"Survive Until 25”: CRE Debt Strategies Explained, ep.431

Are you prepared to navigate the challenges of the “looming commercial real estate debt crisis"? In this episode of REady2Scale, Jeannette Friedrich sits down with Dillon Freeman, Senior Loan Officer at Fidelity Bancorp Funding, to discuss the current landscape of commercial real estate debt, refinancing strategies, and how investors can adapt in a shifting market. With rising interest rates, cap rate compression, and widespread market uncertainty, this conversation dives deep into the strategies operators are employing to stay afloat and the opportunities emerging in private credit and debt funds.

Key Takeaways:

-"Survive Until 25" Mindset: Understand why this mantra resonates with investors facing record loan maturities amidst high interest rates and diminished property valuations.

- Creative Solutions for Looming Debt Maturities: Explore cash-in refinances, joint venture partnerships, and the role of preferred equity in navigating today's challenging environment.

- The Relationship Between Interest Rates, Cap Rates, and Property Valuations: Gain insights into how rising cap rates are impacting valuations and what the future may hold for commercial real estate pricing.

- Opportunities in Private Debt Funds: Learn how debt funds are filling gaps left by traditional banks, offering investors double-digit returns and greater liquidity.

- Key Red Flags When Evaluating Debt Funds: Discover essential due diligence tips for evaluating the track record, credit discipline, and operational transparency of private credit managers.

- Challenges of Small-Balance Loan Origination: Understand the complexities sponsors face when securing smaller loans and why professionalism and sponsor liquidity matter.

- Advice for Building Long-Term Wealth: Dylan shares why "consistency beats intensity" in investing and how to stay in the market for the long haul.

Whether you're an operator, passive investor, or simply someone looking to understand the dynamics of the commercial real estate debt market, this episode is packed with actionable advice and unique perspectives to help you navigate today's challenges and position yourself for future success.

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Credits Producer: Blue Lake Capital Strategist: Syed Mahmood Editor: Emma Walker Opening music: Pomplamoose

Timestamps 00:00 Introduction and Guest Welcome 01:11 Survive Until 25: The Debt Crisis 03:32 Creative Solutions for Loan Maturities 07:01 Cap Rates and Market Adjustments 14:04 Income and Debt Funds Explained 28:48 Lightning Round and Closing Remarks Learn more about your ad choices. Visit megaphone.fm/adchoices