Blue Collar Yields

Understanding the legal aspects of investment opportunities is serious business from the investor’s perspective as well as for the sponsor of an investment. As chair of Parker McCay’s corporate department, Mariel Giletto is well-positioned to walk us through some of the steps individual investors should take when screening private placement investment opportunities and also discusses the legal aspects of capital raising. Mariel stresses the value an attorney can bring in helping the investor or sponsor get what they want out of the investment transaction without taking on avoidable liabilities. Shrewd investing and capital raising starts with understanding key concepts such as: seeking help in deciphering contract legalese and getting attorney feedback before signing documents, red flags in screening investment opportunities, partnering with a CPA to understand tax consequences, clarity in the waterfall provisions of a deal, preferred returns, subscription agreements, private placement memorandums, investor accreditation, alternative investments, the role of the deal sponsor, SEC requirements and much more!

Zach Dovner works as Corporate Counsel, and Deal Analyst on the acquisitions team at Eastham Capital, a private equity real estate investment business focused on buying, improving, stabilizing, and selling distressed multifamily real estate.  In this role, Zack is well-positioned to help us understand the basic structure of private equity funds and the ‘who’ does ‘what’ with regard to limited partners and sponsors in joint real estate acquisition ventures.  He offers his perspective on: screening potential sponsors, Eastham’s requirement of sponsor co-investment and ways to incentivize the sponsor in executing the business plan, value-add strategies, underwriting every new deal to stress-test assumptions, the challenges of the fundraising side of the business and the ‘keep smiling while you’re dialing’ mindset.  By far, the hardest part of the job for Zach is saying no to a potential investor whom you like and respect when the deal does not meet company requirements.

For everything you’ve always wanted to know about Opportunity Zones, Brad Molotsky’s your guy! Brad currently practices with Duane Morris LLP in the area of real estate law, and he serves as co-head of the firm's Opportunity Zones practice. Brad chronicles how this federally-established program became a reality, as the brainchild of billionaire ex-Facebook president Sean Parker along with bipartisan efforts of Senators Tim Scott and Cory Booker. Brad also compares his perspectives as an attorney in a big law firm with his experience as Executive VP and General Counsel for a large development company. 1721 is a project near and dear to his heart, a novel combination community for seniors and developmentally disabled adults in Cherry Hill, NJ. Brad notes that while there is a general affordable housing shortage nation-wide, the issue is at a crisis level with little to no availability for special-needs adults.

Construction is in Jordan Traenkner’s blood, growing up with his Dad, who has been a custom homebuilder for 40 years.  Traenkner Building Services evolved into a family business by blending their shared construction background with his brother’s roofing company and his own specialty of cleaning and gutter services.   Through their combined talents, they now have the experience and knowledge to take on just about any project and handle the work from the ground up. Jordan offers his perspectives on Instagram and Facebook as marketing assets, the importance of preventative maintenance to avoid costly repairs, and maintaining high standards in craftsmanship and customer commitment.   He shares his pride in the good name his family company has built over the years, and their focus on continuing and growing the legacy to include his nieces, nephews, and future generations.  Jordan looks forward to passing on the family values and embracing innovations along the way as the magic formula for long-term success.

“One of the most fun jobs you could ever have” is the way Dan Rhoton describes his role as Executive Director of Hopeworks 'N Camden where he works with youth who have survived, with their spirit and determination intact, incredibly difficult circumstances.  Hopeworks provides guidance to get them over the hurdles that could otherwise derail their futures.   Dan relates the mission of Hopeworks where trainees can learn technology skills, gain on-the-job work experience with local businesses, reside in their residential community called The Crib when needed, strengthen academic competency, and receive coaching in life readiness skills.  Dan candidly admits that he has no lofty motivations for working with the youth of Hopeworks.  Simply put, his reason is “It is so much fun!  Most folks go to the theatre to watch an inspirational movie with some life-changing event.  In this job, I get to be an extra in one of the best movies every day.”

Rachael Wonderlin has always loved older adults, and working with the aged is her calling.  She has a master’s degree in Gerontology and discusses turning her life’s passion into a successful dementia care consulting company called Dementia By Day.  Rachael’s company started as a blog, where she shared the stories that grew from her experiences working in dementia care facilities.  The blog garnered quite a following and became a book, “When Someone You Know is Living in a Dementia Care Community,” published by Johns Hopkins.  Rachael is definitely firing on all cylinders as an entrepreneur, with website offerings for customized consultant services for dementia care programs, staff training videos, a poster called “If I Get Dementia,” webinars, Care Partner Club calls, and a second book called “Creative Engagement.”  Rachael has even managed to work improv comedy into her repertoire with a workshop called “Agreeing to Remember.”

In some ways, Professor Victor Hackett likens the Opportunity Zones program to the “Wild West” for those who are not trained in seeking these investments, with the possible dangers of blind funds with no specific assets, large associated fees and a lack of expertise in fund and financial management.  Professor Hackett helps to tame the OZ “Wild West,” providing his insights on the program and sharing the valuable resource of OpZoneNation.  Victor is a Co-Founder of OpZoneNation,  a consultant advisory and educational services provider focused on the  Opportunity Zone Program.    Victor offers his differing perspective on the criticisms leveled at the Opportunity Zones around the ‘rich gets richer’ theme.  And for those who live in the OZ tracts, Victor recommends having a voice on local zoning and approval boards.  You have more power than you think if you choose to use it!

Professor Victor Hackett shares his expertise on the Opportunity Zone Program, established by the U.S. Congress in December 2017 through the Tax Cuts and Jobs Act. Victor teaches Real Estate Studies at Drexel University’s Lebow College of Business, with a professional background that includes fund level management, fund financial modeling, as well as real estate acquisitions, dispositions and project management.   In Part 1 the development of the OZ program is chronicled, originating as the child of a think tank in Washington DC, supported by Sean Parker of Napster and Facebook fame.  Victor presents some of the real life possibilities and examples of people from different walks of life who are creatively adapting their businesses to opportunity zone funds.   Professor Hackett also discusses the historical relationship between a significant market drop, yield curve inversions and probability of a recession.

Jim Catrambone, the Executive Director of The Joseph Fund, credits Monsignor Robert McDermott with instilling the spirit that has made LUCY Outreach an awe-inspiring success.  The key differentiator is opening a child’s mind to a belief in limitless possibilities, with effort and a will to succeed.  The Romero Center Ministries is an urban retreat drawing students from all over the US to gain an understanding of serving people in need and a commitment to societal transformation.  St. Joseph Pro-Cathedral School is a private K-8 elementary school that subsidizes 85% of student tuition. (Funding opportunities for the Joseph Fund missions can be found on www.josephfundcamden.org.) Jim points out that non-profits and small business entrepreneurs share similar operating principles such as a focus on fiduciary responsibility, quantitative measurements of success and the spirit and gusto they bring to the work they do.

The Joseph Fund of Camden originated through the vision of Monsignor Robert McDermott, serving as a new Pastor in the City of Camden NJ at a time of decline, with many residents firmly locked in the cycle of poverty and homelessness.  Early efforts in hospitality and respite for the homeless were effective and well-intentioned, but clearly not enough.  A hand-up through education and support to take the necessary steps to empowerment and self-sufficiency was the answer, not the temporary balm of a hand-out.  Jim Catrambone, the Executive Director of the Joseph Fund chronicles the mission and evolution of the fund, as well as the stewardship of the resources that are designed to ensure sustainability.  There are six ministeries that continue to transform lives and the City of Camden.  In Part 1 of the interview, Jim discusses Saint Joseph’s Carpenter Society, Child Development Center, and Joseph’s House of Camden.