Sharestates CEO, Allen Shayanfekr, was featured on an installment of the National Mortgage Professional’s Mortgage Leadership Outlook series. Allen joined the series’ host, Andrew Berman, as they explored how Sharestates has been coping during the COVID-19 pandemic, what trends he is seeing in the industry, and much more. For the complete interview, click here. For your convenience, we’ve broken the video down by the topics of discussion below.
How did Sharestates get started?
Allen discusses how the concept for Sharestates came about.
The Evolution of Real Estate Crowdfunding According to Sharestates
How have real estate crowdfunding and mortgage lending evolved over time?
What are the Different Real Estate Investor Types?
Allen discusses the varying mortgage investor types on the Sharestates platform.
Sharestates Ability to Lend during COVID Pandemic
Allen discusses how the company responded to the COVID Pandemic in terms of lending.
Sharestates Investor Terms for Institutions and Individuals
How are investment terms structured for individual and institutional investors buying into the same loan?
How Have Sharestates Loan Values Changed During the COVID-19 Pandemic?
How have Sharestates mortgage values been impacted by the pandemic?
How was the Sharestates Transition From Office to Remote Work?
How was Sharestates able to quickly move 100% of its staff to a remote work schedule?
Where Can Real Estate Developers Find Opportunities During the Pandemic?
What opportunity areas still exist for mortgage borrowers looking for their next project?
What Types of Assets Does Sharestates Fund?
What asset types does Sharestates lend mortgages on?
How will Market Conditions and Federal and State Responses Impact The Real Estate Market?
How will the current market and the latest responses from government officials impact the mortgage lending industry?
What Does The Future Look Like for Sharestates?
What does Allen think the future of the company looks like?
How Do Real Estate Brokers fit Into the Sharestates Model?
How do mortgage brokers fit into Sharestates’ business model? What products were designed specifically for them?
What was the First Group of Investors to Return to Sharestates to Invest?
Which investor type returned to the Sharestates platform first? Individual or Institutional?
When Will Sharestates Return to the Office Setting?
When does Allen anticipate a return to the office?
The COVID-19 Pandemic took us all by surprise. No one could have planned for it and it has brought many industries to a massive halt in business. How has the Pandemic impacted the private lending space? What will private lending look like in the months and years to come? Sharestates CEO and Co-founder Allen Shayanfekr joined other private lenders during a panel discussion hosted by American Association of Private Lenders to discuss the state of the industry.
What are Sharestates new Lending Parameters? How has Underwriting Changed for the Private Lending Company?
Allen discusses how the capital market and underwriting teams have responded to COVID-19’s impact on the private lending market.
How is Sharestates Handling the Process of Forbearance Requests? Has the Company Seen a Spike?
Allen discusses the rate of forbearance requests that Sharestates has seen following COVID-19.
When Does Sharestates Anticipate Being Able To Significantly Lend Again?
Allen discusses how the business is still lending but will begin the process of lending to a larger audience in the coming months.
What Significant Challenges Has COVID-19 Presented to Sharestates?
Allen discusses how profitability of the business still remains its core focus and how COVID-19 has impacted the process, if at all.
During the COVID-19 pandemic, there are been many speculations about how the private lending industry will fair and what recovery timelines will actually look like. Recently Sharestates CEO, Allen Shayanfekr, and Director of Business Development, Michael Ramin, hosted a webinar with the National Real Estate Investor. The topic for discussion was Navigating the New Reality Real Estate Recovery Planning in an age of Uncertainty. Below we’ll explore each of the questions posed to the Sharestates team as well as link directly to the video clip for each answer.
What was the real estate borrowing climate like before March 13, 2020, when the president declared a national state of emergency, and how has it changed since then?
Michael Ramin discusses how private lending rates and construction trends have changed following stay-at-home orders.
What did the debt capital picture look like before the declaration of emergency, and what has changed since mid-March?
Allen Shayanfekr discusses how the debt capital space has changed since the earlier days of private lending to just before the Declaration of Emergency. He also explains what the landscape looks like now.
Are there any areas of borrowing and lending that are picking up as a result of the coronavirus crisis, and, if so, what are they?
Michael Ramin discusses how developers are still active looking into non-performing loans, REOs, and other foreclosures since the Declaration of Emergency.
Do you see institutional investors shifting their attention to any particular areas of interest as a result of the crisis, or are they being tightfisted? What about retail investors?
Allen discusses how institutions are now facing margin call issues following the COVID-19. He also shares the importance of diversifying your capital sources between individuals and institutions.
What are going to be the short-term and long-term effects on real estate borrowing and lending, and what can platforms that facilitate these transactions do to encourage more activity?
Michael discusses his view of the market going forward. Specifically, lenders putting an even larger emphasis on borrower track records.
What about on the institutional side? How will the access to and the cost of capital be affected over the next year, and is there anything investing platforms can do to encourage the infusion of new capital coming out of this crisis?
Allen projects a continued slow down in investing for at least 6 to 9 months. Key indicators that capital markets are beginning to open up again will be the first investments made. Many investors do not want to be the first to begin business as usual.
In some areas of the country, state governments have ordered operations to cease in certain sectors of the economy, particularly non-life sustaining businesses. Real estate development is one of them. How has that impacted the deal sponsorship side of the house?
Michael discusses the impact of a pause of work order for non-essential real estate developments. He highlights the importance technology plays in states still allowing construction through options such as E-closings.
What’s that look like from the capital side of the house. Are investors still looking for deals and can’t find them, or have they noticed a slowdown? How do they feel about it?
Allen sheds light on how investors are still looking for discounted legacy pre-COVID products as well as new, valuated and tested products established for the post-COVID world.
How are real estate terms, risk assessment, and underwriting practices changing in the face of the crisis?
Michael sheds light on how lenders have readjusted their lending parameters following the COVID-19 pandemic. This includes even more stringent underwriting policies.
What kind of terms are investors seeking now? Have they adjusted their expectations?
Allen shares investor appetite prior to COVID-19 and how that appetite has changed since the pandemic.
Give me your best and worst-case scenarios for the economy and then for private lending in real estate.
Allen shares his outlook for the economy and private lending spaces.
The New York Real Estate Journal has identified Sharestates CEO Allen Shayanfekr as a 2020 One to Watch. The recognition comes after Allen, along with the executive leadership at Sharestates, succesfully navigated the company to originate over $2 billion in real estate loans in just 5 years. The platform has grown to become one of the largest private lenders in the nation. Click the button below to read the entire 2020 Ones to Watch spotlight interview with Allen Shayanfekr.
The team at GlobeSt interviewed Sharestates CEO/Co-founder Allen Shayanfekr regarding the outlook of the construction lending market.
“So the outlook is good. If there is a worry, he says, it’s the number of lenders jumping on the construction-loan bandwagon. “There’s a ton of lenders chasing borrowers, which is causing some rate compression,” he says. “It’s great for the borrower but makes it a little more difficult to operate as a lender.”
The result could be a thinning herd. “Some of that downward pressure and thinner margins will result in some lenders starting to exit the construction lending space, probably toward the end of this year or early next year,” he predicts.”[/vc_column_text][/vc_column][/vc_row]
The Bisnow team interviewed Sharestates CEO and co-founder, Allen Shayanfekr to understand how private lenders, such as Sharestates, can solve the housing crisis.
“What’s exacerbating the housing crisis is the persistent environment of ultra-tight lending standards put in place by commercial banks after the recession,” said Allen Shayanfekr, CEO of real estate crowdfunding platform Sharestates. Sharestates has been finacing real estate loans since 2015 and 32% of those loans are for multi-family properties. To read the entire article, click the button below.
Sharestates SVP of Marketing, Justin Peterson was interviewed by the MPA team in regards to the state of the single-family home market and how multifamily housing could be the solution. “For many people who thought their first home would be a house with a white picket fence, a multi-family’s a good option just because it’s much more affordable. If you’re in the port cities on the coast, affordability is a big issue. It absolutely offers an option for homeownership that doesn’t exist in some of the high cost, high tax areas,” said Justin Peterson, SVP of marketing at Sharestates.
To read the entire multifamily housing article, click the button below.
The Mortgage Professional of America magazine wrote a response piece to one of Sharestates’ blog posts regarding investment trends for the remainder of 2019. Among the key trends are finding the right real estate crowdfunding platform diversification, the important role of high net-worth investors, and competition among hard money lenders.
To read the original article, 3 Real Estate Investing Trends to Watch This Year, click here.
To read the entire MPA aricle, click the button below.
Sharestates’ CEO Allen Shayanfekr was interviewed by BISNOW and discussed how alternative lenders, like Sharestates, are taking advantage of opportunity zones.
Why is Everyone Talking About Them?
Since the phrase “opportunity zones” hit headlines last year, real estate investors have been eager to see how they can invest in these distressed locations. Allen states “Bridge lenders got all excited about opportunity zones when the news broke last year, but we’ve been lending in these areas since we were founded in 2015,”. Opportunity zones became a conversation focus in 2018 after Congress passed the Tax Cuts and JOBS Act. OZs are intended to encourage longer termed investments in poorer areas causing community revitalization and economic reinvigoration.
Throughout this interview, Allen mentions that “Sharestates has a history of helping developers inject new life into properties and communities that have gone overlooked,” which is at the core of the concept of OZs. To read the entire interview and learn more about how Sharestates provides investors with unique access to these loans, click the button below.
Sharestates CEO, Allen Shayanfekr, sat down with the Mortgage News Network to discuss the success of Sharestates and its recent award for the Top Real Estate Platform from the LendIt Fintech Awards. In this interview, Allen discusses a few topics that helped him and the Sharestates team to grow and scale the business from startup to Top Real Estate Platform.
Tip #1: Fire Yourself Every day
As quoted in the New York Business Journal, Shayanfekr states that he has to fire himself every day. This does not mean that he quits every day, but rather uses that as short-hand for effectively delegating tasks. In the early days of startup life, most CEOs will find themselves occupied with an array of tasks that cover every area of the company. As the company grows, it’s important to be able to hand off tasks to the capable staff so that you are free to then work on the next big thing that will take your company to the next level.
Tip #2: The Importance of Relationship Building
The second tip to success as discussed with Shayanfekr is the value of relationships. From industry to industry the key to growth changes. Within mortgage originations, the key to unmatched growth is strategic relationships; they are a valuable currency. Sharestates has always placed a focus on relationship and partnership management. This focus manifests in several ways, from creating loan programs to cater to the changing needs of clients, to building out specific broker programs, and even simple dinners to check in. The rate of return from a single strategic partnership can create endless opportunity for a business.
Tip #3 Understanding Your Process and Integrating Tech
Allen also discusses the importance of knowing your client’s journey from beginning to end. This knowledge allows you to then identify pain points and work to fix those problems. Your willingness and ability to do this will ultimately make your platform easier to use and the go-to within your industry. Within the world of originations, time is money. The longer the loan process takes, the more it could end up costing the client in the long run. Sharestates has intelligently used technology to help streamline the once antiquated real estate lending process which ultimately led to the company becoming one of the largest private lenders in the nation.
There are many ways to become a successful entrepreneur and to disrupt an industry. For Sharestates, effective delegation, relationship management, and process optimization are just some of the ways that the business has grown to where it is today. Watch the entire video here to learn more.