REI INK

Company Spotlight

A Niche Opportunity for Real Estate Investors

Transforming Travel, One Guestroom at a Time REI INK had the pleasure of meeting and talking with Kevin Bidner, President & CEO of the Hotel Communication Network at the National Private Lenders Association Conference in Austin, TX. Below is an excerpt from the company’s Executive Summary which outlines the concept, strategy, and business plan of the company. It was only natural to include this in our January 2025 “Niche Markets” issue as it represents a unique investment opportunity that real estate investors may be interested in exploring. Travel is one of the world’s largest industries, comprising 10% of the global GDP. The Hotel Communication Network’s (HCN) founders identified the travel industry as an opportunity for a digital platform that had not yet been established and set about applying their considerable experience in this sector to the evolution of a strategy to establish a digital platform by penetrating the heart of everyone’s travel experience, the guestroom. This launch strategy is the installation of tablet computers into guestrooms creating a billboard with ‘push’ messaging, as well as a fully interactive portal, aggregating hotel, city, and meeting/convention content as well as transactional opportunities. The tablet also enables communication through the guest’s own mobile device, based on a system of scannable QR codes delivered to the screen. There is an obvious industry-wide ‘technology vacuum’ in today’s guestroom. With 85 million millennials now outspending all other demographics in the travel industry, Hoteliers, traditionally late adopters of technology, are overdue for a communication upgrade. It is quite clear: having a book and a land-line phone in the guestroom simply won’t do for the millennial generation. The upgrade of communication technology has been tried on the television (failed), and on guest’s own devices with mobile apps, also with similarly disappointing adoption results (JD Power reported under 10% adoption in 2019). In contrast, a guestroom tablet reaches every guest on property with proactive in-room ‘Billboard’ type communication, which is un-missable. Even more convincing, 85%+ of guests pick up the tablets on every day of their stay, entirely solving the hotel’s communication problems, updating the communication technology in the guestroom to conform with the demands of today’s generation of travelers, and making the guestroom tablet the natural next major rollout in the hotel industry. A guestroom tablet replaces all the old ‘junk’ littering up the guest experience, replacing the paper hotel directory and city magazines, the land-line phone, clock radio, TV remote and even the thermostat, with a single device that becomes the room controller, while at the same time creating a cutting-edge communication and transactional capability in the guestroom. The winner of the guestroom technology platform becomes far more than just the ‘guestroom tech company.’ As the installation grows to critical mass in the industry, this guest-facing, connected network becomes a ‘digital marketplace’ and eventually a travel industry marketplace. To that end, HCN’s founders, with two globally successful digital platform plays in their resume, created a strategy to win the industry from the top down by investing their time and technology to become the company that would one day win the multi-million room major accounts, starting with Hilton, then Marriott and IHG (Holiday Inn, etc.) With that leadership, the rest of the industry will follow, triggering a multi-million room rollout to the 3, 4 and 5-star category hotel tiers worldwide. “Win the Guestroom, Win the Guest” There are over 17 million guestrooms in 187,000 hotels worldwide. Of those, 16.9 million of them are devoid of smart room technology and HCN has created a smart room platform that can be deployed on a global scale. It is cloud based, multi-lingual and built on the latest technology stack that can adapt to any hospitality segment in the marketplace. Global hotel revenue hit $198.6 billion in 2020. In addition, the hotel room is the nexus of the tourism industry, the convention industry, and the hotel related food service industry in every downtown core. Placing a proactively broadcasting tablet right at the point of purchase (75% of all travel spending decisions are made in the guestroom), gives these stakeholders direct access to this incredibly valuable customer set. HCN’s mission is the establishment of a critical mass of tablets in every major city, creating a global ‘digital marketplace’ in the travel sector. Important to note, the tablets are only the starting point, by getting millions of guests per day using the marketplace, this launches the “HCN Passport” mobile platform, that the guest can take with them all through their stay, with an AI concierge to accompany them and assist them with their every need. The Global Launch Begins Now HCN is well on the way to launching its global rollout along two strategic pathways to achieve rapid expansion and reach throughout the hospitality industry. Plan A targets the installation of 100,000 tablets in Hilton Hotels worldwide within the next 12 months. With a global Master Service Agreement secured with Hilton, this planned rollout is more than achievable. The zero-cost installation model for hotels, paired with a revenue-sharing arrangement, offers strong incentives for adoption and accelerates scalability. The second pathway focuses on high-density installations in major metropolitan areas to further accelerate market penetration. This approach includes collaboration with city visitor bureaus to place HCN tablets in guest rooms as dedicated “Visitor Guides.” Starting with 30,000 units in Chicago, this model will expand rapidly in cities like New York City, Las Vegas, and Orlando, where installations could reach 100,000 units per city. Globally, this model has the potential to reach millions of rooms, tapping into the 17 million rooms worldwide within the hospitality industry. Either of these — Hilton’s adoption, or penetration into city markets, paves a clear path for HCN to enter IPO territory. With no competitors able to match their pace, they have a solid path to success ahead. In the chart below is a breakdown of their projections, per revenue unit, per room, per month in the various revenue categories. Note the tablet cost is $145 each. Synergistic rollout to the

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From Flippers to Leaders

How BRK CTY Became the Nation’s Premier DSCR Lender by Eric Panecki When the co-founders started BRK CTY, we did not intend to become the leading DSCR (Debt Service Coverage Ratio) lender in the country. Our roots were humble, born from our experience as New Jersey real estate investors flipping properties. This hands-on knowledge gave us a deep understanding of the challenges investors face, from navigating financing options to closing deals quickly. We saw the inefficiencies and pain points firsthand — and we knew we could do better. Our journey from investors to DSCR specialists was not without its challenges, but it is a story of resilience, focus, and innovation. Today, we are proud to say we help brokers and their clients achieve their real estate goals, offering a tailored, expert-driven approach to lending. Here is how we got here, the products we offer, and some best practices for brokers looking to thrive in this competitive space. A Strong Foundation in Real Estate BRK CTY’s story began like many others in real estate: with a few properties, a vision, and a lot of hard work. We built our expertise buying/holding/flipping houses, learning what it takes to maximize returns and overcome the unexpected challenges that every investor faces. At first, our lending business was broad. We offered bridge loans, ground-up construction financing, and DSCR loans to meet the diverse needs of our clients. While this approach allowed us to serve a wide range of borrowers, we soon realized it came at a cost. We were not able to focus on doing one thing exceptionally well. That is when we made the bold decision to pivot. We dropped bridge and construction loans to focus exclusively on DSCR loans. It was a tough pill to swallow for our sales team, who initially lost 75-80% of their business. But we believed that by concentrating on one product, we could not only survive but thrive. Why DSCR Loans? DSCR loans are the backbone of real estate investing, especially for those looking to build rental portfolios. Unlike traditional loans that rely heavily on personal income and credit scores, DSCR loans evaluate a property’s cash flow in order to set the basis of the loan value. This makes them ideal for investors who prioritize passive income and scalability. By focusing solely on DSCR loans, we have been able to fine-tune our process, develop expertise, and create a product that truly meets the needs of investors. Our loans offer competitive rates and terms, including 30-year fixed and adjustable options, high LTV ratios for maximum leverage, and simplified underwriting processes for faster closings. Our decision to specialize was transformative. We had a goal of having the widest box available for our underwriting process in order to meet our brokers’ needs. We partnered with multiple capital providers to make that happen. We have grown into a trusted partner for brokers and their clients, offering unmatched speed, transparency, and support. From Being White-Labeled to Building Our Own Infrastructure In our early days, we operated behind the scenes, white-labeling our lending services for larger firms. While this gave us valuable exposure and volume, it also came with limitations. We didn’t have control over the borrower experience or the ability to innovate on our terms. We were doing five loans a month… The turning point came when we saw the inefficiencies with this model. The lack of flexibility and the disconnect between our services and the end customer’s needs were holding us back. We realized that to grow, we needed to build our own infrastructure.  We were doing 10 loans a month… This was no small feat. Developing the systems, teams, and processes to handle everything in-house was a significant investment. But it paid off. Today, we manage everything in-house from underwriting to servicing, ensuring a seamless experience for brokers and borrowers alike. We were doing 20 loans a month… Ironically, some of the same firms that used to white-label us now rely on our infrastructure to power their operations. It is a testament to the strength of what we have built. We are now doing 100 loans a month, $50M in transactions, and are still growing. Partnering with Brokers for Mutual Success Brokers are at the heart of what we do. We view them not just as intermediaries but as true partners in delivering value to investors. Here is how we support brokers to ensure their success: Transparent Compensation // Brokers can earn up to 5% points and yield spread on deals. We pride ourselves on having no hidden fees. Our structure ensures that brokers are fairly compensated while maintaining competitive terms for borrowers. Dedicated Support // Each broker is assigned a dedicated account manager, providing a consistent point of contact to navigate deals efficiently. From initial inquiries to closing, our team is here to support every step. Technology-Driven Solutions // We have invested in tools and platforms to make the lending process as seamless as possible. Our pricing engine, application portals, and tracking systems provide brokers with real-time updates and transparency. Education and Resources // We regularly host webinars, provide co-branded marketing materials, and share best practices to help brokers stay ahead of industry trends. Expanded Buy Box // We sell to a broad network of loan buyers, allowing us flexibility that can be an advantage to our customers. We’re able to offer low seasoning periods, low credit score, Sub-1.0 LTV loan amount, etc. Our goal is to be the one stop shop for all DSCR products. Best Practices for Brokers In our experience working with brokers nationwide, we have identified a few key practices that separate top performers from the rest of the herd: Know Your Products // Understanding the nuances of DSCR loans is crucial. This includes knowing what makes a deal work, the target borrower profile, and how to position the product to maximize value. Focus on Thorough Submissions // The more information provided upfront, the faster and smoother the underwriting process. This minimizes back-and-forth and ensures

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Brandywine Cares: A New Future for Renters in Atlanta

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Investing in People — Investing in Communities Brandywine Cares, a nonprofit organization, is on a mission to transform the future for renters in Atlanta. Through initiatives in career coaching, financial education, and the power of planning, the organization strives to ensure that individuals not only establish and meet their career goals but thrive as a result of being stronger and more resilient financially. In 2024 alone, 166 participants have received coaching, with 48 people gaining employment, leading to an average salary increase of $22,000. These efforts have resulted in a total community impact of $1.1 million this year, with 280 total participants across all programs. Lafayette RE: Building the Foundation for Brandywine Cares The foundation of Brandywine Cares was laid with the support of Lafayette RE, a private equity firm managing over $1 billion in assets and 5,000 homes across the Southeast part of the United States. Recognizing the challenges renters face, Lafayette RE, led by CEO Thibault Adrien, made an investment beyond property management. “Everything started from the realization that our responsibility to communities goes beyond managing assets — we needed to create opportunities for people to understand and reach their potential,” says Thibault. With this vision, Lafayette funded Brandywine Cares’ first year, focusing primarily on career coaching as a means to address the gaps in opportunity and financial stability that have long persisted in underserved neighborhoods, affecting housing and food security, among other things. A Vision for Lasting Change The mission of Brandywine Cares is driven by Heidi Coppola, the organization’s President. With extensive experience in nonprofit leadership, Heidi is passionate about addressing the systemic barriers that prevent many Atlanta residents from finding well-paying, sustainable employment and opportunities for personal, career, and financial growth. Her dedication has been instrumental in bridging the income and opportunity gaps in underrepresented communities. For Heidi, Brandywine Cares is a vehicle to create a lasting impact on individuals’ lives and the communities in which we all live and work. “Our goal is to create pathways to stability and opportunity, so people aren’t just surviving—they’re thriving,” says Heidi. Under her guidance, Brandywine Cares has launched initiatives that provide practical skills, career coaching, and financial literacy tools. These efforts are not just about temporary relief; they are about planning and executing on the plan, laying the groundwork for long-term success and prosperity. Empowering Communities, One Story at a Time One of the many lives touched by Brandywine Cares is Keianne Hardy, who was passionate about transitioning from a career in the education field to technology. Through Brandywine Cares, Keianne received one-on-one coaching and a revamped résumé that helped her shift into a higher-paying role in the education sector, giving her room to explore additional credentials and the transition to the technology sector. She joined CareerProsper, Brandywine Cares’ six-week program designed for those transitioning into new fields, and then secured a job with a technology company, also being accepted into a technology training program through a Brandywine Cares partner. Today, Keianne has not only increased her salary but has fulfilled her dream of transitioning into a new field that offers her opportunities for personal, professional, and financial growth. As part of its comprehensive programming, Brandywine Cares offers small business bootcamps. Aleisha Kelly, a graduate from the Spring bootcamp, credits this program with helping her find the self-confidence to tell her story in an entrepreneurship elevator pitch competition, where she took first prize with a substantial cash award, reinforcing her belief in setting and achieving high goals for herself. A Ground-Level Commitment to Change While Heidi’s strategic vision shapes Brandywine Cares’ direction, Brandywine Cares’ participants benefit from the very high-quality work of its Director of Workforce Development, Tamara Allen, who leads career coaching and program development. Additional support comes from individuals like Jackie Lee, CEO of Brandywine Homes. Jackie joined the Fundraising Committee to help organize the nonprofit’s upcoming event, leveraging her deep connections in Atlanta to bring together sponsors and donors. As someone who sees firsthand the challenges renters face, Jackie is passionate about making a difference. Her efforts reflect her belief that the real estate industry has a role to play in creating a more equitable community. “Every day, I see families working hard to make ends meet yet struggling to keep up with rent and rising costs. We have to use our resources to give them a fair shot at stability and opportunity,” says Jackie. “This is a subject that matters deeply to me because I believe in the potential of our residents and the communities we serve.” For Jackie, this work is not about her vision — it is about lending her support to the cause during her free time, ensuring that Brandywine Cares achieves the impact of which it is capable. Bridging the Gap in Atlanta’s Real Estate Market Brandywine Cares’ work is particularly significant in Atlanta, where rental and home purchase prices and limited affordable housing have created hurdles for many families. As the city grows, so does the divide between those who can afford the cost of living and those left struggling to keep up. Heidi and the Brandywine Cares team understand that these challenges require more than just providing housing; they require creating opportunities for financial independence and growth. Their programs are designed to equip participants with the skills and knowledge needed to find careers, not just jobs, advance in their careers, manage their finances, and continue on the path to prosperity. This holistic approach ensures that more Atlanta families can afford safe, quality housing without being displaced from their neighborhoods. Looking Ahead: A Call to Action The upcoming fundraiser on November 21st at the Trolley Barn in Inman Park, Atlanta, marks a pivotal moment for Brandywine Cares. This event will bring together industry leaders, community advocates, and supporters united by a vision of a more inclusive future. The funds raised will enable the nonprofit to expand its programs, reach more individuals like Keianne and Aleisha, and continue creating opportunities for those who need them most. The event

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Creating a Best-in-Class Experience

Building a New Wholesale Broker Paradigm by Ezra Dweck and David Jacob IceCap Group is one of the largest private money lenders in the country providing business purpose loans for both short-term bridge and long-term fixed rate rental loans for 1-4 family, 5+ multifamily, and mixed-use real estate properties. IceCap Group is institutionally managed and backed by a family office with a 30+ year history of successfully investing in real estate. In March of 2023, IceCap Group launched the BluFin Group as its new wholesale origination channel to extend its capital resources to a nationwide broker network. In tandem with the BluFin Group, a streamlined, tech forward, and client-service-focused platform was developed to support this network of brokers by offering alternative debt origination and funding solutions through unapparelled expertise. The firm immediately began expanding wholesale lending operations and closed its first wholesale division loan on June 2, 2023. IceCap Group had developed a burgeoning broker business prior to the launch of BluFin, but after seeing the competition in the marketplace, they realized that there were inefficiencies that needed to be addressed. To cure this void, they went out and sought additional talent by identifying the right team in Thomas DeMartin, Dalton Harben, and Chad Saunders. With a long pedigree in the wholesale market and closing thousands of successful broker transactions prior to joining IceCap, they knew firsthand what was absent in the processes of other lenders. The new partnership was a seminal moment for Ice Cap arising from a vision of excellence born out of opportunity realized from vast combined industry experience. The firm is presently constructing a best-in-class, one-stop lending solution for investor financing by breaking down barriers and offering solutions to various challenges plaguing this industry and markets. This solution includes enhancing the broker and consequently, borrower experience, by providing full transparency, self-service technology, and common-sense underwriting guidance. Credit and underwriting departments often achieve a bad reputation and are viewed as a necessary evil by those in production; however, BluFin has flipped the script by combining the forces of production and credit to achieve a common goal: a clear path to closing. It is not just all about closing, though. How a broker and lender partnership arrive at closing is often neglected by industry competition, leading to nail biters, head scratchers and often times painful experiences. BluFin’s approach is to fill the gaps and refine the process. The firm focuses on the total experience by offering a streamlined and problem-solving approach to achieve a closing and impart a legacy experience that maintains broker retention well above the industry norm. A Unique Capital Base and Experienced Team While many competitors and brokers might say BluFin and all of its capabilities sound great, they might also feel they have heard this similar type of message from other lenders in the private lending space. Despite IceCap’s firm belief that it has created a new lending paradigm for the broker community which should be experienced by all brokers and borrowers, the firm also believes it offers the industry a unique capital base which enables BluFin and IceCap to be more than just a “sell everything” conduit. Aside from access to the traditional bridge and term note buyers, the firm offers a sophisticated departure from the norm in managing three different internal debt funds in addition to an insurance fund and extensive access to the securitized markets. By lending the firm’s own capital, IceCap can focus on both “conduit” type originations and discretionary deals that offer attractive risk-adjusted returns for the firm’s dedicated funds. This includes multifamily and mixed-use bridge loans, ground-up loans and five-year term loans, allowing the firm to serve a diverse range of client needs. The coupling of prudent lending standards and innovative technology ensures that the firm can remain agile and focused, while providing brokers with consistent and reliable lending solutions. The past four-plus years since COVID have been anything but stable and smooth sailing in the real estate lending space especially as interest rates and cap rates moved appreciably higher. The industry has seen many lenders disappear, capital standards tightening and now the GSEs are cracking down on bad actors, especially in the title industry. While all of the above has been occurring, IceCap continued to lend and has expanded its capital base without suffering any real credit stress on its discretionary or sold loan originations. The firm abstained from overly aggressive lending practices which had unintended consequences across the competitive landscape. Much of this success is grounded on a strong leadership team with real estate equity and lending backgrounds combing decades of Wall Street experience with entrepreneurial hustle. Empowering Brokers for Success BluFin’s mission is to expand on IceCap’s explosive growth in this space by leveraging the capital base developed by a trail blazing team of experienced finance executives. This is accomplished by extending Ice’s diverse suite of flexible funding solutions to a network of brokers that were ripe for something more refined and empowering for their client base. A critical component to this is market-based pricing through its wide array of counterparties, including alternative asset managers, private equity firms, and insurance companies keeping them nimble and consistently ahead of price moves. IceCap is not beholden to any one capital source which many other lending outfits are subject to as consolidation has increased in the private lending space. IceCap counterparties provide a clear vision of the overall market which is then extended to its clients daily using a self-service full-process platform. The firm offers no origination fee loans and provides raw par pricing with the ability to earn yield spread premium or buy down interest rates. Fees are vastly different across the competitive landscape and often overlooked by lending partners. BluFin observed various areas to reduce fees across product lines without sacrificing service and capabilities. It has lowered underwriting fees, cut the junk, and allowed brokers to earn more while saving their client’s money which is a crucial component to winning more business in the investor

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Cornerstone Building Brands

Bringing Relentless Customer Focus to Investors Everywhere By Carole VanSickle Ellis When Cornerstone Building Brands director of retail sales Jorge Castro talks to a potential or current client about their door-and-window needs for a project, he tends to ask a lot of questions. However, they are not always the questions his customers expect from their suppliers. That is the key, Castro says, to Cornerstone’s history of satisfied, repeat clients. “The thing I always ask first is, ‘What drives you?’” Castro said. “That helps me really understand the need they have for the project. It is far more effective than just telling someone about every single product right off the bat. I want to know the biggest things they want to do and why they are investing in the property so we can give them the best products that will fit that need.” As the largest manufacturer of exterior building products in North America, Cornerstone can usually offer an array of products that fit the bill. Mike Castillo, Cornerstone’s national account manager on the company’s Retail Pro business, explained. “Our company offers consumers big things because our brand and portfolio extend across the country. Whether you are in Florida or Washington, we can help you.” Castillo, a former marine who has been with the company more than eight years, noted that one his team’s top priorities is making sure customers have all the information they need and the support Cornerstone can offer in order to make sure they choose the right product for an asset. “We view every relationship with a client not just as a point of sale but as a partnership,” Castro said. “If there are issues, then we get someone dedicated to going to a job site with the customer to figure it out. There have even been times we rebuilt windows and delivered them next-day because when it comes to that partnership, we will do what is necessary to help our customers get the job done.” Diagnosing Problems, Asking Questions & Implementing Solutions Sometimes, helping get the job done involves identifying places where the customer is missing vital information. For example, Castro noted many new Cornerstone clients struggle with understanding how to make sure they are meeting all code requirements when they install windows and doors. For many investors, in particular, who may own assets in multiple markets across the country and deal with myriad variations on common code requirements, the line between energy efficiency (often oversimplified to simply mean any product meeting federal ENERGY STAR certifications) and local code regulations becomes blurred. Then, Castro said, an owner can end up with a building that does not meet code requirements even if it has environmentally supportive windows, doors, and other appliances. “We have to know the requirements everywhere, whether you are in the Pacific Northwest, Florida, Texas, or California. Building codes are standards to which a builder must build the property, and those vary from place to place, whereas ENERGY STAR goes by region, and there are only four regions,” Castro explained. “However, a lot of property owners end up going by ENERGY STAR because they think that will take their building to code, which can end up being a very costly mistake. They are not the same thing. You have to go with the code first.” Castro recalled an experience with one customer who had not replaced windows in a multifamily building before. Some of the units had burned in a fire, so a large number of windows and doors needed to be completely replaced and dramatically updated. “They were kind of at a loss because it was their first time; the building had been built in the 70s so it was not an easy swap, and they were not sure exactly what they needed to do,” Castro said. Ultimately, the customer and Cornerstone worked together to entirely outfit one unit with the new windows Castro recommended so they could see how they worked out, and this helped them understand the process and tackle the larger project with confidence. “They were calling us and sending pictures, and then we would get them products. We ended up delivering more than 1,500 windows.” Castro said. “That was 10 years ago, and they are still working with us because they left that project feeling confident and satisfied. I feel so comfortable knowing that is the kind of company I work for: where we are encouraged to treat our customers that way.” “The number one thing our teams do is know the vital details: what kind of latches you need on a window, how to factor in what types of things are close to the project that might affect the product you choose, and the best way to get those things delivered the best way possible,” Castillo chimed in. “We make sure we have those answers up front so transactions are smooth and clients get the right products.” A Focus on the Community: Helping Families Come Home for Good Sometimes, getting the right products to the right places involves more than just helping out clients with projects. Cornerstone also dedicates large volumes of resources to helping families struggling to find stable housing secure a safe place to land — permanently. Cornerstone Building Brands “Home for Good Project” partners with Habitat for Humanity and the LadyAID Fund of the Community Foundation of Middle Tennessee to help build affordable housing for families in need. Cornerstone donates products, facilitates house builds, and works with Grammy-winning trio Lady A (founders of LadyAID) to “use music to strengthen and inspire our communities,” according to the project website. So far, the Home for Good Project has:  »         Participated in building or remodeling more than 720 homes  »         Impacted 135 communities via these projects  »         Donated $3.4 million in products and resources These projects have helped families that were living in unstable housing situations or facing homelessness access a “forever place they can always come back to.” For example, Kentucky resident Sallie and her son, Casey,

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Creating Opportunities

Mino Lending Solutions Prioritizes What Investors Need Most By Carole VanSickle Ellis When you think of private lending, the word “scrappy” is not usually the first word that comes to mind. However, when you think of Mino Lending Solutions, the Detroit-based, full-service, nationwide mortgage originator specializing in financing for real estate investors and actively engaged in making loans that other lenders simply cannot tackle, “scrappy” seems to fit the bill. “From the beginning, we have had that scrappy, gritty, creative element ingrained in us because it is in the culture that drives us in Detroit,” said Cason Thorsby, co-founder and CEO of Mino Lending Solutions. Although the company is based in Detroit, it operates nationally and makes not only the lower-dollar loans that investors are desperately seeking in that market but also higher-end loans on what Thorsby calls “million-plus fix-and-flips.” “If a deal makes sense, we love it and we are going to do it, period,” Thorsby said proudly. “It sometimes might seem to real estate investors that no one wants to play in the smaller-dollar sandbox, but if that is what investors need, we are going to be there.” Thorsby and co-founders Chad Skop (COO/CFO), Grant Drzyzga, and John DeSilva started the company in response to the need for real estate investors and property managers to access equity in their current portfolios, fund new acquisitions, and grow their businesses, Thorsby explained. Drzyzga and DeSilva, who are also founders of property management software platform Revela, initiated the conversation when they noticed an ongoing flow of requests from their clients for more funding for their investments. “Our clients are smaller, non-institutional real estate investors driving positive change in local economies, and there is no market where that opportunity and the need for funding is more evident than in Detroit,” Thorsby said. “Smaller investors’ appetite for risk and willingness to take on hard work and hard projects helps stabilize neighborhoods and shore up local markets. We believe they should have access to the same type of financing as the ‘big guys.’” Providing a New Point of Access to Profitability & Cash Flow When the co-founders first broached the idea of a lending company with each other, they did so in response to a clear gap in the market when it came to serving individual investors engaged in markets like Detroit, Michigan, where Mino Lending is based. Although investors are often able to get into deals with short-term loans in markets like Detroit, of which there are many in the Midwest in particular, it can be difficult to exit that funding to create profitability and cash flow. “We have roots in Detroit, and the characteristics of this market bleed into others like Cleveland, Ohio, or St. Louis, Missouri, to name just a few,” Thorsby said. He continued, “In these types of markets, valuations and properties can vary greatly street by street and even block by block, and asset prices are still relatively inexpensive compared to the rest of the country. This means there is an opportunity for people to create portfolios here that they could not create anywhere else. We are determined to help them do that.” Thorsby recalled his early days in private lending just after leaving his food-and-beverage business to become a lender. “I had a lot of experience raising money, but I had not seen how it usually worked in the real estate space up to that point,” he said. “From the ‘outside’ looking in, it just did not make sense that someone with good credit, good experience, and good liquidity could not get financed for a deal in a place like Detroit. If there is money to be made, it can be a good loan, and we are proud of our success in lending to investors in Detroit with a 0% late payment, 0% delinquency track record. We are proud that we saw something that needed to change and we are helping change it.” The Truth About “Small” Loans “Small” real estate loans are hard to come by, and this can make investing in highly attractive deals in certain markets extremely difficult for investors who rely on loans to finance acquisitions and renovations. Historically, the investor maxim regarding borrowing was, essentially, “If you’re willing to pay the price, you can borrow on anything.” However, this has never fully applied to small property loans, typically defined as $100,000 or less. To Thorsby, that inaccessibility was a problem. “In markets like Detroit, which is our home base, you can still buy a house for $50,000 and put $30,000 into it for a cost basis of $80,000. That is huge for an investor with decent liquidity who wants to invest in the Midwest,” Thorsby said. “They can create portfolios with many cash-flowing properties despite higher interest rates, but only if someone will make the loans.” Mino Lending has prioritized these types of borrowers from the beginning. “We have roots in Detroit,” Thorsby said. “As a private money lender, we understand what makes a good deal and we believe it is important for investors to be able to do those deals when they make sense.” With the average home loan amount in the U.S. today hovering just over $400,000, most lenders, “conventional” and private, tend to avoid making loans below $100,000 because they simply are not as cost-effective as larger loans. It costs roughly the same amount to originate a loan of any size, and most lenders do not choose to specialize in these small loans since relatively few of them are originated each year. While these reasons might make good business sense for lenders, Thorsby said, the truth is that the practice of only making larger loans leaves investors active in some of the most affordable markets in the country out in the cold. For Mino Lending, which already specializes in making loans of all sizes nationwide, the correct course of action was clear. “The feather in our cap is that we are an up-and-comer willing to do financing in cities

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