Business Breakdowns
Episode 195 Alternative Lending in Real Estate
Business Breakdowns

Episode 195: Alternative Lending in Real Estate

Business Breakdowns

Episode 195

Alternative Lending in Real Estate

Josh Zegen is the Managing Principal of Madison Realty Capital. We cover the basics of financing a commercial real estate project, the structural changes in the industry since COVID, and the impact of rates, volatility and tariffs on demand for loans.

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Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:05:22) Starting Madison Realty Capital

(00:06:44) Evolution of the Lending Market

(00:10:08) Construction Lending Dynamics

(00:15:36) Risk Management and Portfolio Strategy

(00:18:49) Leveraging Private Credit

(00:30:31) Portfolio Management and Challenges

(00:33:32) COVID-19's Impact on Real Estate Projects

(00:34:49) Strategies for Loan Workouts

(00:37:38) Post-COVID Market Dynamics

(00:39:45) Opportunities in Loan Purchases

(00:42:53) Sector-Specific Real Estate Insights

(00:49:27) Impact of Work Schedules on Real Estate

(00:51:22) Interest Rates and Market Impact

(00:55:45) Future Opportunities and Market Trends

Alternative Lending in Real Estate

Introduction

Matt
This is Matt Reustle, and today we are breaking down commercial real estate lending with Josh Zegen, co-founder and Managing Principal of Madison Realty Capital. Now we've covered the underlying private credit industry in our primer earlier this year, but real estate is particularly interesting. It's an asset class in and of itself, but you mostly know of it from the equity side.

Josh and his team at Madison launched in 2004 and have evolved from hard money lender when there was really no alternative industry called commercial real estate lending. And today they've developed into a single source capital provider with 21 billion in assets under management.

No matter how often we talk about it, the shift away from traditional bank lending cannot be overstated enough. And I think Josh gets into great detail here about how it's not an all-or-nothing story when it comes to real estate.

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