Nick Timiraos is the chief economics correspondent for The Wall Street Journal. Responsible for covering the Federal Reserve, Timiraos is the most trusted source for reporting on how the Fed is navigating the most volatile interest rate environment in decades. Timiraos’ fascinating book about the monetary and fiscal response to the COVID pandemic “Trillion Dollar Triage” was described by Warren ...
As Livi Kapital sees the market shift, we expect to find new opportunities to invest in. One of the most important questions we ask the sponsor, both when brokering equity or for our direct investments, is “How was the deal sourced?" And "What is the seller profile, and why are they selling? These questions are fundamental. During the past three ...
In 2022, SOFR became the dominant benchmark interest rate for floating-rate commercial real estate loans, replacing LIBOR, which had been used for decades. SOFR stands for Secured Overnight Financing Rate, and it is the rate charged for overnight loans secured by U.S. Treasuries made among financial institutions and governments. These overnight loans are part of the multi-trillion-dollar “repo market,” which ...
I recently came across a Midwest multifamily deal that was for sale. I had seen the seller around social media. How could I not? The seller routinely shows off his private jets and how many millions he is making for his investors (which I don't doubt since he was in multifamily since 2013). Watching the marketing material, you get the ...
In the past week I've been presented with three deals that had same story: Sponsor reaching the end of term on their bridge debt-->attempts to refinance--> proceeds offered from permanent lender fall short of bridge balance. Need cash at close. To explain this dilemma, here’s the following example. Say you bought an asset for $25M and planned to spend $5M ...
This piece by Ben Lapidus was originally published on Spartan Investments. Today, you can’t turn on the news without hearing speculation about a recession. What would it mean for our economy? Has the definition changed? As a commercial real estate investor, you’re likely considering how shifts in the market may impact your bottom line. You may also be wondering how ...
I love syndicators. I respect what they do. It takes guts to buy deals as an operator. They exhibit the ability to take responsibility, execute, and make money for their clients. However, as investment capital becomes harder and harder to come by, some of the marketing that I’m seeing from syndicators is becoming troubling, to say the least. It's OK ...
This piece by Rob Beardsley was originally published on Lone Star Capital. The more deals a sponsor does, the higher likelihood that they are going to have to make an unanticipated capital call for one of their properties. A capital call is a request by an investment manager for additional funding from investors in an existing investment. In fund structures ...
I get this question a lot. But unfortunately, it's really not the right place to start when pitching a deal to a large check writer. Sponsors come to me thinking that if their model shows a high IRR, it’ll improve the odds of their deal getting interest. I wish that were so. Large check writers, like the kind we work ...
The normal mortgage works very simply. The lender lends and takes a lien (almost always a first lien) against a real asset, typically lending between 60% to 75% of the purchase price of the asset. In return, the lender receives its money back with interest over a period of time (loan term) and based on an agreed upon payment schedule ...
Lev is using technology to transform the CRE financing process.
Lev is using technology to transform the CRE financing process.