Lender Lounge with Kevin Kim Kevin Kim

In this concluding episode of Season 4, Kevin Kim reflects on the insights gained from our guests and addresses common questions from our listeners, particularly those new to private lending. Kevin discusses licensing for private lenders, emphasizing the variation in requirements across states and the importance of compliance and understanding securities laws, even when raising funds from family and friends. He also explores the challenges and opportunities of raising capital from international investors and the intricacies of fractionalized loans. He shares his observations on the entrepreneurial spirit, discipline, and focus he witnessed in interviews throughout the season. Kevin highlights the importance of adding value to the marketplace, creating a strong team culture, and maintaining financial discipline to ensure the longevity and success of your private lending business.
 
Kevin Kim leads Geraci LLP’s corporate & securities practice. His expertise lies in fund formation, private placements, and other securities offerings for private lenders, real estate developers, and investors of all sizes. Kevin is also the lead instructor for the American Association of Private Lender (AAPL)’s Certified Fund Manager courses, where he teaches mortgage fund managers throughout the United States on fund management and securities laws. And, of course, he hosts the Lender Lounge with Kevin Kim podcast.
 
Key Topics:
 
[00:01:30] Kevin answers frequent questions he receives as a private real estate lending lawyer specializing in corporate and securities law
[00:01:40] FAQs on licensing in private lending
[00:04:13] FAQs on raising money from family and friends
[00:06:20] FAQs on raising money from international investors
[00:08:05] FAQs on fractionalized/co-lending/multi-beneficiary loans 
[00:10:45] FAQs on being successful in private lending
[00:14:40] Kevin talks highlights and takeaways from Season 4 of Lender Lounge 
[00:16:22] Embodying the entrepreneurial spirit in private lending
[00:20:46] Maintaining focus and discipline in business operations
[00:24:02] Cultivating a positive and value-driven team culture
[00:25:55] Positivity in the marketplace today
 
Links
 
Learn more about Geraci Law Firm at https://www.geracilawfirm.com
Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at https://www.geracilawfirm.com/lender-lounge-podcast
Subscribe to the Geraci Law Firm newsletter at https://www.geracilawfirm.com/sign-up
Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube

Beth O'Brien, a dynamic leader and innovator in the private lending industry, joins Kevin Kim on this episode of Lender Lounge. With her rich background in law, real estate, and securitization, Beth currently spearheads Encore Finance Capital. Her journey encompasses an impressive trajectory from working at renowned institutions like Goldman Sachs and Citi to pioneering her own private lending ventures. Beth's strategic insight and deep understanding of the residential and commercial real estate sectors empower her vision at Encore. This conversation expands on the nuances of private lending, the challenges of market volatility, and the evolution of securitization in private lending.

Beth O’Brien is the founder and CEO of Encore Finance. She has over 30 years of experience in almost every aspect of the mortgage industry, as both a principal and an advisor. She has overseen more than $25 billion in transactions and has won numerous industry awards. Beth previously founded CoreVest, serving as CEO and growing the company into the nation’s premier private real estate lender. Before that, Beth was Executive Vice President at Auction.com, where she ran residential capital markets, and was President and Co-Founder of AuctionFinance.co. Beth also held prior positions in RMBS trading and securitization at Citigroup and in Real Estate Private Equity at Goldman Sachs. Beth holds degrees from the University of Pennsylvania and Georgetown University Law Center.
 
 
Key Points
 
[00:01:00] Beth's journey from lawyer to private lender
[00:03:35] Pioneering institutionalization in private lending and the evolution of the market
[00:05:59] Encore's approach to lending
[00:07:09] The importance of discipline and consistency in lending practices
[00:10:06] Encore's involvement in construction lending, especially in the build-to-rent space
[00:14:01] Beth's motivation for re-entering the private lending market
[00:16:16] The challenges and strategies in securing the right capital partners
[00:20:38] Insights into the entrepreneurial mindset and the decision-making process
[00:22:35] Finding alignment with capital partners rather than focusing solely on control
[00:29:30] The current state of capital sourcing in private lending
[00:33:46] Anticipation and impact of rated securitizations in private lending
[00:37:10] Potential benefits of rated securitizations for the investor base
[00:39:32] Market trends and the resurgence of specific loan types
[00:44:13] Future outlook of the private lending market
[00:47:07] The growing interest in workforce housing and revitalization of neighborhoods
[00:51:28] Challenges in financing multifamily properties and the current state of the market
Links
 
Learn more about Encore Finance at https://www.encorefinance.com/
Learn more about Geraci Law Firm at www.geracilawfirm.com
Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at www.geracilawfirm.com/lender-lounge-podcast
Subscribe to the Geraci Law Firm newsletter at www.geracilawfirm.com/sign-up
Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube

Adham Sbeih is an exemplary leader in the private lending industry. As CEO of Socotra Capital, he has built the company to a team of 33 and roughly $500 million in capital distributed across four funds, positioning it as a dynamic lender and trusted partner for their clients. In this episode, Kevin Kim and co-host Nema Daghbandan sit down with Adham to discuss where his lending journey began, the inception of Socotra, and his thoughts on business strategy, team culture, and training security dogs!
Adham’s roots are “all world.” His parents met in Beirut where his mother was working for the Red Cross and his father, a recent Yale graduate, was working as an engineer. They moved to Palo Alto, and then later to Roseville. Adham went to Oakmont High School and later Sacramento State University. He was a 4-time national cycling champion including winning the2000 Olympic Cycling Trials.
In 2003, he started working for Five Star Bank as a business development officer and then later FCI Commercial Capital as a commercial real estate lender. Adham began working on the creation of Socotra Capital in 2007 in anticipation of the credit crunch. He was Toastmaster of the Year in 2008 and past President of his Toastmasters Club.
Adham is on the Sacramento Zoo Board of Directors, and he is an active supporter of the Crocker Art Museum and has been a member of the Director's Circle. Adham’s family values and core beliefs make him a champion in all aspects of life, be it at home, on the bike, racing even now, or in making deals at the office.


Key Topics
[00:01:38] An overview of Socotra Capital and Adham’s professional background
[00:09:18] The inception of Socotra Capital during a casual dinner discussion
[00:17:05] Socotra Capital’s expansion strategy
[00:19:53] Prioritizing collective accomplishments over individual recognition
[00:24:19] Emphasizing detailed performance tracking to drive business efficiency
[00:32:46] Embracing their "Hard Money" identity with pride and humor
[00:35:32] How Socotra Capital's sales-driven approach evolves with constant 1% improvements
[00:44:45] Valuing autonomy and direct investor benefits over debt reliance
[00:48:45] Strategic acquisition of Herzer Financial to diversify into residential construction finance
[00:51:13] Crafting a future-proof business by empowering the next generation of company leaders
[00:54:20] Adham’s passion for training Belgian Malinois dogs
[00:59:54] Leveraging Toastmasters to master the art of public communication


Links
Learn more about Socotra Capital at https://socotracapital.com
Learn more about Geraci Law Firm at https://www.geracilawfirm.com
Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at https://www.geracilawfirm.com/lender-lounge-podcast
Subscribe to the Geraci Law Firm newsletter at https://www.geracilawfirm.com/sign-up
Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube

In this episode, Kevin Kim engages in a dynamic conversation with Matt Podesto and Brock VandenBerg, two successful private lenders who have taken the leap into fund management. From the early days of local hard money lending to the influx of institutional capital and white label programs, our guests provide valuable insights into the changing landscape and how it has affected the present. They emphasize the importance of proper underwriting and servicing while cautioning against entering new transactions without sufficient knowledge. Matt and Brock also share their invaluable personal experiences, mistakes made, and lessons learned, offering an inside look into their journeys. They dive into the challenges of scaling a lending business, the significance of segmenting functions, the importance of choosing the right partners, and the need for good service and ethical lending practices in the industry. Get ready to dive deep in this captivating episode of Lender Lounge.
Brock VandenBerg established TaliMar Financial in response to elevated uncertainty within the banking industry and to provide an innovative alternative to the restrictive practices of traditional lenders. With more than 14 years of experience in real estate finance, Mr. VandenBerg has earned the trust and respect of a strong network of clients and business partners. Mr. VandenBerg’s experience includes serving as Vice President of KeyBank’s Private Equity Group, where he assisted in funding more than $200 million in mezzanine debt and joint equity investments, and three years with the FDIC, where he supervised the orderly dissolution of failed financial institutions and was responsible for the sale of more than $500 million in performing and non-performing loan assets on behalf of the FDIC.
Matt Podesto has been involved in real estate since 2016, where he initially partnered with other investors to fix and flip properties throughout Texas. In 2018, Black Label Capital was founded to deploy personal capital on the side as a true private lender while still being involved in renovations. After gaining the attention of several investors, Black Label Capital eventually evolved into a day-to-day operation deploying personal and investor capital. As the CEO and Fund Manager, Matt manages the debt fund, asset management, loan sales, construction draws, marketing, capital raising and investor relations. Matt is also a former U.S. Marine Corps Scout Sniper, serving several combat deployments overseas, until being Honorably Discharged in 2009. Matt continued his service overseas for the next 7 years, providing Diplomatic Security for the U.S. Department of State, and most notably serving on the U.S. Ambassador's Protective Detail in both Iraq and Afghanistan.
 
Bullet Points
[00:03:11] Matt and Brock explore their entrepreneurial journeys
[00:05:19] A lottery winner's successful transition into private lending
[00:13:18] High net worth individuals and private lending strategies
[00:17:50] Strategies for segmenting business, outsourcing specialized aspects, and employing knowledgeable people
[00:21:28] Local lenders are adapting and thriving against growing national competition
[00:25:02] Recent transformations in private lending shifting focus from hard money lending to diverse practices
[00:29:57] Texas's lending landscape
[00:31:42] Borrowers' increasing need for private lenders to fulfill specific requirements
[00:36:10] Exploration of capital management, loan strategies, nationwide scalability, and market and portfolio construction
[00:41:39] Investors uniting and transitioning seamlessly into a fund model
[00:43:23] Successful fund launch with trustee investors and accomplished transition
[00:49:16] Wisdom and advice for newcomers to the lending industry
[00:53:50] Friendly competition, abundance mindset, camaraderie thriving in the industry
 
Links
Learn more about Black Label Capital at https://blacklabelcapital.com/
Learn more about T

The leadership at Geraci LLP collectively has decades upon decades of private lending industry experience. For this episode, Kevin asked Geraci’s seasoned professionals to offer their foresight into the private lending industry for 2024 – what does the industry need to know as we head into the new year?

Kevin and the Geraci team explore anticipated economic trends, such as preparing for potential litigation challenges and strategizing for effective hiring in the evolving market landscape. They also delve into innovative lending practices tailored for the year ahead, emphasizing the necessity of rigorous risk management, stringent compliance protocols, and more.

This episode features Anthony Geraci, Nema Daghbandan, Melissa Martorella, Dennis Baranowski, Jennifer Young, and Steven Ernest.
 
Key Topics
[00:01:20] Litigation and bankruptcy predictions
[00:03:25] The continuation of trends from 2023
[00:05:23] Recession predictions and the likely persistence of high-interest rates
[00:06:48] The shift toward balance sheet lending and the necessity for creative loan structures
[00:08:45] The importance of proper loan underwriting and compliance
[00:13:08] Managing business risks and capital demands
[00:17:13] Advice for new market entrants in private lending
 
Links
Learn more about Geraci Law Firm at https://www.geracilawfirm.com
Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at https://www.geracilawfirm.com/lender-lounge-podcast
Subscribe to the Geraci Law Firm newsletter at https://www.geracilawfirm.com/sign-up
Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube

For this episode, our host Kevin Kim welcomes industry experts Erica LaCentra and Rocky Butani for a deep dive into the nuanced world of private lending marketing. They highlight the importance of industry conferences and share insights on how emerging companies and entrepreneurs can smartly use marketing to stand out in a crowded field. With a focus on the power of content marketing, targeted email campaigns, and maintaining transparent communication in challenging times, Erica and Rocky offer strategic tips for building brand recognition, nurturing relationships, and succeeding at industry conferences. Settle in as these industry-known marketing experts delve into the practical and technological facets of marketing within the private lending sector.
Erica LaCentra is the Chief Marketing Officer at RCN Capital, one of the largest direct private lenders in the United States. She is responsible for planning, developing, and implementing RCN Capital’s strategic marketing plan. Since joining RCN in 2013, her efforts have rapidly expanded RCN’s customer base and elevated the company to a national brand.
Rocky Butani is the Founder and CEO of PrivateLenderLink.com, a site where brokers & investors find direct private lending companies, and learn valuable insights into private lending. He founded the company in 2010 and has developed relationships with hundreds of companies in the private lending industry.
 
Bullet Points
[00:04:37] Marketing tips for small lending companies
[00:10:38] Website, CRM, consistency crucial for marketing success
[00:13:21] Marketing is becoming more technical and data-centric
[00:20:02] Email marketing, drip campaigns, content marketing, outreach
[00:24:07] Valuable content marketing and email marketing
[00:32:51] Purposeful marketing is essential for success
[00:35:52] High volume of content that lacks value and purpose confuses your audience
[00:45:05] Who excels in marketing and why
[00:48:50] Business development and conference attendance
[00:54:29] Marketing and branding help establish credibility, leading to successful in-person networking and deal closures at conferences
[01:01:29] Networking events essential for resources and connections
 
Links
Learn more about RCN Capital at https://rcncapital.com/
Learn more about Private Lender Link at https://privatelenderlink.com/
Learn more about Geraci Law Firm at https://www.geracilawfirm.com
Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at https://www.geracilawfirm.com/lender-lounge-podcast
Subscribe to the Geraci Law Firm newsletter at https://www.geracilawfirm.com/sign-up
Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube