Will rates continue to rise? How high is it going to be? Our guest today, Eric Panecki shares his insight as a lender and economist on interest rates, inflation, and what he expects to happen in the real estate market over the next months.
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Eric will also speak on things to consider about bridge debt as he shares his background on how he got into the real estate business and started out their private mortgage and origination company, Leverage Capital Ventures. They lend out money to real estate investors who are buying multifamily, new construction and value add. He’ll talk about how they built their team and the culture they have in the company that has helped them scale fast.
Key Points From This Episode:
- Eric got into the real estate business in search of financial freedom.
- He started out in the debt space, lending to real estate investors working for a small hedge fund.
- He only lasted for 9 months in that job. Then he flipped houses and did the wholesale.
- Afterwards, he focused on multifamily space.
- Eric noticed a need for bridge debt.
- He co-founded Leverage Capital Ventures, a private mortgage, and origination company.
- They have both equity and debt in-house.
- What were their investors’ concerns about bridge debt?
- Eric speaks on the risks of getting a bridge debt right now.
- His advice is to get a 30-year term financing even when interest rates are higher.
- What are his predictions for the real estate market over the next six to 12 months?
- What are his best sources for meeting new investors?
- What are the daily habits that have helped him achieve this level of success?
- How does he like to give back?
“What we saw in the multifamily space is that on the bridge debt side, there was kind of a need in the market for short-term debt for when you’re acquiring these multifamily assets with value-add potential and then growing them in adding value and then refinancing. There wasn’t anyone out there really doing the bridge side of things super effectively, we saw that as an opportunity to create our niche in the debt space, and we started lending out money to real estate investors here buying multifamily new construction value-add.” [0:04:16]
“We’re starting to do some philanthropic things around our city to teach financial literacy in the city of Newark, that’s where we’re located, and just ways that we could give back and teach that so then, later on, these people can live a life where they don’t have to be so buried in by debt.” [0:06:59]
“Well, many syndicators aren’t gonna have a million bucks just laying around for them and they would like to potentially pursue all five deals. So, what EMD funding would allow you to do is fund that deposit upfront, right, and allow you to take control of that property without having to now, scramble and potentially lose the deal because you don’t have access to those funds. So, it’s really meant to give someone a head start in a super competitive market where you have to move very quickly and have to have access to capital very quickly.” [00:09:49]
“My biggest lesson is people invest in people… At the end of the day, if they trust you and they like you, they’ll probably gonna give you money.” 00:17:13]
Links Mentioned in Today’s Episode:
About Eric Panecki
Eric is an innovative Real Estate Finance professional with an extensive background in capital placement, real estate acquisitions, data analytics, and marketing. Prior to founding both Leverage Companies and Leverage Capital Ventures Eric’s work experience was primarily focused on the real estate hedge fund and private lending space. Eric has been able to “Leverage” his experience in structuring intricate capital stacks by finding creative solutions to complex problems, to garner a reputation for being a closer and a deal maker.
Eric is a graduate of West Virginia University with a bachelor’s degree in Economics. His high business acumen and entrepreneurial drive have been present from an early age starting his first business at 13 years old and has since been a participant in numerous successful business ventures to date. In 2018, Eric became one of the founding partners in Leverage Companies. Leverage Companies is a real estate acquisition company that utilizes a proprietary deal sourcing platform and data-driven approach to sourcing and acquiring real estate investment opportunities on a national level.
In 2021, Eric took his entrepreneurial spirit and data-driven approach in the real estate financing industry to launch Leverage Capital Ventures, a Private Mortgage Origination company. With his passion for building teams and businesses alike, Eric has helped fuel Leverage Capital’s rapid growth, originating over $100+ million in real estate bridge financing in its first year. Eric’s expertise in data analytics, business development, and capital placement has proven vital in Leverage Capital Ventures’ success in disrupting and distinguishing itself in the real estate private lending space.
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