The lending game has changed, and how you approach it could define your success. The key to this is understanding lenders, performing due diligence, and setting realistic expectations. Today we talk with Kevin Riordan, a veteran of commercial real estate, about how institutional investors view up-and-coming sponsors. We open the show by taking a look at Kevin’s professional history, diving into his experiences in mortgages, mezzanine debts, and CMBS. Kevin then walks us through the topic of lenders, dissecting the different types of lenders, and telling us what their functions are.
Our gracious sponsor:
Gene Trowbridge and Jonathan Nieh, founding partners of the top syndication firm Trowbridge Law Group LLP have a legal team with over 50 years of combined experience in real estate syndication and the practice of real estate securities law. Over this time Gene and his partners, in several past firms and currently, have helped clients raise close to $5.0 billion dollars in offerings by empowering entrepreneurs to raise capital legally. To learn more about Trowbridge Law Group LLP, visit our website at www.trowbridgelawgroup.com or follow us on Facebook, Instagram, or Twitter.
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As our conversation develops, Kevin talks about the evolution of lenders and touches on what he calls “alternative lenders,” as well as how they came to be. After discussing these new lenders and their role as private equity firms, Kevin shares his top tips on doing business. Toward the end of the show, we shine a light on real estate’s tougher side, as Kevin talks about downturns, and gives his step-by-step process on preparing for the worst. To wrap up the episode, Kevin tells us about his daily habits, how he keeps disciplined, what he owes his success to, and how he likes to give back. Be sure to tune in!
Key Points From This Episode:
- Introducing today’s guest, Kevin Riordan.
- We take a look at Kevin’s professional life in real estate and academia.
- How Kevin made a transition from accounting into investing.
- Hear about how different scenarios require different kinds of lenders.
- Kevin talks about the types of assets different lenders are interested in.
- Why life companies might turn you down, even if you meet all their criteria.
- Kevin defines what a life company is and describes its characteristics.
- How CMBS companies may look like life companies but are entirely different.
- The ways banks have changed and how they’re lending money differently.
- Exploring the rise of alternative lenders.
- How institutional investors view up-and-coming sponsors.
- Insights into looking credible and attractive to certain lenders.
- Traps and things to look out for while looking for investment.
- Kevin shares how he prepares for downturns.
- How Kevin envisions the future of real estate.
- Ways Kevin has managed to maintain discipline.
[bctt tweet=”When we use the word lender, it sounds like such a generic term. Okay, we lend money for the real estate asset and we get paid back. But really, there are so many different slices of lending. — Kevin Riordan” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Kevin Riordan
Kevin is an accomplished senior commercial real estate investment professional currently serving in faculty and administrative roles for Montclair State University. He has a long-standing record of effective idea generation buoyed by a reputation for distilling both the big picture and complex problems into simple components for action. He also has outstanding presentation and communication skills and the ability to manage time-sensitive projects, motivates teams, and implement organizational directives.
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