value (ARV). Making private

At the end of six months, you sell the

and Loan Processing Manager at Carlyle

lending an extremely attractive

house for $1,000,000 with a gross

Capital. Her works have been included

option for real estate projects

profit of $200,000 and a net profit of

in the literary journal, WALL, and

that involve improvements

$179,740. Not bad! Just keep in mind

Orange County’s Riviera Magazine.

that this conventional loan requires

Carlyle Capital has provided her with

$320,000 equity to be put into the deal.

the skills and knowledge required to

private lenders base their loans

Make sure to do your own due diligence on all lenders to ensure they are reputable. Finding a private money lender that you can build a relationship with is an important key to potential investment success.

Cost-benefit Analysis: 5% bank loan vs. a 10% private money loan Now

that

we

have

a

general

understanding of financing options,

become a homeowner of her own.

Let’s see what this deal would

She currently lives in Laguna Hills

look like if working with a private

with her brother, Qilieun and their

money

dog, Uma.

lender.

Because

private

lenders consider the future value of a property and provide a loan against it, this loan comes with a much more manageable $120,000 equity requirement as they will lend

let’s look at the bottom line of

you 100% of your remodel budget.

a private money loan versus a

You save time as it takes on average

conventional loan.

10 days for you to know if you’re approved and get started on your

As an example, let’s say you’re a

remodel. The project is finished, and

real estate investor that has found a

you sell the house for $1,000,000

40

However, a savvy investor will look

Chira Watson Creative Copywriter & Loan Processing Manager Carlyle Capital https://www.carlylecapitalinc.com/

Free Resource to Find Private Mortgage Investments privatelenderlink.com/investments

Mortgage Trust Deeds & Private Mortgage Funds

View investment profiles and contact each company directly.

Access unique content to gain insights about private mortgage investing

privatelenderlink.com/investments Private Lender Link, Inc. CA DRE Broker Lic. 02057741 | (408) 413-2008 | 1963 O'Toole Way, San Jose, CA 95131

October 2021 Originate Report 41

FEATURED ARTICLE

At the Heart of Bridge Loans

A Conversation with Sofia Nadjibi and Mark Hanf

By Charles Peckman, Contributing Writer for Originate Report

A

bridge loan is a short-term

Originate Report sat down with the

they desire, I sensed that in a post-

loan that is used to help

duo to discuss their upcoming book

2008 crash environment I could

someone buy a new home

and the timeliness of informing real

scale bridge loan products in the

before they sell another property.

estate professionals about the power

marketplace, and also realized that

Simply put, this product assists

of bridge loans.

many were not aware this class of

homeowners who may feel stuck in their home or without additional loan options. No one understands this bind better perhaps than Sofia Nadjibi and Mark Hanf, who have teamed up on an upcoming book

loan tools even existed.

Originate Report (OR): How did both of you enter the space? Were

Additionally,

real estate and bridge lending topics

wanted to move in 2010, we found

that were always on your radar?

our perfect home utilizing the bridge

when

my

family

loan tool to make the transition Sofia Nadjibi (SN): I have been in

work. Once I saw how there was no

the mortgage business for almost

sale contingency, and we ultimately

25 years now and was working as a

received a discount on the house, I

traditional mortgage lender; I was

understood how powerful bridge

also the in-house mortgage lender

loans could be for consumers. My

for several real estate companies

own experience with the product

their combined decades of experience

– back when I became extremely

aside, I have always held such

in lending to illustrate the power and

passionate about creating strategies

passion for working closely with all

breadth of bridge lending.

for getting people into the properties

real estate professionals.

‘The Power of Bridge Loans’ about the subject of bridge loans. Nadjibi, Principal & Broker of Golden Gate Lending Group, and Hanf, Founder & CEO of Pacific Private Money, pooled

42

Mark

Hanf

(MH):

book aims to educate and reinforce

There are so many more buyers out

Pacific Private Money in 2008 after

the

measured

there now, versus how many homes

a 20-year career in real estate

approach to starting the process of a

are for sale. Inventory is at an all-

development, and now we’ve grown

bridge loan.

time low, and in order to secure the

I

launched

importance

of

a

property of your choice, you must be

the company to more than 30 team both

MH: One of the most important

competitive, no matter what market

consumer and real estate investors,

things, I think, that we do in the book

you find yourself in; and with that

and the journey from developer to

is set the current stage and explain

competitiveness comes the best offer,

lender, I have found, has been very

all of the extenuating circumstances

the best terms, no contingencies, and

serendipitous.

that have led to where we currently

members.

We’re

serving

Obviously,

coming

out of the financial crisis of 2008 was a difficult period to navigate, but I think the team that was put into place – in addition to learning about and implementing tools such as bridge loans – has crafted the success that Pacific Private Money continues to see.

OR: What are some of the areas or topics that the book delves into specifically?

SN: We will always look out for the client's best interest, and that is one of the main points or takeaways that we wanted to highlight in the book. We are also sharing many real-life stories of clients that we have helped over the years. We will

find ourselves. We're in a market today the likes of which none of us have ever seen, so I think many real estate professionals are having a difficult time understanding or finding which products work best for them. What we're aiming to do is address our piece of the puzzle and extol the virtues of a class of products many people don't know about, bridge loans.

OR: Why is now the best time to disseminate information about the subject of bridge loans?

SN: The biggest reason, in my eyes, is because of how hyper-competitive the market is right now. Throughout

making sellers feel as though your offer is the best they will find.

MH:

The

past

year

has

seen

uncertainty in the market, and frankly, COVID-19 created a perfect storm of events. You already had ten years' worth of low numbers in terms of new housing stock, both nationally and here in California – and paired with this, there are older generations who are looking to downsize and younger generations looking to move into their first homes. As Sofia mentioned, the pandemic also shifted how many people view their homes and what home itself means. What I strive to do every day is help people get to the heart of that question.

the COVID-19 pandemic, we have

OR: Ultimately, who is the audience

seen constant movement in the real

for this book? Is this set of tools

estate market. Many Millennials

primarily geared towards real

are entering the market for the

estate professionals or homeowners

real estate professional who picks

first time. And people who have

who may feel bogged down by the

up the book. But in terms of specific

traditionally lived in cities or more

examples, one client we have seen

urban areas realized that more space

repeatedly is older generations who

is necessary. If I were to look to boil

are looking to downsize. One client

it down into one word, that word

we had, who was 92, had lived in her

would be change. This prolonged

home for over 50 years – she was

period of being at home has made

the most remarkable woman ever,

people value their homes more and

and we made sure that every step we

to think about not only what makes

were taking was in her best interest.

them feel at home, but ultimately

I cannot reiterate enough that this

what sort of home they want.

always explore every loan option to ensure that a bridge loan is the right path, and likewise, we wish to share that knowledge with every

system?

SN: I think Mark hit at the center of this issue, providing a solution for homeowners and real estate professionals. We provide a solution for

people

who,

circumstances

and

under

normal

without

the

knowledge of bridge loans, may Bridge Loans: Continues on pg. 44

October 2021 Originate Report 43

Bridge Loans: Continued from pg. 43

delay or dismiss the potential of moving into a new property. It's about providing education, but also merely increasing awareness for this solution. In terms of the book itself, it's also about marrying my expertise with Mark's

expertise.

Although

we've both been professionals in this space for over two decades, every real estate professional will approach

situations

through

a

slightly different lens.

Sofia Nadjibi

Mark Hanf

Principal & Broker, Golden Gate Lending Group

CEO, Pacific Private Money

who could have our voice and

our advantage throughout the course

and we're providing the tools to get to

understand what we were doing.

of writing this book. For this project,

that solution. Regardless of whether

We take great pride in our work,

a particular party is aware of bridge

so finding a writer and working to

loans, they know that there is a desire

create the flow of the book ties back

to move into a new property, and in

into the education component that

many cases, they may feel trapped

is so important. We want to educate

MH: At the end of the day, we're helping homeowners with a solution,

without access to the toolset of bridge loans. So in terms of thinking about who this product is for, I find it is best to think about anyone who wishes to spring that trap. Aside from home buyers and homeowners, it goes without saying that this book is geared towards real estate professionals as well. Bridge loans are tools that anyone can use to be a hero for their clients, and we are perpetually looking to ally ourselves with this empowered group of real estate professionals.

OR: How did you approach the writing process? Did you have a sense of trepidation about

our readers on the amazing tools that are out there, tools that many people don't know about. Both Mark and I were challenged to put our expertise into words and relive situations and

interviewed

us

throughout

many two-hour sessions, and the significant part about that format, or using the services of a writer and editor specifically, is that Sofia and I can sit back and take stock of our experiences to serve the structure of the book better. We were both very cognizant throughout the process to ensure that the book is not about us. It is about the set of tools out

tools we offer through the interview

there

process. At the end of the day, if you

seasoned homebuyers.

for

both

prospective

and

are crystal clear in your approach and have a firm understanding of the players involved, the commissions will come naturally – but it's not about the commission, that's not why I do it. I am passionate about helping homeowners make the next move. Creating this book has been a great ride.

MH: The book writing industry has come a long way in the last few

SN: What was important for both

years, or in the previous five years

Mark and me was finding someone

specifically, and we have used that to

44

who

anecdotes that speak to the amazing

approaching such an ambitious project?

we utilized the services of an editor

For More Information: Sofia Nadjibi https://www.gglendinggroup.com/ Mark Hanf https://www.pacificprivatemoney.com/

Helping families buy their dream home in CALIFORNIA since 2000.

Be a cash-like homebuyer in today's competitive real estate market.

Short-term Bridge Loans made easy.

Book to be released 10/2021 @ Sofia Nadjibi | Sofia gglendinggroup.com | (415) 366-5668 @ gglendinggroup.com | goldengate_bridgeloans DRE 1405277 | NMLS 241012 October 2021 Originate Report 45

LESS RISK, MORE REWARD Correspondent Lending is made simple with RCN Capital.

We provide competitive loan programs & seamless white-labeled funding, so you can focus on originating.

Contact Wholesale Lending Manager, Tiffany Walker \ Email TWalker@RCNCapital.com \ Call 860.783.8844 RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258.

Arizona Mortgage Banker License BK-0932325. Oregon Mortgage Lending License: ML-5571; NMLS Company ID: 1045656.

46

G

SE E R P LLP I C A ER

NTS

TWO N O S SEA

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

https://geracilawfirm.com/lender-lounge/ October August 2021 Originate Report 47

INDUSTRY NEWS

INDUSTRY NEWS

48

PRESS RELEASE

RCN Capital Recognized on 2021 Inc. 5000 List of the Fastest-Growing Private Companies South Windsor, CT, August 17, 2021 – RCN Capital, the leading nationwide private lender for real estate investors, has been named on the 2021 Inc. 5000 list, the most prestigious ranking of the nation’s fastestgrowing private companies, ranking No. 3251. RCN Capital also ranked No. 180 on the Inc. 5000 Regionals: New York City Metro list earlier this year.

“It is truly an honor to see RCN Capital on the 2021 Inc. 5000 list with the likes of so many other prestigious companies,” said Erica LaCentra, CMO of RCN Capital. “The tireless efforts of every member of RCN have helped us to grow to where we are today, and their ongoing hard work and dedication continues to push the company to greater heights.”

RCN Capital provides unique financing options for real estate investors that are purchasing or refinancing residential and commercial investment properties. Initially starting out by offering short-term fix & flip and bridge financing, RCN has expanded their loan programs over time and now offers long-term financing options for investors looking to build their rental portfolios as well as new construction financing.

The company has grown rapidly over the last ten years and has recently opened an office in Charlotte, NC as well as Los Angeles, CA in addition to their main headquarters in South Windsor, CT. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000.

About RCN Capital RCN Capital is a South Windsor, CT based national, direct, private lender. Established in 2010, RCN provides commercial loans for the purchase or refinance of non-owner occupied residential and commercial properties.

The company specializes in new construction financing, short-term fix & flip and bridge financing and longterm rental financing for real estate investors. For more information on RCN Capital and RCN’s loan programs, visit www.RCNCapital.com.

For More Information, Contact: Erica LaCentra, Chief Marketing Officer elacentra@rcncapital.com | (860) 432-4782 | https://rcncapital.com/ October 2021 Originate Report 49

PRESS RELEASE

Anchor Loans Becomes First Fix-and-Flip Lender to Originate $10 Billion THOUSAND OAKS, Calif., Sept. 22, 2021 – Anchor Loans, the nation's leading provider of financing to fix-andflip entrepreneurs, announced today that its total originations have now passed the $10- billion mark, making it the first fix-and-flip lender to achieve this milestone.

In 2016, Anchor became the first fix-and-flip lender to originate more than $1 billion in a year, a level that it has surpassed every year since. This year, Anchor passed the $1 billion mark in August.

Anchor Loans is the lender-of-choice for experienced real estate investors and builders. Approximately 85% of Anchor's business has come from repeat clients who benefit from the Company's fast turn times, flexibility to accommodate special situations and the ability, and capital, to fund multi-million-dollar projects. The Company also has strong capital sources, proprietary technology and seasoned, expert support operations with a dedicated team approach to client relations.

"Surpassing the $10-billion mark is a significant milestone for Anchor and the fix-and-flip lending industry.

It speaks volumes about the performance and dedication of our team and the high level of confidence that our clients have placed in us year after year," said Andy Pollock, Anchor's Chief Executive Officer. "While it is rewarding to look back on what we have achieved, what's ahead for Anchor in terms of growth and product expansion is just as exciting."

About Anchor Loans Anchor Loans is the nation's number one private lender to fix-and-flip entrepreneurs, with a total funding of more than $10 billion since 1998. With advanced, intuitive technology, Anchor provides fast, reliable funding and an exceptional customer experience—forging long-term client relationships and helping customers achieve and exceed their business goals. More than 85% of Anchor's borrowers are repeat customers, and over 70% of the Company's new borrowers were referred by an existing customer. Ranked for the past two years on the Inc. 5000 list of the fastest-growing privately held small companies in the U.S. For More Information, Contact: info@anchorloans.com | (310) 395-0010 | https://www.anchorloans.com

50

UPCOMING ISSUES 2022 MONTH

THEME

CONTENTS & AD DEADLINE

February 2022

Multifamily Lending

January 10

April 2022

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

March 4

June 2022

3rd Annual Women in Real Estate Edition

May 6

August 2022

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

July 8

October 2022

AAPL Special Edition – Focus on CRE*

September 9

December 2022

Year in Review – Highs and Lows of 2022

November 5

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

COVER STORIES & FEATURED PIECES Conference-Specific Cover Stories* • 2500-3000-word article written by an Originate Report staff writer • Cover story company to provide 5-10 photos for use with article** • 25 printed copies for Cover Story subject • Printed Copies prominently displayed at Innovate, Captivate, or in the bags at AAPL depending on issue Non-Conference Specific Cover Stories • 2500-3000-word article written by Originate Report staff writer • Cover story company to provide 5-10 photos for use with article** • 25 printed copies for Cover Story subject • Some printed copies may be made available at conferences including CMA, Captivate, CREF, AAPL Featured Pieces Both conference and general cover story • 750-1000-word article written by Originate Report staff writer • Story company to provide 3-6 photos for use with article** *Includes cover **High resolution (300dpi) photos - Include captions; list photos in order of preference; stock photos can be provided by the designer

ADVERTISEMENTS Originate Report magazine is distributed through print and digital channels to thousands of loan originators, lenders, investors, and other professionals in the non-conventional lending industry. It has become an essential resource for its audience, providing valuable and timely content with each edition to help readers stay up-to-date on current industry trends and grow their businesses. Originate Report also provides a platform for professionals in the lending space to promote their services through advertisements.

Please reach out for pricing and opportunities. *Advertisement pricing includes graphic designer working with you to create the ad. Take 10% off if you provide the file to use in our publication.

Lesley Boyd, Senior Vice President of Marketing l.boyd@geracillp.com | submit@orginate.report | (949) 379-2600 www.geracilawfirm.com | www.originate.report | www.geracicon.com October 2021 Originate Report 51

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

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

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

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

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

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

CONNECT WITH US (949) 379-2600 90 Discovery Irvine, CA 92618 https://geracilawfirm.com/ • https://geracicon.com/ • https://lightningdocs.com/ 52