Originate Report - October 2018

THE OFFICIAL MAGAZINE OF GERACI OCTOBER 2018

Cities to Watch: San Diego

Industry Spotlight:

Bobby Montagne Triumph Capital Partners’

OLIVER AUSTRIA

On Putting Customers First

Inside

October: IRA Questions You Should Be Asking

AMBITION What Is It That You DO? www.originate.report 1

2 Originate Report | October 2018

contents OCTOBER 2018

Features

16 The Top Three Regs Non-Conventional Lenders Use to Raise Money

By Kevin S. Kim, Esq., Geraci LLP

20 Private Lending IRAs: Not-So-Frequently Asked (But Still Very Relevant) Questions

20

Clay Malcolm, New Direction Trust Company

Who to Know 8 Profile

Oliver Austria, Triumph Capital Partners

By Cathleen Yates, Originate Report

14 Industry Spotlight

14

Bobby Montagne, Walnut Street Finance

In Every Issue

6 Anthony’s Rules for Success

Ambition vs. Hubris

By Anthony Geraci, Geraci LLP

12 Get $#!& Done with JT Terrell

What Would You Say You Do Here?

8

12

By JT Terrell, Petra Coach

13 Industry Job Watch

22 Cities to Watch

San Diego, CA

By Cathleen Yates, Originate Report

24 Upcoming Events 26 Loan Home

22 www.originate.report 3

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4 Originate Report | October 2018

ANTHONY GERACI CEO/Editor

RUBY KEYS Marketing/Editorial Director

JOHN PELACHE Account Executive

ALICIA CARTER Marketing Coordinator

MAX BERGER Content Editor/Content Marketing Specialist

DAVID BASEN Digital Marketing Specialist

PAM HUBER Art Director

CONTRIBUTORS Anthony Geraci • Kevin S. Kim, Esq. Clay Malcolm • JT Terrell Cathleen Yates

FOUNDING UNDERWRITERS

MARK HANF President, Pacific Private Money

ORIGINATE ONLINE www.originate.report

GERACI ONLINE www.geracilawfirm.com Interested in advertising in Originate Report? Please reach out to John Pelache at John@Originate.Report or (949) 379-2600 For Advertising Submissions, Article Submissions, and Inquiries contact Submissions@Originate.Report

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

Fall is finally here, and we couldn’t be more excited. It’s that beautiful time of year where the leaves change their colors, the pumpkin spice latte makes its dramatic return… and Geraci’s Captivate East 2018 Conference begins. We’d like to personally invite you to attend on October 16-18. After the success of the first Captivate conference we decided to expand it to the East Coast – providing you with more opportunities to expand your reach and grow your business.

Please visit geracicon.com to learn more.

In the meantime, we hope you enjoy this edition’s featured articles, and that you continue sending us your feedback on what you find valuable in Originate Report. Here are some comments from our readers and contributors: “Often times in our relatively niche business of private lending you find it difficult to get your message out to the right audience. This is especially frustrating when your specific message can help somebody grow their business responsibly. I was thrilled to provide content to the magazine. First, because the people at Geraci are the authorities in spotting talent in our space and I felt honored to share my story with them and second because, unlike others who have tried in the past, they have created a respected a well circulated platform to share that story.”

“We have enjoyed the opportunity to connect with thought leadership through the Originate periodical. It is has provided us with the discreet opportunity to connect with the best.”

Thank you for your continued support, and stay tuned for some new developments coming soon. We’ll see you in Miami!

Max

Max Berger Originate Report Content Editor

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

GERACI CONFERENCES www.geracicon.com

www.originate.report 5

ANTHONY’S RULES FOR SUCCESS

Ambition vs. Hubris

By Anthony Geraci, Geraci LLP

I

“You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.”

– Abraham Lincoln

n September, Theranos emailed its shareholders

results were often wrong, and Theranos admitted later

her chemical engineering professor. He was impressed

ing one of the more intriguing scandals of the past

with traditional lab equipment.

Bill Gates or Steve Jobs. In a conversation he relayed to

and told them it will file to dissolve, officially end-

few years. When all is said and done, investors in Theranos will lose over $1 billion. Its CEO, Elizabeth Holmes,

was widely touted to be a genius and was named one of Time magazine’s Most Influential People in the World

in 2015. Forbes ranked her on its 2015 list of the Most Powerful Women in business. As the youngest female

self-made billionaire in history, she ranked 110 of

Forbes’ 400 wealthiest people in 2014 (she was worth $4.5 billion at the time). So what happened?

Theranos was the darling child of Elizabeth Holmes

who, with some scientific background in chemical engineering and no background in biology, decided to in-

vent a device that could obtain “vast amounts of data from a few droplets of blood.” Several of her professors

at Stanford University said it was impossible. She did, however, convince her chemical engineering professor,

Channing Roberts, that it could be done and got him to

be the first board member. He introduced her to venture capital, and it all went from there.

Fast-forward to 2015, when the Wall Street Journal pub-

lished a scathing report of Theranos’ Edison device (the device touted to get data from a few drops of blood).

The newspaper talked with insiders in the company who said the Edison device was not accurate and was

producing poor data with those droplets of blood. Even

though these results were ready within 15 minutes, the

6 Originate Report | October 2018

that over 90% of their tests were done behind the scenes

The SEC charged Ms. Holmes and the company with rampant, years-long fraud. Not only were investors de-

“Integrity means that you are the same person in public as you are in private.” frauded of $700 million, the Justice Department stated Ms. Holmes and President and COO Ramesh “Sunny” Balwani perpetrated a multi-million dollar scheme

to defraud doctors and patients. Holmes settled civil charges with the SEC and paid a $500,000 penalty. Balwani continues to fight the charges against him.

Fooling Some of The People But Not All of Them

Ms. Holmes’ sin was hubris wrapped in ambition. Ms. Holmes was 19 when she proposed her idea to Roberts,

and equated her intellect and ambition with that of a Fortune magazine, she stated, “...Systems like this could

completely revolutionize how effective health care is de-

livered. And this is what I want to do. I don’t want to make an incremental change in some technology in my

life. I want to create a whole new technology, and one that is aimed at helping humanity at all levels regardless of geography or ethnicity or age or gender.”

Ambition and hubris are closely related, but we shouldn’t allow overconfidence to take control. While she fooled some of the people, the platform Theranos offered Ms.

Holmes and her nascent need for fame led Theranos

to its logical conclusion: When everyone was watching, she couldn’t fool them all. Theranos has become this

generation’s Enron. Instead of trying to fool people, the time is better spent trying to produce something actual. Integrity means more than quick “fame or fortune.”

As Joyce Meyer says, “Integrity means that you are the same person in public as you are in private.”

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

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

www.originate.report 7

PROFILE

Customer Service is Not Dead.

(L-R) James Holland, Brendan Ochinero, Oliver Austria, and Paul Shaughnessy

Profile: Oliver Austria

Co-CEO, Triumph Capital Partners

By Cathleen Yates, Originate Report How quickly the finance market changes: Ten years ago, the private lending industry was emerging from its infancy after the 2008 housing market crash. Wall Street and private equity money was non-existent. Wealthy fix-and-flip experts dominated the market with a “cash is king” mentality and paid little mind to customer service. Without competition, there was no need.

8 Originate Report | October 2018

Today, with the rehab market on a steady course, investors are invited to enter the market, and competition has increased. How, then, does a company differentiate itself from the others?

Beach, Calif. “I take pride in my team’s ability to take this experience of the borrower and make it a great one.

It’s a client-focused, advisory-based business. It’s the approach a financial advisor would take when dealing with investor clientele.”

Triumph Capital Partners provides commercial-purpose loans secured by residential real estate to the fix and flip and homebuilder communities. The firm focuses on five states — California, Massachusetts, Florida, Illinois and Texas — but serves 42 states total with additional partners.

“We’ve taken an industry where customer service is basically non-existent, and we have made a focus to provide best-in-class service throughout every touch point, whether it’s origination, time to funding, or delays in construction,” says Austria. “We understand there is a lot of repeat business in this space and we’re approaching it with the best attitude.”

Triumph Capital Partners offers competitive rates: For rehab projects, Triumph will fund up to 85% of the purchase and up to 100% of the rehab at an interest rate of 6.99%. Loans range from $150,000 to $3.5 million.

Construction and bridge loans are also available.

While other companies provide low rates and high leverage for borrowers, Triumph takes a measured approach. The advisory role relationship applies to deals that don’t work as well as deals that do work: Triumph will analyze the market, comps and the borrower’s bud-

By catering to the needs of the customer, of course.

“Customer service is back in the industry,” says Oliver Austria, Co-CEO of Triumph Capital Partners in Solana Profile: Oliver Austria continues on pg. 10

Revenue diversification

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

TODAY’S MARKET OPPORTUNITY: •

•

•

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

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

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

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

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

BROKERS, PARTNER TODAY

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

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

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

• • • • • • •

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

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

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

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

http://triumph.capital/brokers

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

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

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

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

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

For more information call

877-450-9741

ROB JENNINGS robert@triumph.capital

GEORGE O. FLINT goflint@triumph.capital

www.originate.report 9

Profile: Oliver Austria continued from pg. 8

get to provide a consultative service. “If we feel a project might not work with our clients, we’ll analyze the deal for them. And a lot of times we’ll say, ‘We don’t think you’ll be making the kind of money you think you will; I would reconsider it. If you want to do the loan, go do it somewhere else, because it’s not going to be with us.’ That’s the type of approach we like to have, and we found that all of our clients have been receptive to that approach.

We’re not going to give away the money if we don’t feel you can handle it.”

Austria finds there are more avenues to customer service than loan offerings, particularly as they apply to the San Diego market, which has remained strong the last few years. Across the country, however, home sales have slowed, and as a result, investors’ interest in commercial projects has increased. Investors are seeking fixand-flip commercial projects to groundup construction. But another hot opportunity lies in scrapping homes: for example, purchasing a 1,500-square-foot home and razing it to build a 3,000-square-foot home.

For all its innovation and capital backing, Triumph Capital Partners is young but packed with 40 years of cumulative experience between the principals. Launched in 2016 with Co-CEO George Flint, Triumph has grown rapidly and now employs 20 people. Rapid success doesn’t come without challenges, however, which the company faces daily, Austria says. “We’ve been able to come together as a team and address challenges in real-time basis. Our first challenge was raising capital.

More people leads to more and better technology, more defined systems and processes, training and buy-in. Aside from these challenges, Austria says the goal is to embody the company he and Flint envision, in which they are outstanding stewards of investors’ money. “To have excellent asset management and loan servicing, we work on those things every single day,” Austria says.

(Above) George Flint and Ras Abdelrasul with Oliver Austria

Triumph’s response to this interest was to create a white-label capital program that handles all aspects for investors: raising the money, assembling the fund, then paying attorneys and accountants to manage it. This was created with its joint venture with Brixton Capital, a San Diego-based private equity firm with a portfolio of 10 million-plus square feet and a value in excess of $1.4 billion. “They focus on real estate and believed in our business model and vision,” Austria says. “They provide us capital and the balance sheet to be a force to be reckoned with in this business.”

Triumph Capital Partners also offers its clients the benefit of a Home Depot relationship, which provides a 23% discount on building materials. In the next few months, the company plans to launch a debit card for clients to purchase construction supplies and other project needs.

“We have a lot of things in the works that have not been done by anyone else in our space,” says Austria. “We’re always focused on providing value to our investors, our borrowers, and our partners. We can’t be everything to everybody. We don’t have the mindset to compete with so-andso. Our mission is to be the best private lender for borrowers while being the best steward of investment dollars for investors. If you have those two things in mind at all times, they tend to balance each other out. We’ll never get over our skis just so we can get a loan, and we’re never going to be so myopic we can’t provide any value to borrower.”

A third product launching soon is Triumph Academy, an educational resource for partners — correspondents, lenders, or brokers — to receive training on products, sales, and the industry. Austria expects it to go live in 2019.

10 Originate Report | October 2018

to hire recruiters to bring in employees that would fit the need and the culture. “It’s growing pains,” says Austria.

“Raising capital is fundamental. If you don’t have capital, you don’t have a business in the world of lending. As we’re taking hats off our heads and divvying up tasks, we’re running out of people in our immediate circle to bring on and we have to bring in complete strangers and indoctrinate them to our work ethic and culture.

It’s the culture that drives a lot of things. Now George and I manage people. We have to maintain productivity and the culture that got us here in the first place. That becomes exponentially more difficult as we bring in more bodies, roles and objectives.”

Austria sees more growth ahead for the company and the need to take the right risks. The fact that one bad loan can wipe out profits or potentially end the business has inspired an incentive for sales people to make good loans and be responsible for their performance. If a loan goes delinquent, the sales person’s compensation is tied to the performance of the loan.

This, says Austria, is just one example of how the company plays defense. Another is how the company prepares for market cycles. “We are 10 years into the market cycle,” he says. “What happens next month or year or five years from now? There’s a likely chance we won’t be in the same cycle. So playing defense means taking into account all things happening in the market and using it to calibrate our business.”

Initially, we were raising capital through private placement memorandum, but we eventually partnered with the private equity fund (Brixton). That solved our capital problem.”

As the company grew, the second challenge asserted itself: hiring more team members. As a small company, Triumph hired people close to them, but eventually had

All of which circles back to customer service for borrowers and investors and building an unparalleled platform for the private lending industry, presented in a young, hip, fresh environment. Recently, the company invited new and existing clients to an event called Cuts ‘n’ Cards, a fun and unique open house that offered poker games, catered Mexican food, and hair cuts. “Instead of a standard recruiting event,” Austria says, “we took the opportunity to bring in a few barbers and a taco truck. It gave us the opportunity to interview people while they’re getting their hair cut. We try to display our culture and our DNA as much as possible, because I’m pretty sure it’s pretty unique. You don’t get to do that in a conference room or sitting outside on our patio.”

Service is King. And is just another way Triumph Capital Partners creates value.

CONTACT: To learn more about Triumph Capital Partners, visit http://www.triumph.capital/

You’re going places.

Don’t stop until that place is the top.

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

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

behind you all the way. find us online at www.originate.report www.originate.report 11

GET $#!& DONE with JT TERRELL

What Would You Say You

Do Here?

By JT Terrell, Petra Coach

I

n the epic/classic movie “Office Space,” a team of downsizing consultants, Bob and Bob, asks a series of leading questions to a frightened long-term employee, and when he gives predictably vague and unconvincing answers, they finally ask him, “So what would you say you do here?” To which he freaks out and seals his fate with a defensive, profanity-laced tirade. The funny part is, it seems most of us spend the better part of our day justifying what we do to other people, or coming up with ways to quantify the value we bring to each other.

At Petra Coach, we have the unique opportunity to see into all kinds of different sizes of companies from various industries and levels of revenue. While we find that our core customer is somewhere between $5 million and $50 million dollars in revenue, we also work with startups that have no revenue to speak of and much larger well-established companies that are pushing $500 million annually.

The common threads that run through all of these different companies (employee engagement, development and learning, disaffected customers, quality issues and financial responsibility) are the usual places where we dig in and do our work. But one of the most common areas that I’ve seen in my coaching career is when the founder/owner of the business has a difficult time explaining to the team what he or she does on a daily basis. Honestly, it can be the source of a lot of insecurity and frustration for those leaders. In many cases, the growth of the organization has overtaken the growth of the founder.

Sales Junkies

We find that founders who usually served as the first company salespeople like to keep a toe dipped into the sales pool and consider themselves a de-facto leader.

The only problem is it becomes very uncomfortable for the actual sales leader to do their work. So we like to encourage that leader to find out what specifically they want to do on a daily or weekly basis to continue relationships, drive new business, and/or help their current customers become more successful.

Usually their answers are something like, “I attend industry events or reach out to other founders for lunch and new business opportunities,” which sounds critical to me, but in the face of the day-to-day heavy lifting done by their team, it sounds like light duty work.

I encourage them to monitor their daily activities and break down the three or four most important things they do with any regularity. What I am digging for is key performance indicators. What activities, when done with regularity and reported to the team, push results?

The next thing you know, these people are reporting on the number of hours spent setting up appointments for the next full week, the number of face-to-face appointments attended from the previous week, the number of probing phone calls made to principals of existing accounts, and finally, any pertinent information learned from these meetings. Let’s face it: As the owners, they can get meetings no one else can, and that should be the lever they push and pull everyday.

What have we done here? We are now leveraging the true power of activities by the owner of the company and getting them focused on the most important things

they can do to move the company forward. We’ve also given the boss important stuff to talk about at weekly meetings. Remember, the boss is primarily listening in on weekly meetings just to see what’s going on, looking for roadblocks and crafting solutions. It is also important for them to contribute information about activities that are meaningful and powerful to show the team what they bring to the table every day.

Ops Experts

Typically, if the founder is strong in operations, we’ll see that they tap out after a while, operationally. They have a very particular way of doing things that took them to a particular level of success, but it will not scale and get them where they ultimately need to be, nor does it allow the ops leader do their thing.

We encourage those leaders to be present at operations meetings, to add color to particular discussions, but make no decisions moving forward. Maybe put them in a board seat, where they can operate as part of a group, but their days of making decisions on their own are over.

Where we’ve really found a lot of value is when these particular founders can cull through reports to pull out anomalies for group discussions. The leader can steer the discussion and look to the team for insight and solutions.

Marketing Whiz

Oh man, is there anything worse than a founder who was the marketing person when their company was small, and who still believes they are the right person for the job of the now medium-sized business?

The old adage “the bottleneck is at the top” was built for these people.

But the important thing is that this business started from the founder’s vision, so always keep them as a part of the creative process, but not as the final decision-maker on the marketing strategy and plan.

I’m having a little fun at the owner’s expense now, but the important thing to remember is that the founder and visionary of the company is the reason why the company existed in the past, works in the present, and will thrive into the future.

So get off of their back, they’ve earned it!

We like to talk with these leaders to about their expertise and skills so they can ultimately replace themselves and concentrate on the longJT Terrell is a big believer in earned trust and the power of planning, and he’s put both into action in his own term company strategy. That is life and career. After 10 years as a professional musician, JT founded event rental company Music City Tents truly where the founder’s greatand Events LLC and grew it into an industry innovation leader. JT attributes his company’s success to his work ness lies and where he or she can with Petra Coach and the adoption of the Rockefeller Habits. JT is now thrilled to be on the other side, coaching and engaging businesses to help them uncover opportunities, create strategies, and get focused. Reach him at be most impactful.

(888)330-1020 x705 or jt@petracoach.com.

12 Originate Report | October 2018

JT Terrell, Monthly Columnist

INDUSTRY JOB WATCH

Money360, Inc., Ladera Ranch, CA Commercial Real Estate Loan Underwriter must be able to eval-

Look Wh o’s Hiring!

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

uate loan opportunities, including, the real estate collateral securing the proposed loan, the surrounding market and demographic area and the adequacy of the loan structure of the transaction and/or relationship. Primary duties include the underwriting of commercial real estate and bridge loans, reviewing loan documents, spreading financial statements, evaluating borrow/guarantor financial support and management, and developing rationale for pricing decisions. The role will be responsible for all aspects of a proposed loan from the time the borrower executes the term sheet through closing. Interested parties should contact Paul Cleary.

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

REDWOOD MORTGAGE, San Mateo, CA California’s Redwood Mortgage, a privately owned real estate mortgage and investment company located on the SF Peninsula, seeks Account Executives for key California territories. “Redwood Mortgage has been one of California’s leading innovators in private mortgage lending and mortgage pools. The company offers the right candidate the opportunity to build a territory and career in our loan sales department. The ideal candidate has solid experience in commercial, multi-family and residential investment real estate lending, have an active Cal DRE real estate license, and NMLS. The person will learn and understand the commercial bridge loan product and private money loan product, and manage a territory and develop relationships with Bankers, Brokers and Retail borrowers. Benefits include 401K, dental, life insurance, medical, and vision. Interested parties should contact the Director of Sales and Marketing Steve Belleville.

CONTACT: steve@redwoodmortgage.com www.redwoodmortgage.com

We turn optically challenged loans into

COMMISSION. Nationwide commercial real estate lending.

(760) 607-5400 www.helveticagroup.com

Sometimes, it's about personality. $1.45M Jacksonville, FL Matured Balloon | 32% LTV

$2.7M Hinsdale, NH Unstabilized | 60% LTV

$1.9M Ramona, CA Low Occupancy | 60% LTV

$800K, Carlsbad CA Fix & Flip | 80% LTC www.originate.report 13

SPOTLIGHT

Industry Spotlight:

Bobby Montagne Chief Executive Officer, Walnut Street Finance

14 Originate Report | October 2018

R

obert “Bobby” Montagne is a real estate entrepreneur with three decades of experience in commercial and residential property development, finance and sales.

Having successfully overseen $15 billion in career transactions, he is among an elite class of real estate innovators that has consistently delivered high-quality returns to partners and investors.

A native of Fairfax, VA, Bobby earned a Bachelor of Science degree in Economics with Honors from George Mason University and a Master of Business Administration from Virginia Tech.

Originate Report: How did you get started with Walnut Street Finance?

Bobby Montagne: My entire career has been in real estate development – first working for others for 10 years before launching off on my own. I founded the Walnut Street entity in 1997, which focused on infill development projects ranging from large-scale urban condos to commercial construction. In 2010 my company at that time, Walnut Street Development Capital, transitioned into the residential fix and flip space, renovating and reselling more than 250 houses in neighborhoods across the DC Metro area. By 2014, competition had increased, prices kept rising, and we were outbid on a few deals. I connected with the purchasers, asked how they were funding their projects and came to realize that they weren’t quite sure since winning their bid came first and securing financing came next.

That’s when the lightbulb went off.

I had capital available that I wasn’t spending on acquisition and these builders needed quick financing. I did my first private lending deals on the side for a couple of years to get a true sense of the need for capital. In 2016, we completely pivoted to private lending and founded Walnut Street Finance.

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

Montagne: People with aptitude. We are fortunate to have a team of versatile, motivated individuals who have turned a small start-up into a thriving, growing business. I am very thankful, as the company wouldn’t be the same without them and their hard work.

OR: How have you seen this industry change since you started the company?

Montagne: The private lending space has been discovered. The secondary market keeps growing; Wall Street and private equity firms are providing billions in capital to fuel this growth. Investment management firms such as 1Sharpe and Toorak are carving out increasing amounts of their portfolios to invest in these short-term collateral-based real estate loans.

Additionally, secondary market lenders such as Peer Street are providing access to private lending to the masses via their platforms.

Q: How has your experience working in residential and commercial property development set you apart from other hard money lenders?

Montagne: Several important ways. We have a deep understanding of construction, from the entitlement process and construction to the borrower/developer men-

Bobby Montagne, Walnut Street Finance

tality. By tapping into our development background, we are able to comprehensively underwrite the complexity of a deal as well as help borrowers throughout their project - from budgets and permits to marketing. Because of our building expertise and professional network, we can also backstop deals if they go south, protecting our investment capital and ensuring the timely completion of projects.

OR: What are some of the biggest challenges that Walnut Street Finance faces?

Montagne: Capital constraint. Our strong pipeline allows us to remain highly selective in regard to the loans we fund, however, we continually find that we could finance more of the deals that are presented to us had we the funds available. We routinely counterbalance our efforts of originating quality loans with identifying and engaging new sources of capital. Finding a committed capital source will prove to be even more important in 2019 as we are anticipating significant growth. With the influx of institutional capital coming into this space, we feel confident in our efforts.

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

Montagne: When I was very young, my dad provided great advice to me which applies to business and life: “it’s not what happens to you that matters, what matters is what you do about it.” How you perceive the situation, understand the landscape, pivot when opportunities present themselves, and see your plan through regardless of the challenges is how growth happens.

OR: How have you utilized technology to enhance your business?

Montagne: We use technology in many facets of our business. First and foremost, we infuse technology into our marketing efforts. We rely heavily on our web presence and branding and have invested in a dedicated system and team to create educational content, social media campaigns, and a customized system to strategically stay in contact with our leads throughout the various stages of the sales funnel. We consistently check and recalibrate our marketing efforts through our analytics process.

We also utilize technology to track origination and servicing activities. A centralized online platform has become a must as our loan portfolio has expanded passed the efficient capacity of a spreadsheet.

We also use various online platforms in our underwriting and due diligence processes.

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

Montagne: Creating and building a business. I am driven by the process of turning an idea into a thriving entity that can stand on its own. We’re not afraid to take action, make mistakes, adjust and move forward. And I truly enjoy creating businesses that impact people in a positive way, from our team at Walnut Street to our capital investors, and most importantly, our borrowers.

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

Montagne: I was very lucky to have a mentor, Harley Cook, from my time as a Development Officer at Sunrise Senior Living in the early 90s. He taught me that I was responsible for every aspect of my development project and that every detail mattered. I watched closely not only to what he did, but what he did not do, how he conducted himself both as a businessman and as a person, and tried to emulate him. I still value the lessons I learned decades ago from him.

OR: What are some of your professional goals for the rest of 2018?

Montagne: There are several goals we are seeking to achieve for the rest of 2018 as well as throughout 2019.

We expect to enter new regions and are currently analyzing data and market conditions across the country – with a focus on the East Coast. Additionally, mezzanine financing may be a new option we will offer to our borrowers.

By expanding our geographic footprint and menu of financing options – we expect to double assets under management by the end of 2019.

CONTACT: walnutstreetfinance.com bobby@walnutstreetfinance.com | (703) 263-8687 www.originate.report 15

FEATURE

The Top 3 Regs Non-Conventional Lenders Use to Raise Money

By Kevin S. Kim, Esq., Geraci LLP

A

re you a private lender? non-conventional lender? mortgage broker? Do you fund your loans through investors’ capital?

If so, this article is for you.

MYTH #1: Brokering loans to investors does NOT constitute a security.

FALSE. The SEC and every state securities regulator has made it a point that Promissory Notes are almost always a security. The broad test often referred to as the “HOWEY TEST” will result in whole notes, fractional interests in notes, unsecured notes, lines of credit, stock, membership interests or LP interests in an LLC offered to third parties for purposes of investing is definitely a security.

MYTH #2: I don’t need to comply with securities regulations – I’m just raising money from friends and family.

FALSE. First, cousin Bob can become plaintiff Bob in a split second. Second, the SEC and state regulators are interested in protecting investors, regardless of the existence of any personal relationship between the investor and the sponsor.

Are you a private lender, non-conventional lender, or mortgage broker? Is your capital sourced from private investors (friends and family included)? Here are the Top Three Regulations Lenders use to raise money legally.

1. Regulation D Rule 506(B)/506(C)

Regulation D is a federal securities “safe harbor” that establishes that if an “Issuer” (i.e. someone who offers and sells securities to investors) relies on its requirements, it is exempt from registration with the SEC. For clients who operate national fractionalized loan offerings, debt offerings, and debt funds – 99% will uti-

16 Originate Report | October 2018

lize Regulation D’s Rule 506(B) or 506(C). (See chart below) Maximum Offering Limit Federal Preemption Advertising & General Solicitation Non-Accredited Investors Permitted?

Liquidity Restrictions?

Compliance Requirements

Rule 506 (B)

Rule 506 (C)

Yes-Up to 35 Max

No. Verified Accredited Investors Only Yes-Minimum one year Form D w/SEC & States

None Yes No

Yes-Minimum one year Form D w/SEC & States

None Yes Yes

2. Regulation A

Regulation A was amended and significantly expanded in 2014 as part of the JOBS Act. This amendment essentially opened the door to true “Crowdfunding” – in the sense that is permits issuers to raise capital from the public (in a certain limited fashion). In many ways Regulation A can be viewed as a “semi-public” offering.

Regulation A is comprised of two tiers – each with its own unique restrictions. Notably, Tier 2 is significantly more popular because it does not require state by state qualification. (See chart below) Offering Limit

Government Qualification Advertising & General Solicitation Non-Accredited Investors Permitted?

Audited Financials Required Periodic Reporting Required

Reg A Tier 1

$20,000,000 every 12mo.

Reg A Tier 2

$50,000,000 every 12mo.

State and Federal (SEC) Yes

Federal only (SEC) Yes

No No

Yes Yes. Annual, Semi-Annual, Current Event

Yes – max 500.

Yes. Investment limited to 10% of net worth

3. Local Securities Regulations

For lenders who raise capital from one state, state securities regulations can be immensely useful. Many states have variations of the federal securities exemptions set forth above. For example, California has California Corporations Code 25102(f), which is essentially identical

to Rule 506(B) of Regulation D but limited to California only.

These regulations are highly effective for raising capital in a single state, but to truly scale and raise money nationally, the federal options above are recommended.

Today, non-conventional lenders, debt funds, and mortgage brokers nationwide have a broader means to raise investor capital at the private level thanks to the JOBS Act. However, selecting the right option can often be a challenge.

Our recommendation is to rely on Regulation D’s Rule 506(B) or 506(C) to establish your initial capital raise, whether it be friends and family or high net worth investors. From there, a determination can be made – remain within the same investor class or expand to the general public. Thanks to Regulation A, the path to a public offering is much less burdensome.

ABOUT THE AUTHOR:

Kevin Kim is an experienced corporate and securities law attorney with Geraci Law Firm, dedicated to providing reliable and innovative legal solutions.

Mr. Kim focuses his practice on real estate matters, focusing on private placements and other alternative investments for private lenders, real estate developers, and other real estate entrepreneurs. His work includes seeing that clients are compliant with the applicable securities laws, structuring strategic partnerships, and creating innovative solutions. Mr. Kim’s securities and corporate practice also includes preparing complex private and public securities offerings for alternative investment platforms for clients throughout the United States and

abroad. CONTACT: k.kim@geracillp.com (949) 379-2600 | geracilawfirm.com

PRESS RELEASE

the two connection between s les am se a of n tio August 29, 2018 nounced the addi ted Investors today an ec nn Co d an s gic Lo Liquid platforms.

LEASE: Carolina FOR IMMEDIATE RE WILMINGTON, North ri and KANSAS CITY, Missou

generation services ms by adding key lead ste Sy n tio na igi Or an for Lo stors eXchange the industry standard m the Connected Inve fro set ns to loa es inu ess nt oc co pr s to gic le stem for Liquid Lo Lenders will now be ab o the Liquid Logics sy rs. int de X len Ci its m to fro rs tly sto ec ve dir from Connect In ck, loans will move Now, with a single cli . ish fin to rt sta m fro (CiX) processing. quality leads to autoable rich deal flow and en ll wi s gic Lo id qu Li dent & CEO of and says Sam Kaddah, Presi n Connected Investors ” ee rs, tw de be len ce r ou ian all for gic ies ate n ensure rtunit “The str ng more revenue oppo s to loan officers, we ca ati ide cre ov , pr rm m tfo ste pla sy r r ou ou n to matically flow immediate notificatio tes.” u couple that with the yo n he “W s. nal touch within minu gic rso Lo pe id a d Liqu an ck ba ll ca a rrower will receive h in loan that any prospective bo an $3 billion per mont th re mo ng ivi dr is rs quid Logics takes “Connected Investo ected Investors added, w. This alliance with Li nn flo al Co de of – O s ed CT ne e, yn tal Co en am a result, the Marty lving one of their fund lender’s workflow. As so e , th ers o rtn int pa ed g ert din ins len r tly requests to ou what it’s all about.” borrowers are instan closing the loan. That’s suring that high-intent of en ce er, an rth ch fu p eir th ste a se s rea ing th d greatly inc the borrower faster, an rd money loan officer can reach primarily for private/ha ) OS (L are ftw So n tio Based Loan Origina d for the Loan Offixt-Gen FinTech Clouds on simplicity and spee Ne asi s ph ide em ov pr an s th gic wi Lo e id nc . They strive rie Liqu und the borrower expe mlining the loan process aro ea str ilt bu by s es wa ess m sin ste bu sy e eir yees. e th lenders. Th ors and customer emplo private lenders improv est ng inv lpi de he t tsi ou ou ab rs, ate we on rro cer. They are passi not define who users, including bo thing they do – it does st in the market for all be me e so th s ibe are scr ftw de so ly eir on th it workloads, butter, to make ng growth, minimizing are is their bread and ati ilit ftw so fac n to tio d na ate igi dic or de n Although loa solutions company id Logics is a business qu Li re, co its At . are they be. ders the best they can and making private len ogics.com. desk at news@liquidl g tin ke ar m eir th t ac please cont l networking For more information e premier online socia th ing rag ve Le . ing est l esate inv mobile app connects rea h revolution to real est d an tec ity Fin e un th s mm ing co l br cia rs so Connected Investo line marketplace, properties, bulk estate investors, Ci’s on inventory of off-market l st rea va a to d ng ate idi dic ov de pr – ity ies d real estate commun & investment opportunit through Ci’s centralize ers ed rtn nd pa fu g be n din ca len ich th wi wh tate investors g gateway – all of aggregated Crowdfundin an d an es ag ck pa y ert prop rtal, CiX.com. investment funding po ectedinvestors.com. desk at Media@conn g tin ke ar m eir th t ac please cont For more information

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FEATURE

Private Lending IRAs Not-So-Frequently Asked (But Still Very Relevant ) Questions

By Clay Malcolm, New Direction Trust Company

those individual holdings. Just as a retirement account can diversify with multiple stocks, bonds, ETFs or mutual funds, you may hold as many alternative assets in a single self-directed account as you want.

If I have multiple accounts, are my annual contribution limits cumulative or per-account?

This will depend on your account types. Traditional and Roth IRA holders may contribute up to $5,500 per year with an additional $1,000 per year ($6,500 total) if they’re at or above the age of 50. Account holders below the age of 50 are limited to $5,500 per year total. This limit is per investor and not per account. For example, if you’re below age 50 and hold two Traditional IRAs and three Roth IRAs, you may contribute a cumulative total of $5,500 to those five accounts but not $5,500 to each one. To contribute that total, you can divide it however you like: $1,100 to each of them (totaling $5,500), or $5,500 to one and $0 to the rest, etc.

Other account types provide a higher degree of flexibility. If you have a self-directed Traditional IRA and a 401(k) through your employer, neither account contribution limit will impact the other. You could therefore make your maximum allowable contribution to each account if you so choose. However, the tax deductibility of your Traditional IRA contributions may be affected by your 401(k) contributions. In other words, you could still contribute $5,500 or $6,500 per year to your Traditional IRA, but you may not be able to deduct the full deposit amount from your income for tax purposes.

W

hen considering a private lending approach with your retirement plan, several key questions may come to mind. How do I get started? How is this different from what I do with my non-IRA money?

Who can I lend to?

Fortunately, the answers to these questions are fairly straightforward. A customer service-based IRA provider can help you get started; the process of lending your non-IRA money is almost identical to that of lending your personal money; and you can lend to almost anyone apart from your direct linear family or fiduciaries to your account (such as your IRA provider).

Other, more unique questions may also arise, and they certainly warrant attention, as well. Let’s address three less common but valid inquiries about self-directed investing, the answers to which may hopefully address your concerns.

From a private lending standpoint, the answer to this question is a resounding, “no.” Tax-advantaged savings vehicles are designed to prevent this exact situation. If you originate loans with your non-IRA money, your returns will be taxed as income for the year. In a self-directed IRA, those earnings would be completely tax-deferred and available for re-investment or re-allocation at your discretion.

A private lending strategy within your IRA will not trigger taxable events. You can originate new loans and collect earnings without having to pay taxes, regardless of how many IRA loans you initiate or their dollar values.

As long as the applicable cash or assets remain under the umbrella of a self-directed retirement plan, you won’t have to pay taxes on any private lending activities that occur therein.

Will I need separate accounts for separate assets?

Will I have to pay taxes or penalties when I If you intend to originate multiple IRA loans or invest buy, sell or garner earnings on assets within in alternative assets (real estate, precious metals, etc.), you needn’t establish additional self-directed IRAs for my account?

20 Originate Report | October 2018

Consult with your accountant or tax professional for further clarification on your particular situation. Also remember that Roth IRAs are not subject to these deductibility scenarios, as Roth contributions are not deductible in the first place. The true benefits of a Roth are realized down the road, where qualified distributions of earnings can be 100% tax free.

Your individual experience with self-directed investing may elicit other questions, so never hesitate to contact your IRA provider and educate yourself as much as possible.

ABOUT THE AUTHOR:

Clay Malcolm is Chief Business Development Officer at New Direction Trust Company, a custodian of self-directed investment accounts that hold alternative investments.

Mr. Malcolm provides preliminary and continuing education to anyone interested in promissory notes, real estate financing, and other loan structures as assets in IRAs, 401(k) s, and other such tax-advantaged or taxable investment

plans. CONTACT: cmalcolm@ndtco.com | 877-742-1270 (Ext. 113) | www.ndtco.com

You have knowledge. You have ideas.

Let us showcase your voice.

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

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

www.originate.report 21

CITIES TO WATCH

Cities to Watch:

San Diego, California

By Cathleen Yates, Originate Report

“Blessed with a climate than which there can be no better in the world.” – Richard Henry Dana, 1835

22 Originate Report | October 2018

E

arly explorers recognized the San Diego area as a desirable and enviable temperate climate that allowed native populations to thrive, ships to take shelter from storms, and the building of a thriving city (it’s considered the birthplace of California). The average daytime temperature year-round is a mild 72 degrees, and nighttime temperatures rarely go below 50 degrees.

Weather itself is a fine reason to visit San Diego. However, the city today offers a multitude of reasons to visit besides the sun. There’s the sand and the surf, for starters — miles of pristine beaches for water sports.

Downtown is a mecca of nightlife, restaurants and historic architecture. Sprawling Balboa Park is home to 12 museums, 20 gardens, and the world-renowned San Diego Zoo. The U.S. Navy Pacific Fleet and the USS Midway, the largest U.S. museum ship, are anchored in the deep-water harbor.

So what’s not to like?

Must-Visit Locations

An inspirational place to start your adventure in San Diego is Point Loma, a hill above San Diego Bay that provides incredible views of the harbor where Spanish explorer Juan Rodriguez Cabrillo anchored in 1547. The Cabrillo National Monument pays homage to Cabrillo and his discovery with a commemorative statue, museum, and the Old Point Loma Lighthouse. Every September, Cabrillo’s landing is re-enacted during the Cabrillo Festival. To experience the incredible ocean views, take one of two hiking trails along the coastal cliffs. During January and February, it’s a great vantage point for watching migrating grey whales.

The San Diego harbor is also home to the U.S. Navy Pacific Fleet. At Navy Pier, you can board the aircraft carrier USS Midway and tour its museum. A collection of historic sea vessels, the Maritime Museum, features several ships including the Star of India, the world’s oldest active sailing ship, built in 1863. If you’re feeling adventurous, take a high-speed naval history tour aboard the historic Swift Boat PCF-816, or sail the harbor on the San Salvador, a replica of Cabrillo’s galleon. Fleet Week San Diego takes place annually during the fall, featuring public events like Navy ship tours, the Sea & Air Parade, the Coronado Speed Festival and the Marine Corps Air Station Miramar Air Show.

A popular historical, dining, and shopping district is Old Town, the historic heart of San Diego and California’s first settlement. Visit dozens of historic sites and bask in early California ambiance. Mexican restaurants and shopping abound, and for entertainment, check out Cygnet Theatre, which features top talent in cabaret shows and new and classic plays.

Coronado Island boasts some of San Diego’s best beaches, with fine, white sand; gentle surf; and flat, easy access. You can walk, ride a bike, or ride a Segway around the island, and check out the surf dog competition each year in July. Stay at the beautiful Hotel del Coronado, a 130-year-old landmark that hosts many

of its own events, including outdoor ice skating by the sea (November 22 through January 1), a film festival (November 9-12) and a New Year’s Eve gala.

Beaches

San Diego boasts miles of beaches, but the center of the action is in Mission Bay, where water sports dominate.

Jet skis, paddleboards, kayaks, sailboats and powerboats are all available to rent. The latest and ultimate thrill ride, though, is hydro flight, where you soar above the water on a jet board or jetpack. To try your hand at surfing, go to nearby Mission Beach, or any other surfing paradise such as Ocean Beach, Pacific Beach or La Jolla Shores. Summer visitors should take advantage of the warm water. In August, the Scripps Institution of Oceanography recorded the warmest temperature ever in San Diego waters: 78.6 degrees.

Dining

Influenced by ocean life and the flavors of Mexico, San Diego cuisine is fresh, innovative and abundant. Start with locally sourced sushi in Mission Bay at the unassuming but authentic Sushi Ota (reservations recommended). Baja Betty’s on University Avenue dishes up to-die-for street tacos and build-your-own nachos.

Ironside Fish and Oyster in Little Italy serves an incredible selection of raw seafood, including oyster platters to share and rockfish ceviche, plus octopus cooked on a griddle and smoked swordfish toast. In Old Town, sample seafood Brazilian style or Peruvian lamb at Berta’s Latin Cuisine, focusing on dishes from Central and South America and originating from the owner’s family recipes. And Bali Hai on Shelter Island has been serving Polynesian seafood dishes, mai tai cocktails and enchanting bay views for more than 50 years.

Nightlife

The Gaslamp Quarter calls itself a “walkable urban playground” with 16 blocks of 50 bars and more than 10 nightclubs with live music and DJs. Vin de Syrah Spirit and Wine Parlor offers wine tasting, small bites and dancing. Fluxx is a Las Vegas-style club that changes its theme monthly from space-themed storm troopers to Marrakesh-inspired décor and belly dancers. If you’re in town for Halloween, check out the WCKD Halloween and Music Festival, a four-stage interactive extravaganza presented throughout the Gaslamp Quarter on October 27.

Attractions

Culture, science and nature come together in Balboa Park, the largest cultural park in North America. Dis-

San Diego, CA Economy:

• Major industries: Defense, tourism, and technology • Minimum wage: $11 per hour • Cost of Living: 28% above the national average

Housing:

• Median Household Income: $70,141 • Median Home Price: $594,300 • Home Price Change: 4.4% increase • Home Ownership: 53% • Median Rent Price: $2,044

Job Market:

• Forbes List: Best Place for Business and Careers #48 • Unemployment: 4.2% • Job growth: 2.6% • Loan originator average salary: $75,121 cover 1,200 acres of gardens, walking paths, museums, theaters and the world-renowned San Diego Zoo. It’s also home to one of the finest regional theaters in the country, The Old Globe Theater, which produces 15 productions year-round on three stages and an annual Shakespeare Festival.

Upcoming shows include Looking for Christmas (November 11 through December 16), a new musical from country legend Clint Black, and the West Coast premiere of Tiny Beautiful Things (February 9 through March 10, 2019), based on the book by Cheryl Strayed.

At Sea World, get up close with sea animals, ride the roller coasters, and enjoy the shows featuring Orca whales, dolphins, sea lions and even rescued household pets. For an extra fee, you can swim with dolphins, beluga whales and more.

Birch Aquarium at the Scripps Institution of Oceanography features rare and exotic sea life, with an emphasis on coral and seahorse conservation and sea dragon breeding. A new display, Oddities: Hidden Heroes of the Scripps Collections, is a comic book-inspired exhibit that highlights the astonishing adaptations (aka super powers) of ocean species.

Sports/Entertainment

About 18 miles north of Old Town, the fall horse racing season begins at Del Mar Racetrack November 9 and runs through December 2. Place your bets on your favorite Thoroughbred or attend a concert or special event in the off-season.

Petco Park is home to the San Diego Padres major league baseball team. Opening day for the 2019 season is March 29. If you’re in town between baseball seasons, you can participate in The Links at Petco Park, an annual “unforgettable nine-hole golf experience” in which each hole has a theme and players can win prizes, November 7-12. www.originate.report 23

UPCOMING EVENTS

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

Contact Ruby@originate.report for more information.

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

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

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

Innovate 2019: The Up & Coming Trends January 14-15 • Newport Beach, CA www.geracicon.com

California Mortgage Association Winter Seminar February 7-8 • Newport Beach, CA californiamortgageassociation.org/events/

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

24 Originate Report | October 2018

American Association of Private Lenders’ First

CHARITY

GOLF

TOURNAMENT NOVEMBER 3, 2018 BEAR’S BEST GOLF COURSE REGISTRATION 1PM SHOTGUN START 2PM

BENEFITING VETERANS PATH UP

REGISTRATION OPEN $175/PLAYER OR $700/TEAM CONTACT TIM DRAPE AT (913) 888-1250 Includes: Green fees, range balls, cart fees, and 1 nonalcoholic beverage. www.originate.report 25

LOAN HOME

Help Make Dreams Come True TYPES OF LOANS

AN LO M

XI M

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

100K 3M

√

√

√

√

√ 80/30

√

Direct Lender

ATG Capital

www.atgcapitalfunds.com bobby@atgcapitalfunds.com Tarzana, CA

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

400K 3.5M √

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65-70/ 12-18

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Direct Lender

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

1M

N/A

50K 15M

√

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√ 80/30 √

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Direct Lender

Helvetica Group

100K 10M √

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CB Real CALBRE 00388229

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5M

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2018

Direct Lender

26 Originate Originate Report Report || October October 2018 2018

√

Rev. 9.14.18

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

√

* AZ, CA, NV

Direct Lender

JCAP Private Lending

√

*All 50 States

√

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

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

√

CA, TX, WA

Credit Union Lender

Fidelity Mortgage Lenders, Inc.

√

* = states lending in

ACC Mortgage

MA

MI

NI

LENDER

$ U Co mm M L O AN Co erci ns al $ um e Br idg r e Co rpo r Ac at io qu ns/ isi T No tion rusts tes s a / L nd ega Pu De l E rch ve ntit lop ies Re ased me ha nts b/ Bla Re m nk od e Se t Lo eled an co s / Re n no Jo d M va int ort ted Ve ga Fo ntu ge s rei r es g Ot n Na he t i on r als MA XL oa nCh urc to-Va lue he La s (% nd / Te (B mp ) / MA a le Au tom re/ C s/ S X Te rm y o Re otive mm nag (yr erc og s) tai u l (S ial e s /L En ho ot) ter p ta s/ Ga inm Strip s S en Ma t lls Le tatio ) isu ns re Ho (G sp olf it C Mi ality our s xe d-u (Hot es/ M Re se els) ari sid Pr na I o nd e ) Ra ntia per t ustri l ies al nc I n v h Se es a estm lf-s nd en t t Re orag Farm Prop sta e ert s ies u Of rant fic s e

Let lenders know you found them in Originate Report!

TYPES OF PROPERTIES WE LEND TO

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

Let Lenders know you found them in Originate Report!

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

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

TYPES OF LOANS

XI M

50K 25M

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70/3

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www.olympiafin.com Jaronson@olympiafin.com

Direct Lender

Pacific Private Money

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

150K 5M

* CA

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Direct Lender

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

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

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

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√

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

Direct Lender

100K 10M

√

Direct Lender

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

100K 10M

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

65/5*

√

70/5*

√

√

√

√

√

√

* CA

√

√

75/5

√

√

√

√

√

√

√

√

√

√

Direct Lender

50K 50M

√

√

√

√

√

CA, CO, HI, TX, WA

√

√

√

√

√

√

√

√

√

√

√

90/2

√

√

2018

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

3M

Rev. 9.14.18

Sunset Equity Funding

50K

√

* CA

SFR

Patch of Land

* = states lending in

Olympia Financial Mortgage Inc.

SFR

MI

NI

LENDER

MA

MU

M

LO

AN

$ U Co mm M L OA e Co rci N ns al $ um er Br idg e Co rpo r Ac at io qu ns/ isi T No tion rusts tes s a / L nd ega Pu De l E rch ve ntit lop ies Re ased me ha nts b/ Bla Re nk mo e d Se t Lo eled a co nd ns / Re no Jo va int Mort ted Ve ga Fo ntu ge s rei gn res Ot he Nat i on r als MA XL oa nCh urc to-Va lue he La s (% nd / Te ) /M m ( A Au Bare ples tom / C / S X Te rm om yn o a t Re ive (yr me go s) tai g r cia u l l/ L es En (Sho o ter p t) ta s/ Ga inm Strip s S en M t all s) Le tatio isu ns re Ho (G sp olf it C Mi ality our s xe ( H d o es/ Re -use tels) Mar ina sid Pr I o nd e ) Ra ntia per t ustri al i nc l In he ves es Se s a t lf-s nd men t t Re orag Farm Prop sta e ert s ies ura Of n t fic s e

TYPES OF PROPERTIES WE LEND TO

Direct Lender

NATIONWIDE EXCEPT ALASKA, SOUTH DAKOTA, NORTH DAKOTA

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

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

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

28 Originate Report | October 2018

Geraci Law Firm | 949.298.8050 | www.geracilawfirm.com