POWERS #257: Kyle O'Hehir - Co-Founder of Constitution Lending - Crack Houses, Buying Distressed Debt, & High Yield Loans
Jan 3, 2023
Kyle O'Hehir, co-founder of Constitution Lending and a specialist in real estate debt investing, shares his fascinating journey from a J.P. Morgan trading desk to buying crack houses. He discusses the thrill of distressed real estate and different high-yield loan strategies. O'Hehir also explores the emotional challenges of transitioning from Wall Street to entrepreneurship and navigates the complexities of acquiring non-performing loans. He provides keen insights on the 2023 real estate market, emphasizing the importance of data in making investment decisions.
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Fear Keeps People on Wall Street
- Wall Street career often traps people due to fear of uncertainty and running a business.
- Many prefer steady trading desks over creating and operating a company.
Volatility Hits Lending Hard
- Interest rate volatility has spiked daily moves in the 10-year yield, causing pricing stress.
- Many securitization firms lacked hedges and collapsed as spreads widened sharply.
Buying Distressed Loans Strategy
- Kyle often buys non-performing loans at discounts because most bidders don't care about them.
- He typically aims to take possession of the asset to create value or resell.