356. Tightening Standards And Responding To Market Trends With Michael Coffee

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Michael has been involved in commercial real estate for almost 20 years in various capacities He started as an analyst responsible for reviewing transactions and coordinating with the lender to package and document the loan file Over a 10-year period Michael applied his problem-solving skills to these transactions to help facilitate loan closings That experience has led to Michael s transition from packaging loans to origination Few loan officers have the knowledge depth given his history with every facet of the loan process It sets him apart and makes him uniquely qualified to review loan scenarios for clients Michael has lived in the Pacific Northwest his entire life and currently resides in Central Oregon with his wife and 2 children In this episode Michael shares his expert insight on the current state of the lending environment and how the pandemic has caused a shift in post-COVID work environments He talks about the need for repurposing office spaces into multi-family homes and retail spaces with necessary services as well as what lenders look for when investing in these projects To learn more about Michael listeners can visit his website at Stack Source 00 01 – 03 15 Opening Segment Michael discusses his company Stack Source His company matches investors with potential lenders based on data points such as location loan value asset type etc 03 16 – 06 46 Tightening Standards And Responding To Market Trends His company provides transparency to borrowers by allowing them to see who is quoting and what those are Keep their database trim and fit and has a feedback system internally to ensure they work with lenders that meet their criteria Equity placement has become difficult for value-add properties Lenders prefer lower leverage debt on the property with long-term decks Interest rates have leveled off recently but are expected to increase over the next year Borrowers have adjusted quickly to rising rates and are now pressuring sellers for discounts Lenders are most comfortable with 5-7 year terms and are nervous about 10-year terms Borrowers should be patient when looking for deals and look at higher cap rate markets 06 47 – 30 29 Closing Segment Michael advises listeners on how to stay up to date on the lending environment Michael shares where you can get in contact with him links below Quote s Be patient as you re out looking and be patient in what you re looking at And underwriting that exit is important and being reasonable and rational about what will that look like at the end Michael Coffee You can connect with Michael through his Website Stack Source LinkedIn Michael Coffee WANT TO LEARN MORE Connect with me through LinkedIn Or send me an email at sujata luxe-cap com Visit my website www luxe-cap com or my YouTube channel Thanks for tuning in If you liked my show LEAVE A 5-STAR REVIEW like and subscribe Click here to visit this podcast episode