Joe and Shawn King, the Revival Brothers, use real estate as a helping hand.
What do you get when two brothers, one with a background in architecture and another in finance, join forces? A successful real estate investing company, that’s what. And it just so happens, that for the King brothers, helping others along the way has made their road to success that much brighter. Through their company Revival Brothers, Joe and Shawn King’s mission is to rebuild and revitalize blighted neighborhoods, helping families throughout the United States.
Shawn King earned a finance degree and started his real estate investment journey in commercial real estate and mobile home parks before segueing to the mortgage industry. With a degree in architecture, Joe King’s experience includes design communication for some of the largest companies around, design/build with teams constructing energy-efficient homes, and volunteer efforts with Habitat for Humanity.
With extensive fix-and-flip projects and single-family rentals under their belt, the Kings started learning about their next niche in REI — notes. Their efforts include helping troubled borrowers stay in their homes through loan modification settlements and providing seller financing solutions to new home buyers who have problems financing through traditional banks. It was their research into the notes business that led them down some confusing paths.
“After more than six months researching, I still struggled to find reliable information,” Shawn said. “This created a passion to educate and raise awareness. People don’t know what they don’t know.”
This learning curve also led to an evolution in their business. Their fix and flip rehab business turned into a real estate investment company that has the necessary infrastructure to quickly identify, acquire, and manage distressed residential assets.
“Eventually, we decided to dive deeper into analytics and exit strategies,” Joe said. “I wanted to develop a tool to analyze company assets. Our investment strategy involves extensive analytics and our process produces multiple potential exit strategies for every investment, which is an essential element in reducing risk and increasing profit margins,” Joe said.
The tool that the Revival Brothers created is called IPA (Ideal Project Analyzer). And because neither brother was interested in adding software developer to their resumés, they offered it to the industry to help others mitigate risk.
“The goal is to provide an avenue to analyze assets in notes and off market REO,” Joe said. “Revival Brothers was set up to buy, sell, manage assets, and make money, but our purpose has evolved to so much more. The market is flooded with new investors taught by some gurus with unethical methods. A good portion of these students are taught to make offers based on percentages of UPB rather than yields and returns; as a result, the pricing and risk of these investments skyrocket. They are also taught that if there is equity in the asset, there is more value to the note. The problem is, you are not buying real estate, you are buying paper (a note) and with this line of thinking and pricing offers, investors are quick to foreclose rather than figure out a win-win solution to keep a family in their home, not to mention the fact that many things can happen to your investment when approaching foreclosure. We want to create a win-win for all.”
Leaders of Integrity
One reason Joe and Shawn feel so strongly about their methods of doing business is because they have been burned in the past. From unethical underwriting to an inexperienced developer promising what he couldn’t deliver, the Kings have struggled with whom to trust.
“We have seen shady deals and bad actors in the industry, on both sides. When we began to understand how the industry was changing — how a lack of transparency related to business — and how mis-teachings are setting investors up for failure, we felt a desire to bring awareness to what is going on in the industry, both good and bad. People are hungry for trustworthy information. We wanted to build a transparent company with solid communication. This led to making our IPA property analyzer available to the public with the notion that folks would get a true understanding of the potential performance of their investment. I’ve always said, ‘numbers don’t lie, people do.’ There is no better way to build trusted relationships in my opinion,” Joe said.
Joe and Shawn have partnered with some of the most reputable people in the industry to form LOI (Leaders of Integrity) events where they offer free webinars and cost-effective workshops. Their LOI channel is their way of addressing unethical dealings in the industry and providing a trusted resource. Shawn said they are flooded with questions from people needing help in bad deals.
“Putting people first and putting aside greed develops a community of trust and awareness instead of counting every penny that comes through the door,” Shawn said.
But they wish they could do more.
“If I had unlimited funds, I’d help low-income families gain ownership in low-income communities. Opportunity Zones open doors for investors, but they are gentrifying areas. It might seem like it’s creating opportunities, but it’s actually putting a Band-Aid on the underlying issue, which is how to keep families in homes and give them ownership,” Joe said.
Leaders of Integrity was established to bring awareness to the real estate investment industry, to quiet the noise, and to be a voice of trust.
“Our philosophy is that the borrower comes first. If there is no solution, at least we have tried our best,” Shawn said.