Navigating today’s real estate financing landscape is tougher than ever, with rising interest rates and tighter lending environments. Jake Clopton, founder of Clopton Capital, explains how to overcome these challenges by leveraging strategic capital sources, understanding the trade-offs between equity and debt, and effectively presenting loan packages to lenders. From creative uses of debt funds to risks in pre-development financing, Jake shares practical advice and insider tips to help developers and investors secure funding and manage risk in a volatile market.

Guest Bio

Jake Clopton is the founder and president of Clopton Capital, a leading commercial real estate financing firm specializing in debt origination, equity placement, and structured capital solutions. With over 16 years of experience, Jake has facilitated transactions across multifamily, retail, industrial, hospitality, self-storage, and other asset classes. Known for his expertise in creative financing strategies and his deep network of capital sources, Jake helps clients navigate complex financing challenges and achieve their investment goals.

Episode Highlights and Chapters

[00:01:00] Jake’s Background and Expertise

Jake shares how he founded Clopton Capital and the broad scope of his work, from fixed-rate loans to innovative financing solutions for specialty projects.

[00:03:00] Deciding Between Debt and Equity

A breakdown of how ownership structures influence the choice between equity and debt, with considerations for risk, cost, and recourse.

[00:05:25] What Are Debt Funds?

Jake explains how debt funds fill the gap left by banks, offering flexible, entrepreneurial lending options while carrying higher costs.

[00:07:47] Pre-Development Financing Risks

The pros and cons of leveraging debt for pre-development costs, and why timing and planning are critical to avoid costly delays.

[00:10:31] Securing Construction Loans

Jake reveals how the lending environment has shifted, requiring more equity and extensive outreach to secure competitive construction financing.

[00:13:00] Alternative Financing Tools: A Practical View

An honest look at the pros and limitations of PACE loans, including where they can add value and why they’re not always the best solution.

[00:15:08] Packaging a Deal for Success

Key advice for presenting loan requests: organization, transparency, and understanding the underwriter’s perspective.

[00:21:00] Market Momentum After the Election

Jake discusses the significant uptick in investor activity and deal flow, driven by renewed confidence in the market.

Contact Information

To connect with Jake Clopton, visit:

• Website: cloptoncapital.com

• LinkedIn: Jake Clopton on LinkedIn

For more episodes and resources, visit the host, Eugene Gershman, at giscompanies.co/podcast.

Wayne Courreges III, Managing Principal at CREI Partners, shares a wealth of knowledge on mastering risk and maximizing returns in commercial real estate development. From leveraging seller financing to building relationships with municipalities, Wayne reveals how to navigate zoning challenges, evaluate investment risks, and structure deals that attract and retain investors. With $50 million in assets under management and a portfolio spanning multifamily, self-storage, and build-to-rent communities, Wayne’s insights offer a roadmap for success in real estate development.

Guest Bio

Wayne Courreges III is the Managing Principal of CREI Partners, a firm dedicated to helping investors diversify into commercial real estate. Specializing in multifamily, self-storage, and build-to-rent developments, Wayne brings over 16 years of experience at CBRE to his leadership role. Based in Bryan-College Station, Texas, Wayne is known for his strategic approach to real estate investment, with $50 million in assets under management and a hands-on commitment to every project.

Episode Highlights and Chapters

[00:02:00] From CBRE to CREI Partners

Wayne discusses his career journey, including his transition from 16 years at CBRE to managing CREI Partners and overseeing $50 million in assets.

[00:04:00] Understanding Risk and Investor Profiles

Wayne delves into the risk factors of new developments versus existing properties and how he aligns opportunities with investor preferences for cash flow or equity growth.

[00:09:00] Deal Structures and Target Returns

Explore CREI’s approach to structuring investments, offering 7–10% cash-on-cash returns and targeting 15% IRR for existing properties and 20–25% IRR for developments.

[00:14:00] Reducing Risk Through Zoning Expertise

Wayne explains how he mitigates risk by handling zoning and entitlement work before raising equity, leveraging seller financing, and focusing on local markets like Bryan-College Station.

[00:23:00] The Power of Relationships

From working with city councils to engaging with HOAs and community members, Wayne highlights the importance of building trust and addressing concerns to ensure project success.

[00:27:00] Leadership in Development

Wayne emphasizes the role of developers as leaders, balancing delegation with hands-on involvement in critical aspects of a project, such as stakeholder engagement and team coordination.

[00:30:00] Advice for Investors and Developers

Wayne offers actionable advice for passive investors and active developers, stressing the value of education, showing up, and fostering meaningful connections.

Contact Information

To learn more about Wayne Courreges III and CREI Partners:

• Visit CREI Partners

• Connect with Wayne on LinkedIn: Wayne Courreges III

• Explore free educational resources at Passive Investor Coaching

For more expert insights into real estate development, visit https://giscompanies.co/podcast/.

Real estate development offers incredible opportunities but demands careful planning and preparation to avoid costly mistakes. Sonny Moyers explains why building the right team and conducting a thorough feasibility study are essential for success. He shares insights on navigating hidden costs, creating strong contracts, and avoiding common pitfalls that derail projects. Whether you’re an aspiring developer or an experienced investor, Sonny’s practical advice will help you build wealth and legacy in real estate.

Guest Bio

Sonny Moyers is a highly accomplished real estate professional with more than 50 years of experience. He holds a Bachelor of Science in Management and Communications and a Master of Science in Psychology from Abilene Christian University. As President of The Renaissance Group, Sonny has led one of the most successful real estate teams in the Dallas-Fort Worth area. His achievements include being named REALTOR® of the Year by the Dallas Builders Association and earning recognition as a top producer for over a decade. Known for his engaging speaking style and actionable strategies, Sonny is committed to helping others succeed in real estate.

Episode Highlights and Chapters

[00:01:00] The Two Paths to Development

EG outlines the two primary ways individuals enter real estate development: institutional training and independent projects.

[00:05:00] The Role of Feasibility Studies

A comprehensive feasibility study is crucial for any project. Sonny discusses how to evaluate costs, timelines, and risks to ensure a successful outcome.

[00:10:00] Building Your Support Team

Learn how to assemble a team of professionals—including architects, appraisers, and attorneys—to guide your project from start to finish.

[00:15:00] Identifying Hidden Costs

Sonny explains often-overlooked costs like holding expenses, insurance requirements, and unexpected contractor fees, and how to plan for them.

[00:22:00] The Power of Detailed Contracts

Protecting yourself starts with the right contracts. Sonny shares real-world examples of how clauses like liquidated damages can prevent project delays and financial loss.

[00:26:00] Lessons for Developers

Sonny wraps up with a call to action: start with a solid plan, work with knowledgeable professionals, and approach development with patience and diligence.

Contact Information

To learn more about Sonny Moyers and his work, visit his website: https://www.thearchitectureoftherealestatepractice.com/

YouTube: @AREP2023

LinkedIn: https://www.linkedin.com/in/theodeamoyersgroup/

For more episodes of Real Estate Development: Land to Legacy, visit Eugene Gershman’s podcast page: https://giscompanies.co/podcast/.

Eugene Gershman of GIS Companies took the stage at the Bisnow Multifamily Conference in Seattle to deliver a sharp and humorous take on innovation in multifamily real estate development. From his candid thoughts on sustainable building practices and technological amenities to a critique of the often impractical allure of luxury finishes and rooftop decks, Eugene's insights brought laughter and valuable lessons to the crowd. This episode captures his dynamic session, offering a fresh perspective on what really matters in real estate development.

My Bio
Eugene Gershman is the CEO of GIS Companies, a family-run real estate development firm with over 20 years of experience. GIS Companies specializes in partnering with property owners to develop projects that meet market demands while navigating complex zoning and regulatory landscapes. Eugene is a passionate advocate for pragmatic innovation in real estate, blending technology, sustainability, and market-driven decisions to create viable, future-ready developments.

Episode Highlights and Chapters

• [00:00:00] Introduction to Bisnow Panel
  Eugene introduces the episode, recorded live at the Bisnow Multifamily Conference, explaining his excitement for the event and the opportunity to share unfiltered industry insights.

• [00:01:00] The Evolution of Tenant Preferences
  Discussion of changing demands for home offices, shared spaces, and amenities post-pandemic, highlighting the fickle nature of tenant desires.

• [00:02:00] Practical Innovations: Smart Access and Parcel Lockers
  Eugene talks about the growing prevalence of technological features like smart access control and parcel lockers, emphasizing their convenience and market viability.

• [00:04:00] Sustainable Building: Pragmatism vs. Passion
  A candid look at sustainability certifications, cost-driven decisions like choosing Built Green over LEED, and why tenants rarely pay more for green features.

• [00:05:00] Amenities and the Perception of Luxury
  From rooftop decks to luxury vinyl plank flooring, Eugene critiques the industry’s obsession with luxury finishes and amenities, advocating for a more realistic approach.

• [00:07:00] Future of Multifamily Development
  Eugene shares his vision for modular construction, streamlined permitting, and adopting off-the-shelf designs to reduce costs and speed up project timelines.

• [00:09:00] Value of Technological Amenities
  Examining the financial practicality of features like fiber internet, smart devices, and shared Wi-Fi, with a focus on balancing tenant expectations and developer budgets.

Contact Information
For more on Eugene Gershman and GIS Companies, visit https://giscompanies.co/podcast/.

Let us know your thoughts on this episode via Spotify, YouTube comments, or by leaving a review!

Jay Conner shares insights on raising private money for real estate projects, emphasizing the importance of not relying on banks and instead creating a network of private lenders. He details his journey from begging banks for money to raising millions privately, explaining the strategies he employed, such as educating potential investors and leveraging relationships. Conner also discusses the benefits of using self-directed IRAs for real estate investments and how to offer attractive terms to private lenders. He invites listeners to join his Private Money Challenge and learn more through his podcast.

About Jay Conner

Jay Conner is a nationally acclaimed real estate investor whose early frustrations with traditional bank financing led him to explore alternative investment strategies. When his funding was abruptly cut during a market downturn, Jay devised a system to access private funding, securing $250,000 from his first prospect and over $2 million in just a few months. His system, “Where To Get The Money Now,” has since enabled him to generate substantial annual profits, making him a sought-after mentor and thought leader in the real estate space.

Episode Highlights and Chapters

[00:02:15] Overcoming Challenges in Real Estate

Jay recounts how restrictive bank terms and a market crash forced him to rethink his approach to funding.

[00:10:30] Creative Real Estate Strategies

Exploring Subject-To deals, Lease/Options, and their role in expanding investment portfolios.

[00:17:45] The Birth of the Private Funding System

Jay explains how he developed “Where To Get The Money Now” and secured his first $250,000 in private capital.

[00:26:50] Scaling with Private Money

The keys to accessing over $2 million in private funding and how it transformed his career.

[00:35:20] Tips for New Investors

Actionable advice on getting started in real estate and finding funding without relying on banks.

[00:44:00] Living in Abundance in a Small Market

How Jay has built a thriving business in a small-town environment while generating massive returns.

[00:52:15] Mentorship and Legacy

The importance of teaching others and creating a long-lasting impact in the real estate community.

Connect with Jay Conner

Website: https://www.jayconner.com/

LinkedIn: https://www.linkedin.com/in/privatemoneyauthority/

To connect with the host, Eugene Gershman, visit https://giscompanies.co/podcast.

The discussion explores the evolving dynamics of profitable short-term rentals, where hospitality meets real estate investment. George Salas provides insights into creating experiential properties that cater to families, business travelers, and vacation groups, emphasizing design, regulation navigation, and strategic market positioning. He shares how his portfolio leverages lifestyle-driven amenities, diverse target audiences, and strategic exit planning to deliver high returns. This episode unpacks everything from recession-resistant strategies to niche market insights, offering a blueprint for developers and investors aiming to tap into this lucrative industry.

About George Salas

George Salas is a visionary entrepreneur specializing in short-term rental investments and experiential real estate. With a background in hospitality and over 130 deals since 2018, George has mastered the art of creating high-cash-flow lifestyle properties that cater to diverse audiences. His expertise extends to designing niche strategies for recession-resistant markets and maximizing investor returns through thoughtful portfolio management. As the founder of Empress Capital Group, George is a leader in the short-term rental industry, offering innovative solutions for real estate investors seeking sustainable and profitable ventures.

Chapters/Highlights

[00:01:00] Introducing Lifestyle Assets: George Salas introduces his unique approach to short-term rentals, emphasizing experiential properties designed for families and larger groups.

[00:02:00] What Are Short-Term Rentals?: Breaking down the concept of short-term rentals and their unique advantages over traditional lodging.

[00:04:00] Catering to Diverse Audiences: How families, business travelers, and special occasion groups form the core customer base for lifestyle-focused rentals.

[00:06:50] Developers and the Short-Term Market: Insights into creating short-term rental properties, including the balance between equity and cash flow.

[00:09:30] Designing for Experience: Why amenities like rooftop hot tubs, designer walls, and experiential spaces matter in short-term rental design.

[00:15:00] Strategic Exit Planning: Reverse-engineering exit strategies for maximum portfolio value and appealing to institutional buyers.

[00:19:00] Investment Returns and Risks: Realistic returns in the vacation rental market and strategies to mitigate risks in fluctuating economic climates.

[00:22:00] Recession-Resistant Market Strategies: George’s methods for selecting markets that thrive during economic downturns, focusing on regional and secondary markets.

[00:28:00] Regulations and Market Research: A comprehensive look at navigating local regulations, HOA rules, and market analysis for short-term rentals.

[00:33:00] Creating Micro Resorts: Exploring the concept of mini-resorts with a focus on high-yield properties and lifestyle driven design.

Contact Information

For more information about George Salas, visit: http://empresscapitalgroup.com

Connect with George directly at: http://georgesalas360.com

LinkedIn: https://www.linkedin.com/in/georgesalas360/

To reach host Eugene Gershman, visit: https://giscompanies.co/podcast/

Real estate developer Andy McMullen discusses the growing trend of “build-to-rent” communities, explaining their appeal, economic advantages, and the challenges of development. He highlights strategic market selection, streamlined entitlement processes, and the increasing demand for single-family rentals. Andy also shares personal anecdotes from his career, offering valuable lessons on navigating financial hurdles, creating community impact, and delivering strong investor returns.

Guest Bio

Andy McMullen, a UCLA economics graduate, has built a 20-year career orchestrating nearly $1 billion in commercial real estate transactions. As Managing Partner at Legacy Acquisitions, he focuses on collaborating with world-class operators and providing premium service to investors. Outside of work, Andy dedicates his time to community service and family life with his wife and three children in San Diego, California.

Chapters

[00:00:00] Introduction to Build-to-Rent Development

Andy breaks down the concept of build-to-rent communities and their appeal to younger families and seniors.

[00:04:33] The Market Opportunity in the Southeast

Examining why the Southeast is a hotspot for build-to-rent developments, with advantages like lower costs and favorable municipal processes.

[00:12:30] Overcoming Development Challenges

Navigating zoning, entitlement, and financing hurdles in real estate development.

[00:18:00] Lessons from the Great Financial Crisis

Andy reflects on the 2008 financial crisis and its impact on his approach to risk and resilience.

[00:22:00] Raising Capital Under Pressure

A compelling story of adapting to unexpected financing changes and the importance of strong partnerships.

[00:25:15] Measuring Success in Real Estate Development

Balancing community impact with investor returns as key indicators of project success.

[00:28:00] Investor Returns and Time Horizons

Comparing returns for early versus late-stage investors and the shifting financial landscape.

[00:29:45] Advice for Aspiring Developers

Andy offers practical guidance, resources, and inspiration for newcomers to the real estate development field.

Contact Information

Learn more about Andy McMullen and Legacy Acquisitions at https://legacyacquisitions.com/

LinkedIn: https://www.linkedin.com/in/andymcmullen

Contact Eugene Gershman at https://giscompanies.co/podcast

Let’s talk about the intersection of AI and mortgage lending with Michael Vandi, the 24-year-old CEO of Addy AI. Michael shares insights into how his company is revolutionizing the mortgage process for real estate lenders by using AI to automate document review, compliance checks, and borrower follow-ups, speeding up what traditionally takes weeks down to mere days. He explains how Addy AI’s technology integrates seamlessly with lenders, helping them manage everything from initial credit checks to complex income and document verifications, making it faster and more efficient for loan officers to close deals. Michael also discusses the challenges of building a specialized AI solution for a heavily regulated industry, tackling issues like AI “hallucination,” and the future possibilities of integrating broader financial data to improve deal analysis and investment decision-making.

Guest Bio:

Michael Vandi is a visionary tech entrepreneur with a unique global perspective on the mortgage industry. Originally from West Africa, where homeownership practices are traditionally informal, Michael moved to the U.S. and was struck by the outdated technology in American mortgage processes. After earning a Master’s degree in Software Engineering and AI from Carnegie Mellon University, he co-founded Addy AI, a cutting-edge platform that leverages AI to streamline mortgage operations for lenders. Before founding Addy AI, Michael gained significant experience in enterprise AI at Amazon Web Services. His company is already recognized by Carnegie Mellon, GitHub, and the Silicon Valley Leadership Group, and Addy AI has been instrumental in saving top lenders hundreds of hours in loan processing.

Chapters:

[00:01:05] Introduction to Addy AI and the Mortgage Lending Space Michael explains how Addy AI uses AI-driven automation to streamline the loan application process for lenders.

[00:02:22] Who Uses Addy AI? Clarification on the platform’s primary users—loan officers and lenders—and how they benefit from AI integration.

[00:03:18] How Addy AI’s AI Automates Loan Scenarios Detailed breakdown of how Addy AI evaluates loan applications and credit policies using specialized AI models.

[00:06:00] Analyzing Residential vs. Commercial Loans Differences in Addy AI’s approach to residential and commercial loan underwriting.

[00:08:32] Tackling AI Hallucination and Model Training Michael discusses challenges with AI accuracy and how Addy AI trains models to avoid errors in mortgage processing.

[00:13:03] Leveraging Custom AI Models Insights into training specialized models for consistent and reliable outputs in real estate lending.

[00:14:46] Benefits for Real Estate Professionals How real estate investors and developers can use Addy AI’s free directory tool to connect with lenders and secure financing.

[00:17:33] Future of Addy AI and Expansion Plans
Michael’s thoughts on potential expansions of Addy AI’s capabilities beyond mortgage lending to serve wider real estate needs.

[00:18:24] Navigating the Lending Market Challenges Discussion on the challenges in the real estate lending landscape, particularly with rising interest rates and the role of AI.

[00:20:26] AI in Real Estate: Long-Term Vision and Impact Michael’s long-term vision for AI in the real estate industry, predicting an influx of investment and competition.

[00:22:31] Preparing for Market Shifts

How real estate developers can prepare for the anticipated market boom as interest rates stabilize.

Contact Information:

To learn more about Addy AI or connect with Michael Vandi, visit Addy AI’s website.

You can also connect with Michael directly on LinkedIn: https://www.linkedin.com/in/michael-vandi/

To connect with Eugene Gershman, please visit https://giscompanies.co/podcast/