Webinar Recording: Headwinds and Opportunities in the Commercial Real Estate Market

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Mitch Rosen, Sr. Director of Real Estate at Yieldstreet, was joined by Avatar Financial Group’s T.R. Hazelrigg (President & Co-Founder) and Jerry Zevenbergen (CEO & Co-Founder) to discuss the present opportunities and headwinds commonly found in the commercial real estate market.

Avatar Financial Group is one of Yieldstreet’s origination partners, having funded over $100M on the platform last year alone. Founded in 2003, Avatar provides real estate loans that don’t meet traditional bank standards, and offer solutions for borrowers who don’t have time to wait. Avatar has earned a reputation for its honest, straightforward approach, and for its staff who is dedicated to providing smooth, successful transactions.

In this webinar, Mitch, T.R., and Jerry touched on several points including:

  • Changes in consumer behavior and the short/long-term impact on commercial real estate
  • Portfolio management strategies and working with borrowers in inauspicious market conditions 
  • Capital deployment strategies within CRE

One of the key takeaways from the discussion was that many bridge lenders depend upon significant financial leverage. When leverage providers hold back on financing, those lenders are put on the sidelines. Avatar’s business depends largely on the support of their current client base (i.e. individuals, family offices, and platforms such as Yieldstreet), and as a result, they continue to pursue new opportunities.  

Avatar expects many conventional or bank borrowers to have issues with loan compliance beginning in the 2nd quarter of next year. Without loan compliance, these lenders will call their notes due. Other lenders in their space impose similar requirements on their borrowers that may give rise to more issues in the near future. Bridge lenders could be a significant source of financing for those who had a dip in business profit or rent collections in 2020.

Watch the full video above for more of the conversation between Mitch, Jerry, and T.R. and be sure to join us on our next webinar, held live every Wednesday.

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