Navigating Real Estate Lending Shifts

This chapter explores the evolving dynamics of the real estate lending market in the wake of a banking crisis, emphasizing the growing role of private credit firms. It highlights innovative financing methods filling the gaps left by traditional banks, particularly in high-value projects. Additionally, the discussion encompasses the complexities of managing fund operations, borrower defaults, and the impact of market disruptions like COVID-19 on real estate strategies.

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Today we are breaking down commercial real estate lending with Josh Zegen, co-founder and managing principal of Madison Realty Capital.

Josh and his team at Madison launched in 2004 and evolved from a hard money lender when there really was no alternative industry called commercial real estate lending. They've developed into a single-source capital provider today with more than $21 billion in AUM.

Josh gets into great detail here about how it's not an all-or-nothing story when it comes to real estate. We covered some of the basics on construction loans, the life cycle of capital, and new developments. Then, we get into some of the current market dynamics, post-COVID interest rates, post-SVB, and much, much more.

Please enjoy this Breakdown of commercial real estate lending.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:05:22) Starting Madison Realty Capital

(00:06:44) Evolution of the Lending Market

(00:10:08) Construction Lending Dynamics

(00:15:36) Risk Management and Portfolio Strategy

(00:18:49) Leveraging Private Credit

(00:30:31) Portfolio Management and Challenges

(00:33:32) COVID-19's Impact on Real Estate Projects

(00:34:49) Strategies for Loan Workouts