Originate Report - September 2018

THE OFFICIAL MAGAZINE OF GERACI SEPTEMBER 2018

Cities to Watch:

Seattle

NOBLE CAPITAL Structured to SURVIVE

Industry Spotlight:

Charles Towle Inside

September: Seismic Retrofit Requirements Good News for Flippers Letting Go of Perfection www.originate.report 1

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contents SEPTEMBER 2018

Features

20 W hat Seismic Retrofit Requirements Mean for Lenders and Investors

By Dennis Baranowski, Geraci LLP

22 W hy a Weakening Housing Market Could Be Good News for Fix and Flip Investors

8

By Robert Greenberg, Patch of Land

24 Lend to an IRA..with your IRA

Clay Malcolm, New Direction IRA

Who to Know 8 Profile

Noble Capital

By Cathleen Yates, Originate Report

6

16 Industry Spotlight

Charles Towle

In Every Issue

6 Anthony’s Rules for Success Perfection: The Enemy of Action

By Anthony Geraci, Geraci LLP

13 Industry Job Watch

26

14

14 Get $#!& Done with JT Terrell

Three Business Lessons Learned in 12 Days Off the Grid

By JT Terrell, Petra Coach

26 Cities to Watch

Seattle, WA

28 Upcoming Events 30 Loan Home

20 www.originate.report 3

4 Originate Report | September 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

Letter from the Editor

Art Director

CONTRIBUTORS Dennis Baranowski Anthony Geraci • Robert Greenberg Clay Malcolm • JT Terrell Cathleen Yates

FOUNDING UNDERWRITERS

Welcome to Geraci’s Originate Report Magazine- September Edition!

As always, we want to thank you for reading the latest edition of Originate Report and supporting the excellent companies who write and advertise with us each month. This time we are highlighting the executive team at Noble Capital,

one of the few groups who survived the 2008 crisis; read their incredible story to find out how they made it through without sacrificing their core values and

identity. In addition, don’t miss September’s Industry Spotlight, Charles Towle

MARK HANF President, Pacific Private Money

at US Capital Global, and his meteoric rise in the industry.

We hope the articles in this edition inspire you, and cause you to think differently

about the path you take to achieve your goals. If you

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

would like to contribute content or advertise with us, do not hesitate to reach out!

Max

Max Berger

Originate Report Content Editor

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

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

GERACI CONFERENCES www.geracicon.com

www.originate.report 5

ANTHONY’S RULES FOR SUCCESS

Perfection:

The Enemy of Action

By Anthony Geraci, Geraci LLP

S

triving for excellence is one of our core values, and one of the pillars that make us who we are at Geraci. But sometimes, in that pursuit of excellence, some people want and demand perfection. Have you ever read the definition for perfection? It’s fairly simple: Perfection (noun): The condition, state, or quality of being free from all flaws or defects.

Free from all flaws or defects? That’s not a definition of reality; that’s a definition of insanity.

“I would have written a shorter letter if I had more time.” Abraham Lincoln (yes, he really said this.)

“Perfection is not attainable, but if we chase perfection we can catch excellence.” Vince Lombardi

Imagine this: You’re working on your investment proposal or sales report, and you’re happy with it, but it’s not perfect. You want more information to support your point and you won’t rest until to find it. You want to ensure there are zero flaws, but at what cost? You spend hours of frustration and stress without a corresponding upside. Did all that effort move your needle?

So why do we aim for perfection? To avoid negative feedback. To provide a reflection of ourselves in the

6 Originate Report | September 2018

project, or at least the way we want to be perceived.

And sometimes to avoid the more demanding, complex and unpleasant portions of a large project. Sometimes perfection is a mask for another issue: procrastination.

The real problem is this: Perfection is the enemy of action. In the drive for perfection, there is no exponential improvement for the time invested. Rather, it’s a completely negative return. Your client could admire your perfect proposal, but that admiration may turn to disappointment if the inclusion of every detail prevents you from meeting a deadline. If you consider productivity to be man’s primary purpose, do yourself a favor and get out of your own way. Done is better than perfect.

Today, if you feel the need for perfection, ask yourself these questions:

Will the customer care?

Perfection is not always rewarded by the customer. Will your customer be impacted by the detail you put into your work? Will they notice? How will it affect your relationship? Perfection can also be viewed as inflexibility, and that may be the last impression you’d like to leave with your customers.

Will it improve the product in proportion to the time you invested in it?

The product could be your loan documents or simply the act of client communication. Software developers used to delay release of a product to get all the bugs out.

Now, given the speed with which software is created, it’s more beneficial to push the product to market, receive feedback from users, and continue to improve the product and release new versions. Separate perfection from production and consider the quick-to-market approach as a competitive advantage.

Could I use that time to make a bigger impact elsewhere?

If the task you’re working on is so small that it doesn’t matter, it may not be worth doing. Could you use that time to take care of a client and understand their wants and needs? Get new clients in the door? Or think about an innovative way to improve efficiency? Focus on what’s best for the company, product or service, and bring that idea to reality.

Time is precious. You have 86,400 seconds in a day.

What are you doing with yours?

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

Noble Capital Since 2002, Noble Capital has provided funding for residential real estate rehab and new construction projects across the state of Texas. The company’s investment

model offers substantial growth and predictable income to

its network of private lenders and fund investors without the high level of volatility inherent in the stock market. All

investments are supported by Noble Capital’s construction control and loan servicing professionals, mitigating risks associated with other investment models.

As a young entrepreneur, Jadon Newman learned about the private lending industry during a family dinner. He

was intrigued by the intricacies of finance and the success of an uncle in the industry, and so inspired he envi-

sioned his own future in private lending. After learning the ropes from his uncle and various private lending groups

in Southern California, he was determined to create his

own company. In Austin, few competitors existed on the

landscape. Newman thought Texas was ripe for the private

8 Originate Report | September 2018

A Texas-Based Story of Survival.

Profile by Cathleen Yates, Originate Report Staff

lending industry and launched Noble Capital, one of the first companies to offer private lending in the region.

Since its launch in 2002, the company and the industry have blossomed. Noble Capital is not the only private lend-

investors engaged in the model. That, says Newman, is the beauty of asset-based lending and the primary reason in-

vestors placed their trust in the company: Creating a track record and having security with collateral.

er in town anymore, but Newman still sees the company as

The company quickly increased to 30 employees before the

practices. It is not simply a private lending firm; it mar-

a sobering time for Newman and his staff, and presented

a pioneer in its business model and lending and investing kets itself as an alternative investment firm specializing in

private lending, retirement strategy and real estate with a $150 million portfolio. Noble Capital has built an exten-

financial crisis of 2008 hit. At its impact, the crisis created an obvious fork in the road: folding the company or pressing forward with a revised set of company ideals.

sive network of private lenders and real estate profession-

Newman’s choice, after consulting with staff, was to press

the most stable real estate market in the country. With les-

and counselors, the company did not file bankruptcy. “We

als in Texas and is rapidly growing its portfolio backed by

sons learned from the 2008 financial crisis, Noble Capital

aims today to be a leader for others to emulate and learn from — even if those “others” might be competitors — to improve industry standardization and ethics.

Great Beginnings

To prove the business model was viable, Newman enlisted friends and family as initial investors, and later found addi-

tional investors by advertising in business periodicals and radio. With the first deeds of trust used to secure the loans,

forward and not give up. Against the advice of attorneys stayed true to ourselves,” says Newman. “One thing I am so proud of is we didn’t change our name. We didn’t re-

invent ourselves. We’re still Noble Capital. They say you can’t trust a man without a limp; the same is true for a

company because they’re not battle hardened and tested by fire, but we are. We stood up and faced the test and we’re very grateful we were able to get through it. We had a lot of help and a little luck.”

Profile: Noble Capital continues on pg. 10

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Profile: Noble Capital continued from pg. 8

Newman then brought in three partners: Chris Ragland as

The strategy for survival was to transform the company

officer, and Grady Collins as chief financial officer. “That’s

into something far more nimble, incorporate the ability to

respond rapidly to the marketplace and create additional capital resources.

First, the company decided to stop providing commercial loans and instead concentrate on one asset class: residen-

chief operating officer, Romney Navarro as chief lending been an amazing ride, because now I’ve got four of us giving it 100% every day and we have a special partnership,”

says Newman. “Not all partnerships have the dynamics and

the strengths that we bring to the table as the four owners of Noble Capital.”

tial investment property. Second, the company completely

After the crisis, Noble Capital found itself as one of the

REO strategy.

are private lenders were also private lenders before 2008,”

eliminated its debt. And third, the company dialed in its

‘“Very few operators today that are private lenders were also private lenders before 2008,” explains Chris Ragland, chief operating officer. “Because of that, we have a lot of lessons we bring with us from that time.”’

“We are 100% unleveraged today which is going to come across as very surprising to readers of this article,” says

Newman. “We built our $150 million portfolio unleveraged. That’s one of the remarkable things we’ve been able to do.

“REO strategy is really an ugly part of the business. It’s

one thing to be a desk jockey and shuffle papers and write loans from the office; it’s another thing to roll up your

sleeves and manage broken assets. We had to learn the hard way the best formula to deal with REOs, and that’s come through trial and error for sure.”

few who made it through. “Very few operators today that

explains Chris Ragland, chief operating officer. “Because of

that, we have a lot of lessons we bring with us from that time. It was not your normal run of foreclosures but most

of the portfolio was in trouble. How do you operate a busi-

ness when you don’t have revenue coming in? A lot of that

comes down to your relationship with investors…we relate to the investors, the guys on the ground, the flippers or the new construction or loan originators. We understand their business because we’ve done it too.”

Current Business Model

What started as a deal shop became much more. The last 16 years have been spent perfecting the business model

company is still hamstrung by lack of capital despite the

far beyond anything we imagined when we started doing

“We have not been willing to change who we are or our

when no existing model fit. “While it’s still not perfect, it’s ‘deals,’” says Romney Navarro, chief lending officer who runs Noble Capital’s lending company, Streamline Fund-

ing. “It’s no longer a deal shop; it’s an operating business

with systems, people, processes, platforms, you name it.

Others can do this, but they need to be disciplined and put a lot of time into it.”

Raising capital from high net worth individuals always has

been and will be the core of the company, but it has devel-

oped other sophisticated vehicles that skew more toward wealth building for investors and borrowers: the syndicat-

ing of loans and loan strategies; a fund on an institutional

underwriting profile or borrower clientele,” says Newman.

“When big institutional investors come along and want to provide significant capital to us, it’s been tough to negoti-

ate with these guys and maintain our destiny. We have to fight to maintain control. As we’ve passed the $100 mil-

lion mark, we’ve started to earn the street credit and the credibility to be looked at as an authority, and we’re just

now opening conversations with much larger institutional partners who are beginning to see value in us and not try

to change who we are and how we operate. This helps us continue to grow and triple down on our success.”

Additional challenges are inherent for newcomers who by-

“We are unique in that we don’t have one capital partner,”

own random processes, and the real estate industry suffers.

says Ragland. “We’re able to have different capital partners that complement each other and help us grow the business in ways that wouldn’t be possible otherwise.”

The company’s growth over the years sparked the creation of additional internal business units that provide predict-

able income and greater financial security for its clients:

its private lending, retirement, and real estate divisions.

This wealth management approach encapsulates not just

one ideal but a lifelong plan that includes private lending and real estate as part of an individual’s investment and retirement portfolio.

Industry Challenges

The growth of the industry has led to significant challenges

10 Originate Report | September 2018

amount of money raised and the size of their portfolio.

platform, Fidelity, that is known for generating substantial

returns; and a partnership with investors on Wall Street.

Jadon Newman, Founder & CEO

Chris Ragland, Chief Operating Officer

for Noble Capital and others. Since the market crash, the

pass the established ethics and standards and create their This is where the Noble Capital team sees itself as a guide for newcomers. “The new competition coming into the marketplace that doesn’t really understand the business,

they structure or price deals wrong, bad things end up hap-

pening on those deals or in the marketplace because they don’t know; they just don’t get it,” says Ragland. “What happens to businesses like ours that have been around a while — and we’re very predictable in terms of our structure and pricing — but the marketplace gets disrupted by a new entrant who hasn’t learned any of these lessons. They

end up getting burned. It’s a really interesting struggle to

find balance in the marketplace and still structure our deals

in a way where we know that if things got really bad, we can survive.”

Profile: Noble Capital continues on pg. 12

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

Profile: Noble Capital continued from pg. 10

meeting when we’re two miles away.’ That’s the spirit. One

to the levels of pre-crisis and keeping up with the popula-

Some of these competitors are fresh graduates of a crash

stand to benefit by helping each other.”

will talk about Texas and Austin in particular as being part

course in private money lending and they expect to get

of the unique things to our industry is how much we truly

rich quickly. These courses may cost upward of $30,000,

The partners are enthusiastic about educating their peers

cation than experience provides. After one or two failed

One such alliance is Impact Hub’s Affordable Housing Ac-

but the partners believe they provide far less of an edudeals, they exit the market and leave in their wake a negative reputation for the industry. This is where the desire

for industry leadership comes in. “We’re big on educating; we want people to be successful,” says Ragland. “Yes, we’re

trying to set the table for these guys, so they don’t fail. That very fragmented marketplace — the onesie-twosie guys —

exit the space after one or two unsuccessful deals. As an industry, we could be gaining so much more market share

if we give them the tools and the resources. So, it’s not

and seeking ways to form alliances to further that ideal. celerator, in which Noble Capital and other Austin busi-

nesses partnered with community innovators to help solve the affordability crisis in Austin for low- and middle-income residents. Issues targeted included zoning laws, per-

mitting processes and supply and demand of real estate.

Noble’s participation was to provide insight into the real

estate and private lending industry to help guide the community in creating resolutions.

only friendly, but we’re literally extending a helping hand

Noble Capital has been a financial sponsor since the accel-

bad deals written by onesie-twosies.”

support for its participants. Additionally, Noble works di-

so people like us don’t have to suffer the consequences of

To further influence ethical practices, Ragland serves as a member of the education committee of the American

Association of Private Lenders. The organization’s goal is

to create ethics-based business practice standards for this

erator’s inception. The company also provides mentoring rectly with previous, current, and prospective accelerator

members to provide alternative financing options that are

aimed directly at providing additional housing inventory in Austin and the surrounding marketplace.

burgeoning industry, and AAPL does this by providing

Affordable housing is important to Noble Capital because

tification program.

company gives preference to borrowers who are revitaliz-

continuing education content for the Private Lender Cer-

At conferences, the partners often huddle with market competitors to share knowledge and information. “And it’s not people from out of our service range,” says Ragland,

“it’s people who work down the street from us. And we joke about it. ‘We came all the way to Vegas to have a

its employees, family and friends all live in Austin. The ing housing stock in the high-demand, lower-price range by structuring its deals to take on more risk in the investment.

Despite the housing shortage and increasing prices, the

partners see great things ahead for the company and the Texas market. In March, the company received the issu-

ance of its CUSIP Securities Identification and subsequent listing on Fidelity’s alternative investment platform. This

development makes the company’s investment fund more

broadly accessible to financial advisers and their clients nationwide. “If you’re a financial adviser, and you’re look-

ing for an alternative real estate bucket for your clients, you can put your client in this fund through the Fidelity

because a bubble is something that bursts. What Texas has

created is an expanding economy that is requiring an expanding workforce, and the economy is expanding faster

than the workforce, which is creating the increased value in real estate in Texas. How long can it go? No one should be able to predict that.

“One of the unique things to our industry is how much we truly stand to benefit by helping each other.”

-Chris Ragland “There are so many jobs here, but for people moving here,

there’s not enough inventory. And that’s the driver not only behind the increase in values, but also in our industry. That’s what is creating the demand for fix and flips,

and infill development where we’re creating density where density was not present before.”

Noble Capital intends to grow along with the state. The company aims to grow its $150 million portfolio to $500

million and eventually identify other markets around the

country to enter. “As we become more institutionalized and looked at as one of the top national players,” says Rag-

land, “we’re preparing ourselves to go outside the state of

Texas and that’s part of our strategy: to figure out how to

make that happen in an efficient way where it’s going to be a win for the industry as whole.

Adds Newman, “We are very blessed to be in the heart of

Texas; our headquarters are in Central Texas in Austin.

So absolutely the four big cities — Austin, San Antonio, Houston, Dallas — all major markets all within a 2-3 hour

drive, is a very dynamic marketplace. We are grateful to be in that market.”

What lies ahead for Noble Capital is more forging ahead of

our fund.”

ating the next level of thought for investors and proving

For the next few years, Texas is poised to maintain its

strong market. It was the last to go into the recession and the first to come out. The state is one of the fastest-grow-

ing populations in the United States and has three of the top 10 fastest-growing markets. With a low unemployment

level, Texas is creating more jobs than the workforce can fill.

“The good news in Texas is we have a lot of land, we can

build fast, and new construction levels are just now getting

12 Originate Report | September 2018

of these bubbles, and bubble is a poor word to choose

platform and make money on it,” says Newman. “It’s an interesting way for us to scale and create more access to

Romney Navarro, Chief Lending Officer

tion that’s coming to Texas,” says Ragland. “A lot of people

its own blueprint. With retirement planning, they’re crethe alternative model: that private lending is the most forgiving and rewarding investment and should be a staple

among retirement plans. With private lending, the compa-

ny partners believe the open community in which they are

inspiring, sharing and empowering each other will result

in a stronger industry. And as long as Texas has jobs, the company will focus on filling the housing demand.

Noble Capital’s future looks bright indeed.

CONTACT: To learn more about Noble Capital and its partnership opportunities, contact Romney Navarro, Chief Lending Officer, at rnavarro@noblecapital.com or 512-249-2800.

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14 Originate Report | September 2018

Three Business Lessons

Learned in 12 Days Off the Grid

I

n June 2016, I was lucky enough to accompany my 15-year-old

son and his troop on a rite of passage with the Boy Scouts of America: a 12-day trek at Philmont Scout Ranch in Cimarron,

New Mexico. The trip consists of hiking from 50 to 120 miles, based on the group’s level of expertise. This is not car camping. This is “carry

all of your food/equipment/clothing/shelter/water in your 60-pound pack” camping. We were set to hike and climb through seriously re-

mote, high-altitude peaks in the southern Rockies and be prepared for

encounters with bears and mountain lions. But the part that scared me the most wasn’t the wild creatures; it was leaving my smartphone at base camp. I hadn’t been “out of office” since the late 1990s. This was

more than I bargained for and certainly more hard-core than I thought it would be when I signed up. With this new, lemon-filled reality facing me, I decided to make lemonade and see if I could glean some wisdom from my newfound — but temporarily challenging — existence.

Fast-forward 12 days. I learned a lifetime of lessons during our trek,

including how to build a team —and a business. Here are the three main lessons I learned:

Lesson 1

In a world of quick convenience and fail-fast start-ups, sometimes

the long way is the best course of action, with strategic planning,

segmented growth and deliberate moves. My fellow Scout dads,

who mapped out our adventure, rented vans for our four-day drive from our home base in Nashville to New Mexico and scheduled stops each night:

Start: Nashville, Tennessee — 597 feet above sea level Night 1: Fort Smith, Arkansas — 1,201 feet Night 2: Amarillo, Texas — 3,605 feet

Night 3: Clayton, New Mexico — 5,056 feet

By JT Terrell, Petra Coach

Lesson 2

Tiny problems are often easy fixes if you identify them quickly.

Don’t let your anxiety over the fallout keep you from correcting the is-

sue. Take the time to ask: What is the “tiny pebble” in your organization?

After three days in the back country, we made our ascent to Apache

Springs, which consisted of a five-mile hike at a 10%-plus grade. As we started out, the waist buckle on my backpack broke. This was critical,

because almost 60 percent of the weight of the pack rests on the waist

and pelvis when it’s working properly. When it’s not working right, it is incredibly painful and difficult to carry. I worried about the rest of the trip. I envisioned spending nine more days hunched over and injured. I

struggled for more than two hours with (what seemed like) the weight of the world on my shoulders, and when I finally stopped and took off my pack, I found a tiny pebble in the buckle system. Once I removed it, the pack went back to normal.

Lesson 3

As in business, the conventional wisdom of trekking dictates that

the more difficult the trek, the more transformation you can ex-

pect to see in each team member — and yourself. If goals previ-

ously set are being crushed, regroup and reset more aggressive targets.

If targets are missed, explore the failure for learning points and move on. A week went by, and our crew got leaner and meaner every day.

We started to cover ground faster and more efficiently. We even started

to look for the most challenging routes to our designated campsites. In

one such instance, we dropped our packs to summit a peak, and during the descent, an unexpected cloudburst not only drenched us but also washed our packs down the mountainside. Some boys cried and some

were angry, but there was no blame or harsh words — they all worked together to get back on track.

Night 4: Cimarron, New Mexico — 6,430 feet

“Already broken of our expectations, we look forward to what is around

My first thought was, as a super-smart and ultra-efficient business

be taken….” I wrote that in my journal at 3:45 a.m., on the final day

coach, “Why not fly into Denver and drive the last four hours to Philmont? Do these guys have nothing better to do? Am I missing some-

thing?” It turns out, yes, I was missing the point: The length of the drive

was important. Crews that flew into Denver and then drove the four

hours to base camp experienced altitude sickness during the first two days in the back country, and they could not compete with the crews

of long-distance drivers who spent nights sleeping in and acclimating to the altitude.

each turn. There is no good or bad, just work to be done, just steps to

of the trek just hours before I summited my last peak at sunrise then marched back down to basecamp.

I’d lost 18 pounds, grown a beard

and missed 1,167 emails. The fun-

ny thing? When I sat down to begin

answering them, I couldn’t help but

stare into space and daydream about which mountain I would tackle next.

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

JT Terrell, Monthly Columnist

www.originate.report 15

SPOTLIGHT

Industry Spotlight:

Charles Towle

Managing Partner, US Capital Global

16 Originate Report | September 2018

S

ince joining US Capital Global in 2006, Charles V. Towle has significantly contributed to the firm’s growth into a leading private financial group for small and medium-sized businesses globally. As Managing Partner, Mr. Towle oversees 50+ banking professionals in addition to the firm’s established affiliates and institutional investors. During his tenure, Mr. Towle has overseen the origination and closing of over $6 billion in transactions. Mr. Towle is also the Division Head and licensed principal of US Capital Global Securities, LLC, a FINRA-registered broker-dealer affiliated with US Capital Global.

Originate Report: How did you first get into this business?

Charles Towle: Interestingly enough, at an ashram in India. I was taking a break from a financial role in the charity sector, when I first met Jeffrey Sweeney there.

Jeff was already well-established in banking and finance after founding US Capital Global, and our shared interests and values quickly led to him becoming my mentor, and eventually, my business partner.

OR: What sets US Capital Global apart from other asset management companies?

CT: Our values-based culture and our long-term approach to the business. We believe in doing well by doing good, which means engaging with profitable economic opportunities that also deliver positive social results.

Our clients and investors also enjoy greater stability, as our aim is not only to serve them today, but for the next hundred years! So we leverage innovative technologies and the latest regulations to make sure we stay ahead and continue providing our clients with leading products and services.

“Living life by certain values really enriches your experience of the world, and I like to think it helps to create the kind of growth mindset that makes me good at my job– wealth creation.”

OR: How has US Capital been able to stay in business for so many years?

CT: I would say it is a combination of being dynamic and disciplined. Our creative approach has allowed us to continuously adapt to and engage with the changing environment of the finance sector. But we remain true to our values of doing right by our stakeholders and clients, and that keeps us anchored in grounding principles and best practice. Our success is really built on the tried and true, like staying close to the deal, paying attention to details, and having a deep knowledge of our clients and putting their interests at the center of everything we do. We don’t take shortcuts or make expedient choices based on short-term thinking, because we are serious about the long-term success and prosperity of our clients as well as our own business. And that’s why we’ve been doing so well for over twenty years, and that’s how we’ll continue doing well for decades to come!

Left, Charles Towle; Above, Towle and US Capital Global partner Jeff Sweeney

promise, and we want to see them used to boost investor participation and protection.

OR: How has your team utilized emerging technologies to better serve your clients?

CT: So we have three main pillars that support our business: FinTech, RegTech, and MarTech. We use the latest in ‘financial institutional standard’ secure data rooms for holding client and deal documents, and then managing the viewing permissions and history for that (the FinTech part). And then we make sure our products are not only always compliant, but designed to actively engage with the latest regulatory developments, such as the general distribution of private securities (the RegTech side). Last but not least, we use the latest in CRM technology as well as digital PR and social media tools to reach our customers and monitor engagement, so that we can keep improving our relationship with them (the MarTech aspect). The synergy from integrating these three main components of the business really helps us deliver greater value and services to our clients.

OR: What are some of the biggest challenges the sector faces?

CT: We are seeing new players and technologies disrupting traditional finance, although that’s not entirely a bad thing. The uncertain market conditions caused by all of that might not be enjoyable, but we can view them as growing pains as the sector undergoes some powerful changes. I think the key to successfully meeting these challenges is to see this as an opportunity for development at an industry level, and to draw on both past experiences and present optimism to push the sector into the next stage of evolution. It’s easy for us to view it this way at US Capital Global, as our multigenerational team lets us combine years of expertise with a fresh, new way of looking at things.

OR: How is your company reacting to changes in the marketplace?

CT: By embracing the best of emerging technologies and bringing them into our business processes in a way that works in tandem with regulations. Whether we’re talking blockchain, ICOs, or crowdfunding, these rising methods for addressing capital markets hold a lot of

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

CT: Two aspects of my life experience have really led me to this point. The first has been my encounters with great teachers and mentors who have shown me the wisdom of conducting life and business from a place of principles. Living life by certain values really enriches your experience of the world, and I like to think it helps to create the kind of growth mindset that makes me good at my job – wealth creation. I also admire banking dynasties such as the Morgans and Marcus Goldman’s family, and the investing philosophies of Warren Buffet and Charlie Munger, as all of them embody a long-term, values-based way of looking at investing and building a legacy company.

OR: What are some of your goals for 2018?

CT: We’re in an exciting period of growth right now, so there are a lot of goals we’re looking forward to meeting.

We’ve just finished rebranding and presenting all of our activities under one flagship brand, US Capital Global, and we’re working on increasing our fund management activities and strategies, as well as bringing more assets under management. We’re also continuing to build out our Wealth Management division by adding to our excellent team, and we want to complete the roll out of our UK/European office and build on our investor and business partner relationships there.

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

CT: That people and relationships are the most important thing in life and business. If you pay attention, listen carefully and respond responsibly, magic happens, and good things are achievable.

OR: What is one fun fact that most people don’t know about you?

CT: That I play a mean Murdanga (Indian drum), love Bengali poetry, and I am a health food nut who is also a great cook!

CONTACT: charles@uscapglobal.com (415) 889-1022 | uscapglobal.com

www.originate.report 17

FEATURE

18 Originate Report | September 2018

What Seismic Retrofit Requirements Mean for Lenders and Investors

By Dennis Baranowski, Geraci LLP

A

s seismic retrofit programs on the West Coast

The calculation to determine the cost of mitigation

untary programs to mandatory programs,

engineering cost, as well as a margin, if possible, which

begin a new phase of migrating from vol-

lenders, investors, and landlords are

scrambling to understand what these programs demand of them.

The first thing that needs to happen is identifying properties in a specific portfolio to determine which will

need retrofitting. Los Angeles offers a link online that

list properties which will require mandatory retrofitting.

Los Angeles provides a map of properties in specific areas that have been scheduled for retrofitting.

Lenders in California will have to research (a) the ex-

would include the total cost of construction, plus the

obtain endorsements protecting the lien position of the

will provide some breathing room during the construc-

amount by the amount advanced.

tion process.

cost of mitigation, the lender should obtain a draw schedule from the owner, or the contractor, to deter-

mine the timing and amount of advances required to pay the cost of the retrofit. Since most seismic projects

will be on a tight timeline, it is expected that the engi-

neering firm will require a substantial payment to begin the first phase.

Lender should monitor the retrofit in order to determine

retrofit. Upon identifying any properties that need ret-

are synching, as well whether all conditions for advanc-

rofitting, lenders should inquire with the property owners concerning their process for completing the required construction.

Learning what is expected from the property owner, is

an excellent way to determine the amount of financing they will need to complete the project.

Typically, a full site inspection needs to be done by lending personnel to see first-hand what needs to be

accomplished. Inspectors will generally make a checklist

recorded deed of trust, as well as increasing the insured

3. The Loan Documents Should Protect LendBesides determining the amount required to cover the er. The loan documents should provide the Lender

tent of their exposure, (b) which properties require retrofitting, and (c) the timeline for completion of the

2. Obtain Title Endorsements. Lender should

whether the draw schedule and construction schedule

es have been met. It is advisable for a lender, especially one that is not familiar with construction and retrofit requirements, to consult with a developer or contractor

that has experience with these projects concerning the draw schedule, construction schedule, inspections, and compliance with funding conditions.

Outside of being mandatory in nature, retrofit related construction and lending should be approached like oth-

er construction loans. Some key considerations include:

broad discretion in making advances to make advances

following a draw request. In addition, the loan docu-

“The calculation to determine the cost of mitigation would include the total cost of construction, plus the engineering cost, as well as a margin, if possible, which will provide some breathing room during the construction process.� ments should require Borrower to comply with construction deadlines established in the loan documents,

as well as ensure compliance with applicable state and federal laws concerning construction and the release and/or handling of hazardous materials at the property.

Although retrofit loans are substantially similar to other construction loans, their requirements will vary from

state to state, county to county and city to city. Before making a retrofit loan it is essential to identify and un-

derstand all state and local laws regarding the financing and completion of these projects. Staying on top of ap-

1. Require an Assignment of the Construc- plicable law and regulations, as well as closely monitorand the timeline for completion. Knowing the schedules tion Contract, Plans, and Permits. The assign- ing the project and the players involved, will reduce the of items that fall in line with retrofitting requirements

imposed by the relevant retrofit program is important when factoring when financing will need to be in place,

and when construction needs to begin to meet those mandatory deadlines.

Once a property is verified for seismic retrofitting, and the lender has identified what mitigation needs to take

place, lender should design a financing package around it, where the cost of mitigation is built into the overall loan package.

ment allows the lender, in the event of default and foreclosure, to continue working with the contractor.

chances of default and increase the likelihood that the project will be a success.

ABOUT THE AUTHOR: Dennis Baranowski has extensive experience in helping banks, credit

unions, mortgage funds, private lenders, brokers, developers, and loan servicers navigate through complex transactions, including negotiation of terms, transaction review, and drafting of documents. Mr. Baranowski reviews, negotiates and drafts custom loan documents, construction loan agreements, loan workout agreements, leases, loan purchase and sale agreements, subordination agreements, intercreditor agreements, hypothecations, loan servicing agreements, investor agreements. He has authored articles on loan purchase and sale agreements, investment in private loans, and loss mitigation after default.

CONTACT:

d.baranowski@geracillp.com | (949) 379-2600 | geracilawfirm.com

www.originate.report 19

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FEATURE

Why a Weakening Housing Market Could Be

Good News

for Fix and Flip Investors

By Robert Greenberg, Patch of Land 22 Originate Report | September 2018

A

recent BiggerPockets’ blog post carried the headline “Why I’ll Never Fix and Flip Houses Again.”

The writer lamented about the HGTV factor: How “reality” TV has made flipping houses glamorous and has misled viewers about potential profits. These TV shows aren’t revealing the true costs of flipping a house, the author says, citing national flipping data and personal experience.

It’s true. House flipping is risky, and the chance of earning a disappointingly weak profit or even losing money is very real although significant ROI is definitely obtainable for experienced flippers.

There are a host of factors out of a residential real estate flipper’s control: interest rates, the economy, house prices, inventory, foreclosures, and even natural disasters. Flippers must have a good handle on costs and know their local real estate market to gauge demand and avoid costly mistakes.

crease of 6.4%, and the 20-City Composite increased by 6.5%, down from the increase of 6.7% the previous month.

Black Knight reports that 32 states saw home price growth slow from March to May, and the Federal Housing Finance Agency said existing-home prices were up 6.4% in May —the smallest monthly year-over-year gain since early 2017.

Sales of existing single-family homes peaked in November 2017 and have declined for three months in a row.

Pending home sales are also drifting lower as are sales of new homes. Housing starts hit a nine-month low in June (down 12.3%), and permits declined (2.2%) for the third straight month as builders responded to high materials and labor costs.

Inventories appear to be climbing in some super-hot markets on the West Coast where prices were rising

We believe when the housing market begins to shows signs of a slowdown, the popularity of flipping among the “HGTV flippers” will quickly wane.

The Latest Housing Numbers

Let’s take a look at some of the recent housing statistics and what effect they may have on real estate investors, homebuyers and sellers.

The one-two punch of rising mortgage rates and rising home prices appears to be putting a damper on the market.

As of early August, the 30-year fixed-rate mortgage was 4.75%, up about 1 point from a year ago. This, coupled with rising home prices, has caused affordability to become a major factor across the nation. This is not just for would-be owner-occupants, but also for real estate investors seeking a strong ROI. Home prices, while still rising, have begun to moderate, according to the most recent S&P CoreLogic Case-Shiller National Index. The 10-City Composite posed an annual increase of 6.1% in May, down from April’s in-

So why is this apparent dampening of the housing market a silver lining for seasoned real estate investors?

Because competition for affordable properties has been intense and inventory levels have been at all-time lows.

That could change in a weakening market. The amount of foreclosure inventory, a key source of property for the experienced investor, is on the rise in some markets and prices on market-rate properties are moderating.

ATTOM Data Solutions reports that 45% of metropolitan statistical areas analyzed posted Q2 2018 foreclosure activity above their pre-recession averages, including New York-Newark-Jersey City (50% above); Philadelphia (42% above); Washington, D.C. (51% above); Boston (19% above); and Baltimore (235% above); Nationwide, filings were down 14% over the year-ago period.

Looking at the first half of 2018, 22 states posted a year-over-year increase in foreclosure starts, including Texas (up 11%); Michigan (up 5%); Arizona (up 1%); Indiana (up 51%) and Tennessee (up 13%).

Widely Available Financing

Here’s why that’s good news for experienced real estate investors: As the amateur flippers exit in droves, competition for available inventory will decline, and many seasoned, experienced investors that have been sitting on the sidelines will re-emerge to take advantage of buying opportunities.

These seasoned real estate investors — sidelined by the lack of inventory at reasonable prices —know how to use leverage to obtain financing that will allow them to maximize profits in a weakening market, and, if necessary, how to profitably manage their new acquisitions as rentals until the market rebounds.

A Silver Lining

Experienced investors, those who have flipped multiple homes and those who may have portfolios of five, ten, or more homes, are also savvy about financing options to extract leverage for new purchases.

to unsustainable levels, and that could bring some much-needed balance to certain housing markets. Seattle had only a 0.6-month supply of homes in December, but that had risen to 1.3 months of supply by June, according to Redfin.

As another sign of a weakening market, the Fannie Mae Home Purchase Sentiment fell in July for the second consecutive month, dropping 4.2 points to 86.5, after reaching survey highs in April and May.

“Home purchase sentiment seems to have reached a plateau, with potential home sellers likely struggling to find a home to buy amid slow supply growth, expectations for rising mortgage rates, and significant home price increases,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. Redfin said its Housing Demand Index fell 0.7 percent month over month to 120 in June driven by a 2.2% decrease in the seasonally adjusted number of homebuyers requesting tours, and a 12.2% decrease in the number making offers on homes from May to June. Year over year, the Demand Index posted its largest decline since April 2016.

Since the Great Recession, a variety of alternative lenders have emerged with a number of them specifically catering to residential Fix and Flip investors.

These experienced investors are learning that some alternative lenders provide speed, efficiency and competitive financing, and are using leverage instead to grow their portfolios more rapidly.

Experienced real estate investors who have the knowhow to operate in a weakening market still have plenty of opportunities, and they may soon have them without distractions from first-time investors.

ABOUT THE AUTHOR:

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

CONTACT: rgreenberg@patchofland.com

www.originate.report 23

FEATURE

Lend to an IRA... with your IRA

By Clay Malcolm, New Direction IRA

A

solid private lending strategy can persevere

Issuing debt to someone else’s self-directed IRA doesn’t

economy has been chugging along and the

ment plans may conduct business with one another in

through any market. The United States

stock market has sustained an all-time bull run, but vol-

atility reared its ugly head in early 2018. The markets have since recovered, but geopolitical circumstances

and notions of “all good things must come to an end” continue to fuel speculation about what tomorrow may

bring. Meanwhile, if you’re a private lender, you may

have managed to avoid the noise and carry on with business as usual.

The dichotomy between the earning potential available through the private lending space and the Wall Street roller coaster may explain the rising number of self-di-

rected retirement investors who supplement their day-

to-day origination activities with private notes in their IRAs or 401(k)s. Real estate investors have begun to

discover the same thing: They can take back control of their financial futures by incorporating the alternative

investment strategy they’ve come to know and trust into

their self-directed retirement plans. In doing so, private

lenders and real estate investors alike have discovered a compelling way to hedge their retirements against the ups and downs of the stock ticker.

Can two market-beating entrepreneurs—a private lender and a real estate investor—work together? They cer-

tainly can, and they needn’t limit themselves to one pool of money or another. A private lender can issue per-

sonal money or retirement money just as a real estate investor can purchase property with personal money or

retirement money, and the two can interact with one another in any combination they see fit.

24 Originate Report | September 2018

mean you have to use the money in your pocket. Retirethe same manner as their holders. If a non-disqualified friend or business partner needs money for an IRAowned property, your IRA may fulfill that loan. Your

account can earn tax-advantaged income through loan repayments, your friend or business partner can tap the real estate market in ways that he or she couldn’t have

without debt leverage, and you both can reclaim control of your retirement strategies through tried and true alternative methods.

“An IRA can indeed pursue financing, though the IRA holder may have a hard time securing financing through a major institution. This is where private lenders can satisfy a growing demand.”

Real estate investors (even those well-versed in IRA in-

vestments) may not realize that a retirement plan can take out a loan to purchase property. An IRA can indeed

pursue financing, though the IRA holder may have a hard time securing financing through a major institu-

tion. This is where private lenders can satisfy a growing demand. A retirement plan may only take out a loan on a non-recourse basis, meaning the investment property

itself is the only possible collateral; the personal money or assets of the plan holder may not be offered as secu-

rity. Big banks aren’t particularly keen to take on such

notes, giving private originators (and their self-directed IRAs) an opportunity to capitalize.

The only real limitations that exist are those that sur-

round all self-directed investments. You may not con-

duct IRA business with disqualified persons, which

include, among others, the account holder (yourself),

linear members of your family tree (children, parents,

grandchildren, grandparents, etc.), the spouses of the aforementioned individuals, and any fiduciaries to the account (i.e. your IRA custodian). We previously men-

tioned friends and business partners, who are 100% fair game as long as they don’t also fall under one of the

disqualified categories. Non-lineal family members like

siblings or cousins are also non-disqualified, so you can still run a family business to a degree if you so choose.

Lending money from your IRA to the IRA of a real estate investor presents a unique possibility for mutu-

al benefit. Your IRA can earn tax-advantaged income

through the methods you’re already familiar with, while your borrower can acquire lucrative a property without having to come up with the full purchase price. Understanding your options is half the battle when it comes

to finding your next financial edge, so don’t hesitate to explore every possible avenue.

ABOUT THE AUTHOR:

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

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

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www.originate.report 25

CITIES TO WATCH

Cities to Watch:

Seattle, Washington

By Cathleen Yates, Originate Report Staff

26 Originate Report | September 2018

S

eattle is often regarded by travelers as one of the most beautiful American cities for its modern and historical architecture, lush green forests (hence the name “Emerald City”), beautiful waterways, surrounding islands and mountains, and the incredible views from nearly every part of the city.

Wherever you go throughout the city, you’ll see a proliferation of coffee houses, live music venues, bars, seafood restaurants and gaming establishments. Seattle is home to many large retail and technology corporations, all of which influence the city’s landscape: It’s home to the first Starbucks, Nordstrom, the first Amazon retail store and the first commercial monorail. It’s also the epicenter of the gaming industry, with 300-plus gaming companies in the vicinity, including Nintendo and Microsoft, and employing thousands. Whether you’re an old-school pinball and arcade enthusiast, or a modern devotee of Mario Bros., you’ll find several outlets to engage your passion.

Must-Visit Locations

If you begin your sightseeing on the waterfront at Pike Place Market, you’ll get a taste of Seattle’s cultural and culinary offerings, so bring your appetite and your wallet. With more than 200 vendors, the market sells fresh produce, seafood, meat, dairy products, baked goods, gallery art and crafts. The variety of specialty foods made locally (Greek yogurt, éclairs) or imported (cooking oils) is astounding. The market is 111 years old and one of the oldest continually operated farmers’ markets in the country.

Nightlife

Seattle has no shortage of bars and live music, and many venues provide arcade games. Try Shorty’s for arcade and video games, frosty cold beer and hot dogs. The Radiator Whiskey at Pike Place Market boasts a specialized collection of bourbon and also serves American food. Lava Lounge in Belltown is a popular dive bar for tropical rum drinks, slushies and shuffleboard.

For live music venues, check out Neumo in Capitol Hill for indie rock and punk bands, hip-hop, country and more. It contains three bars and balcony seating. Kells Irish Restaurant and Pub features live Irish music, traditional Irish food and Seattle’s largest Scotch collection. Catch your favorite sports games here, too. And finally, a storied piece of history lives at the Crocodile, where grunge bands Nirvana and Pearl Jam have played, among many others. Rolling Stone magazine named it one of the 10 best live clubs in the country.

Attractions

No visit to Seattle is complete without a visit to the Space Needle, a 605-foot monument to the 1962

Seattle, WA Economy:

• Major industries: Clean energy, aerospace and defense • Minimum wage: $15 per hour without health benefits • Cost of Living: 27% above the national average

Housing:

• Median Household Income: $84,288 • Median Home Price: $502,000 • Home Ownership: 46% • Median Rent Price: $2,180

Job Market:

• Forbes List: #3 Best Place for Business and Careers • Unemployment: 3.4% • Job growth: 3.4% • Loan originator average salary: $65,825

Also on the waterfront is the Great Wheel, a 175-foot Ferris wheel that extends over Elliott Bay on Pier 57.

The lights are so bright at night you can’t miss it. At the Seattle Aquarium, you can view sea creatures native to the Pacific Northwest. From Pier 52, take a ferry ride across Puget Sound to Bainbridge, Alki or Bremerton.

Alki Beach Park is a great location for a relaxing day trip: have a picnic, rent a kayak, or simply gaze in awe at the Seattle skyline.

Dining

Seattle is a gastronomic delight, and seafood dominates the restaurant scene. At Elliott’s Oyster House on Pier 56, you can feast on fresh oysters for breakfast starting at 11 a.m. On Pier 54, Ivar’s Acres of Clams, launched in 1938, serves classic seafood and fresh local fish. The restaurant’s signature dish, Acres of Clams, gives you one pound of local Manila clams served in a steaming broth of garlic, white wine and butter. At the elegant Art of the Table, you can choose from a three- or fivecourse tasting menu that celebrates the diversity of locally grown produce. The menu changes based on seasonal produce availability. For casual upscale American food, try Joeys Lake Union in Bellevue. For a unique experience with live performance, The Pink Door is a must. Cabaret shows, trapeze entertainment, live music and hip ambience make this a required stop, along with the to-die-for lasagna and other Italian delights. Be sure to look for the pink door in the alley – there’s no sign.

For breakfast, Biscuit Bitch offers southern-style fixings at three locations, and servers throw out the b-word like they’re tossing biscuits to each other, but it’s all tongue-in-cheek humor. Get there early to avoid the line out the door. Salty’s Waterfront Seafood Grill at Alki Beach boasts an award-winning brunch with traditional breakfast items as well as seafood and overlooks Alki Beach Park.

World’s Fair and Space Age aspirations. As a result of recent renovations, the Space Needle now offers The Loupe, the world’s first and only revolving glass floor, at 520 feet up. Here you can see 360-degree views of the city, Puget Sound, Mt. Rainier and the Cascades and Olympic mountain ranges. Try out the virtual reality bungee jump and eat at Sky City at the Needle Restaurant for an unforgettable experience.

Across from the Space Needle sits the Seattle Center Station, home to the Seattle Center Monorail. Boarding it will transport you one mile to downtown Seattle and the Westlake Center Mall.

Aviation has a long and storied history in the city, also.

Learn about it at The Museum of Flight, which offers 175 aircraft and spacecraft, millions of rare historical photographs, thousands of artifacts and more all detailing the history of flight. Then drive 25 miles north to Everett for the Boeing Tour at the Future of Flight Aviation Center — North America’s only public tour of a commercial jet assembly plant.

If you’re a pinhead — one who lives, breathes and sleeps pinball games — you’ll already know about the Seattle Pinball Museum in Chinatown. It houses a collector’s paradise of 50-plus pinball games from the 1960s to the present with an occasional older antique on display.

Sports

As football season ramps up, catch the Seattle Seahawks at CenturyLink Field in Renton. For the closest seat to the action, purchase a field seat — yes, they’re on the field only yards away from the game — and they come with a slew of VIP perks. The stadium has beefed up its food offerings with a variety of new vendors. For a budget deal, check out the 12s Combo at any Seattle Dog location: two hot dogs, two waters and a bag of popcorn for $12.

During baseball season, the Seattle Mariners play at Safeco Field. Off-season or on-season, you can take a one-hour tour of this premier ballpark for $12 (or $11 for military personnel). Go behind the scenes and view the press box, owner’s suite, dugouts and more.

www.originate.report 27

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.

28 Originate Report | September 2018

American Association of Private Lenders’ First

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LOAN HOME

Help Make Dreams Come True

Let Lenders know you found them in Originate Report!

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

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

30 Originate Originate Report Report || September September 2018 2018

TYPES OF LOANS

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

TYPES OF PROPERTIES WE LEND TO

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

Let lenders know you found them in Originate Report!

LENDER

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

100K 3M

√

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√ 80/30

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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 √

√

√

√

√

√

√

√

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

√

√

√

√

√

√ 80/30 √

√

√

√

√

√

√

Direct Lender

Helvetica Group

100K 10M √

√

√

√

√

√

√

√ 55/30 √

√

√

√

√

√

√

√

CB Real CALBRE 00388229

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

50K

5M

√

√

√

√

√

√

√

√ 75/30 √

www.olympiafin.com Jaronson@olympiafin.com

Pacific Private Money

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

√

√

√

√

√

√

√

√

√

√

√

√

75/2

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

70/3

√

√

√

√

√

√

√

√

√

√

√

√

Direct Lender

150K 5M

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

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

50K

3M

√

√

√

√

√

* CA

√

√

√

√

√

√

70/30

√

√

√

√

√

√

Direct Lender

Patch of Land

√

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

SFR

50K 25M

√

*All 50 States

Direct Lender

Olympia Financial Mortgage Inc.

√

* AZ, CA, NV

Direct Lender

JCAP Private Lending

√

*All 50 States

√

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

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

√

CA, TX, WA

Credit Union Lender

Fidelity Mortgage Lenders, Inc.

√

* = states lending in

ACC Mortgage

√

* CA

√

√

√

√

√

√

√

√

√

√

√

85/2

√

√

√

√

√

√

√

√

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

Direct Lender

100K 10M

√

Direct Lender

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

√

√

√

√

√

√

√

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65/5*

√

70/5*

√

√

√

√

√

√

* CA Rev. 6/19/18

Sunset Equity Funding

50K 50M

√

√

Direct Lender

√

√

√

√

√

√

√

√

√

90/2

√

√

2018

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

NATIONWIDE EXCEPT ALASKA, SOUTH DAKOTA, NORTH DAKOTA

Look for this Lender’s Ad in this issue of Originate Report www.originate.report www.originate.report31 31

32 Originate Report | September 2018