What Makes IHC (Inspired Healthcare Capital) Different?

Wally Smith:
That’s what you said. How many deals have you guys done total?

Patrick Lam:
Total since inception, we’re probably at our 21st deal altogether now.

Wally Smith:
How many have gone full-cycle?

Patrick Lam:
We have two full-cycle events right during the middle of COVID. And we didn’t have to full-cycle it, but quite honestly, we full-cycled those offerings early. And we wanted to show that number one, assisted living and memory care were virtually unaffected by COVID and we had financial strength to go full-cycle during COVID for those offerings.

Wally Smith:
That’s excellent. Have you guys ever missed a distribution payment?

Patrick Lam:
Absolutely not. And that’s one of the things really pride ourselves on. We haven’t stopped distributions. We haven’t-

Wally Smith:
You haven’t lowered distribution?

Patrick Lam:
We haven’t stopped distributions. We haven’t suspended distributions. We haven’t lowered distributions. We are doing everything we say we’re going to do.

Wally Smith:
That’s excellent.

Wally Smith:
Okay. One last question, Patrick. This will be a total softball for you. But you’re one of the top selling DST sponsors in the industry within your offerings. What are some of the key differences? How come you’re so successful? And how can you offer the generally higher yields that we’re seeing from your firm?

Patrick Lam:
Absolutely. I think one of the things that sets us apart from other sponsors in the marketplaces, we listen. And we not only listen to our advisors, but we listen and take action. And so I remember having this conversation with, I believe, you and your team at Ridgegate Financial when we talked about our disposition fee. And it was simple. Our first DST that we ever came out with didn’t subordinate the disposition fee to the return of capital to our investors. And what we did after our conversation with you and Rich and the entire team at Ridgegate Financial was very simple. We said it would make a lot of sense and make our story a lot more powerful if we don’t take a disposition fee unless we do our job.

Patrick Lam:
And our job is very simple. We continue to pay out the high income that we have with senior housing. We return all your client’s money and their entire capital. And at that point, that’s when we deserve a disposition fee. And we understand that. And the good thing about that is now, that makes our structure aligned with every single investor in the market.

Wally Smith:
Yeah. Well, and as you know, that’s the way we approach our business. We try to line up with the client, and when they win, we win and vice versa. So really enjoy working with your firm. The responsiveness has been fantastic. Work mostly with you was fine, and it’s been a great relationship. We look forward to what the rest of this year holds and appreciate your time. Thanks for coming on.