
Business Breakdowns
Alternative Lending in Real Estate - [Business Breakdowns, EP.195]
Dec 11, 2024
Josh Zegen, co-founder and managing principal of Madison Realty Capital, dives into the fascinating world of commercial real estate lending. He shares insights on the evolution from hard money lending to a comprehensive capital provider with over $21 billion in assets. Josh discusses how recent market dynamics, post-COVID interest rates, and innovative financing methods are reshaping the landscape. From managing borrower defaults to the contrasting performance of various real estate sectors, this conversation uncovers the complexity and opportunities in today’s lending market.
01:01:35
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The evolution of commercial real estate lending has moved from hard money lending to a significant private credit player since 2004.
- Strategic partnerships and detailed underwriting have allowed Madison Realty Capital to adapt and thrive amid changing market conditions like post-COVID interest rates.
Deep dives
Interest Rate Impact and Investment Opportunities
The recent interest rate cuts by the Federal Reserve have resulted in decreased yields on savings accounts, prompting investors to seek alternative investment opportunities. A bond account can provide yields of 6% or higher through a diversified portfolio of high-yield and investment-grade corporate bonds, which presents a compelling option for those looking to capture higher rates. As traditional bank lending practices evolve, alternative lending sources like private credit are gaining traction, providing a necessary avenue for borrowers who are increasingly reliant on quick capital. This shift in the market represents a unique opportunity for investors to explore innovative financial products.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.