Today’s podcast guest is Nate Trunfio, who is chief revenue officer at Lima One Capital, a bridge lender backed and owned by a REIT, MFA Financial.
Nate talks about the kinds of terms Lima One has been and continues to offer borrowers, he describes the trends in bridge lending he's been seeing over the last three years, and he talks about where he sees the market going through the end of 2024.
Nate also discusses the degree of distress the multifamily market today, where the distress is occurring, and he describes the characteristics of sponsors facing the hardest challenges to get out of this high interest rate environment.
Nate brings a wealth of lending experience and a unique perspective on navigating the current market’s complexities, emphasizing the importance of strategic asset management and realistic underwriting.
You’ll learn how lenders like Lima Capital are mitigating risk, how they are identifying opportunities as the market evolves, and you’ll gain a deeper understanding of the intricacies of commercial real estate market lending during this downturn.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Today's podcast guest is Brian Underdahl who is Chief Analytics Officer at Nuvo Capital Partners, a family office backed rescue capital shop with a difference.
Much of the so called 'rescue' capital you see in the market today is preferred equity. Pref equity typically comes into deals charging mid-teen returns, takes a senior position to existing GP/LPs, takes no share of the upside, and keeps the existing ownership in place, subject to performance hurdles.
Nuvo's model is to buy distressed multifamily deals outright at fair market value and then provide the selling entity's existing general partners and limited partners a share of the upside in the new, buying entity.
In today's episode you'll learn how this kind of rescue capital works and what kinds of deals it looks for.
Of particular interest today is that Brian has personally vetted over 500 sponsors nationwide in direct conversations with them, and shares his insights into what makes the good stand out from the bad.
Lastly, a note of thanks to Brian for having contributed (kind of) to my latest book, Capital Calls and RESCUE Capital. Brian and I recorded a Q&A session where he answered my questions about advanced real estate syndication terminology.
It's what I call 'real estate syndication 2.0' and is the language of a downturn.
Brian fields over 25 advanced questions from me and you can get free access to the entire series as a bonus for buying my latest ($7) book, Capital Calls and RESCUE Capital, here: https://learn.gowercrowd.com/rescue/
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.
My guest today is Alex Nicoll, reporter at Insider, who penned an article earlier this month (September 2023) headlined ‘Real Estate Crowdfunding is a House of Cards.’
How could I resist but to give him a call, as real estate crowdfunding is my lifeblood these days, and ask him more about what he was writing about, what he discovered, and what was the background to the article.
Well, the article was focused on the PeerStreet bankruptcy that emerged over the last few weeks and was not an indictment of the entire online real estate syndication industry and what you are going to learn today from Alex is how he did his research into that bankruptcy, the kind of documents that he looked at, and the people he spoke to.
Alex shares insights into what he discovered and his thoughts about real estate crowdfunding in general and you’ll also learn about the business model of Peerstreet, how they raised venture capital, and how much venture capital they did actually raise to put their business plan together.
It is a mind-boggling number.
We also discuss the various factors that have impacted this particular niche in commercial real estate crowdfunding, which is the single-family home fix and flip market, and the factors that have driven Peerstreet to their unfortunate demise.
It was a pleasure talking with Alex and, although the sounds quality is not the best, I’m sure you’ll find the conversation and his insights of great interest.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.
What you are going to hear in my conversation with today’s guest, CRE debt expert James Eng of Old Capital Lending in Texas, is going to make you wonder if we aren’t facing the GFC 2.0 – but this time in commercial real estate, especially multifamily, instead of residential real estate in the post 2007 downturn.
Having done over $2 billion in lending during 2021 and 2022 combined, you will be shocked by the percentage of those loans projected to fall into default without significant new injections of cash, or that could face forced sales, or be foreclosed on by their lenders.
James explains how debt sources shifted from early 2021 in a way that changed lending standards, adjusted loan to value ratios, and competed on pricing that led to, and I’m not sure if he uses the term, but led to a bubble in asset pricing.
Not only that, but you’re also going to learn how these loans get packaged up into tranches that are rated AAA to Bbb, and are then sold off to institutional investors who, in turn and in many cases, then sell them back to retail investors who end up being the final resting place for all risk.
If you’ve not read The Big Short by Michael Lewis, don’t bother. Just listen to my conversation with James today. If you have read it, listening to James is going to get you excited about the possibilities of being ahead of the curve this time around – and for multifamily real estate no less!
If you want to know how to shore up an existing deal or want to discover where to find multifamily deal flow as pricing resets, this podcast will provide you with guidance on where to look and what to look for.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.