• Commercial notes: Short-term business loans and real estate investor loans, including construction, fix- and-flip, bridge loans, and hard money loans. • Commercial real estate: PPR has begun investing in multifamily properties within the past year and now works with about nine operators in markets nationwide. • Affordable housing: For this new aspect of the busi- ness, PPR works with a woman-owned nonprofit, providing capital to acquire assets and build new, affordable housing. As it has grown, Van Horn said PPR has evolved from an asset manager to become primarily a “capital allocator.” It makes sense to work with joint venture partners who are experts in their niche and who have access to a prod- uct or better execution, he said. That allows PPR to focus on its strength, which is raising capital. Through its ventures, Van Horn said PPR helps inves - tors build wealth and passive income while providing an avenue for community stabilization. His wealth manage - ment motto is “share, build, preserve.” “We’re giving investors access to an asset class they wouldn’t usually have access to,” he said. “The result is financial freedom for them through passive income.” At the same time, PPR’s expertise allows its partners to grow. “We help our JV partners in what they find difficult, which is finding private equity quickly,” he said. Through its note collections business, Van Horn said the goal has always been to help the individuals as well as the community. He considers it socially conscious investing. “Collections is never a popular thing, but we can still do good work. You have to be empathetic and understanding. We can usually help people in those situations [of having a nonperforming loan],” he said. “We have more flexibility than banks because we bought the loan at a discount, and we can sometimes share that discount with the borrower or help them in moving on.” “Our main goal is to keep people in their homes, or if it’s vacant, we look at ways to get it back into the commu- nity and get it back on the tax rolls,” Van Horn said. Van Horn can call on many examples of people his company has been able to help. One borrower hadn’t been paying on his second mortgage. As it turned out, he had been injured on the job and had fallen behind on bills. He had returned to work but needed to keep his payments closer to $500 than the nearly $700 his current terms required. PPR was able to modify the loan terms, allowing the borrower to get back on track and stay in his
People have faith in us becausewe treat their money like it’s our own money.”
DAVEVANHORN
to the idea of using credit cards to finance his purchas - es and renovations. At the time, there weren’t prohibitive cash advance fees, so he would write himself a check from one credit card, deposit it, and buy a house in cash. Using another credit card, he’d fix up the house. Once he found a tenant, he could refinance to pay off the credit card debt. The tenant would pay back the refinance loan, and Van Horn often had money left over to continue the process. Through a local networking group, Van Horn learned about private money lending and was introduced to a hard money lender. As the credit card fees increased and banks turned him down for holding too many mortgages, private money lending allowed him to continue to grow his investments. However, as he racked up rentals, Van Horn realized how busy he had become with tedious tasks, like inspec- tions and eviction court appearances. Once again, his real estate investor networking group introduced him to a new concept: private notes. BECOMINGACAPITALALLOCATOR When PPR got started, it was just Van Horn, Paulus and Sweeney. Sweeney had experience as an investor-friend- ly lender, and Van Horn and Paulus were skilled at raising capital. Dealing in note funds, they were able to achieve cashflow without the hassle of directly dealing with tenants. Over time, the operation grew. Today, PPR has four streams of business that make up its funds: • Nonperforming notes: PPR’s original focus, which remains the majority of their business, is dealing in residential loans that have gone delinquent.
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