Communication is key. We’ve all heard it before, but we will hear it a thousand times over. If you’re in the real estate business, you’re in the people business. Whether you’re dealing with lenders, sponsors, operators, tenants, or potential buyers, expect the unexpected! Our guest today is Clay Allen, who is the Senior Director at Old Capital Lending and has over 20 years of experience providing debt, equity, and asset management for multifamily owners and operators. Based in the Old Capital’s Atlanta office, Clay is focused on helping investors across the southeast to obtain appropriate financing for their multifamily acquisitions.
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He also likes to leverage his experience to write his clients sound feedback on their underwriting assumptions as well as provide asset management advice after the close. Tuning in today, you will hear Clay speak about how the lending environment has changed as a result of COVID-19, what lenders want to see on your team or from asset management teams, and how to go about drafting a business plan, and you’ll also hear some tips on what it should look like. This and so much more on today’s show!
Key Points From This Episode:
- More about Clay and his background.
- We jump into the current lending environment and what happened over the last 6 months.
- What’s new today that you should know about; debt service reserves and experience.
- Clay sheds light on what Freddie and Fannie want to see on your team and how that has changed due to COVID-19.
- How sponsors have restructured deals to allow for reserves.
- From the lender’s seat: what they want to see from asset management teams.
- Clay talks us through the process of drafting a business plan.
- As a lender, Clay likes to see people prepare for a potential downturn by staying liquid and having cash reserves.
- Why you shouldn’t immediately run to capital reserves when you run into cash issues.
- Clay’s predictions for the market over the next 6-12 months: no shying away from multifamily.
- Daily habits that helped him achieve success, from resetting the bar to a morning routine.
- The number one thing that has contributed to his success: continuing to move the bar.
- His best place to meet new investors: the Clubhouse app.
- How Clay likes to give back by being an active member of his local church.
[bctt tweet=”Communication is really key with the lenders. — Clay Allen” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Clay Allen
Clay Allen is a Senior Director in the Atlanta office for Old Capital. With over 20 years of commercial real estate experience, Clay is focused on providing debt and equity solutions to his clients nationwide. Before joining Old Capital, Clay asset managed a $1.5 billion portfolio of multifamily assets, totaling nearly 10,000 units across several major southeastern markets. He has also spent several years with regional banks and GE Capital, where he underwrote portfolio and CMBS debt as well as joint-venture equity investments. Clay graduated from Samford University with a degree in Business Management, received a Master’s degree in Commercial Real Estate from Georgia State University, and holds the CCIM designation. He is a native Georgian and resides in Atlanta with his wife and three daughters.
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