Sharestates’ Director of Business Development, Michael Ramin, was recently interviewed on the Handsome Home Buyer Podcast. Michael discussed his inspiration for pursuing a real estate career as well as how the company is managing since the COVID-19 Pandemic.
Watch the full interview below.
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.
Whatever occurs post-COVID-19, it’s clear that commercial real estate will see major changes in the aftermath. Sectors will come out newly strengthened, while social distancing may change the way that real estate deals are transacted. Some of these changes have been fast-tracked because of the pandemic and should be here to stay, says Allen Shayanfekr, CEO and co-founder of the lending platform Sharestates. That is if short memories don’t mean a full reversion to the pre-pandemic status quo.
GlobeSt.com spoke with Shayanfekr to get his view on what’s in store for real estate lending and technology.
HousingWire sat down with Sharestates CEO Allen Shayanfekr to discuss real estate crowdfunding and how low-interest rates and low housing inventory are affecting investors.
Allen Shayanfekr says, It still hasn’t been very long since the coronavirus scare began causing some turbulence; it’s been a few weeks that we’ve been seeing this craziness in the public markets. I think what people are realizing is that fixed-income investments are safer and less volatile than what they’re experiencing today in the public markets.
“As one of the visionaries leading the frontier of the Crowdfunding movement, our capital markets team has been working around the clock with local and global peers in an effort to blueprint a forward-moving plan. While we do not know where or when the dust will settle, we do have confidence in the market, as documented in historic trends of activity post-crisis. That history is the DNA of what we have structured for this plan. With our ‘Lifeline Solution’ we hope to bring much-needed liquidity to those lenders and aggregators who are currently experiencing a liquidity crunch.” – Allen Shayanfekr, CEO.
The Real Deal interviewed Sharestates CEO, Allen Shayanfekr about how technology is changing real estate. Here is some of what he had to say “As our business grew, so did our need to develop automated and integrated technology,” Shayanfekr said. “We had to think about how to manage the borrowers, real estate speculators and developers we work with. How do those leads come into our system? How do we process them? How do we manage the underwriting process, the closing process and ultimately selling the loans, plus everything else that goes on?”
What Sharestates eventually built was a robust end-to-end process that covers both the investor side of the business, as well as the origination, or the borrower side of the business with “all the bells and whistles.” Shayanfekr said that during that process he discovered that what they had designed was unique to the industry – something that could eventually usurp the old fashioned process of applying for and receiving a mortgage.
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 The Real Deal interviewed Sharestates CEO/Co-founder Allen Shayanfekr about how Sharestates works. He shares why Sharestates has been so successful as a crowdfunding platform since it was founded in 2015.
Since then, Sharestates has handled $2.3 billion in loan volume, mostly in prime East Coast fix-and-flip markets like Brooklyn.
“Brooklyn is where Manhattan was, from a pricing standpoint, 20 years ago,” said Sharestates CEO Allen Shayanfekr. “It doesn’t matter where you buy in Brooklyn today, within the next decade or two you’ll be sitting on a gold mine.”
But now — with thousands of customers, over 2,500 closed loans and a wealth of experience — Sharestates is pushing the real estate crowdfunding business into fresh markets and creating opportunities for those who have struggled to find funding. They are now lending in 43 states and growing.
“We’re letting investors go direct to the borrowers,” said Shayanfekr. “And they can actually individually pick and choose which borrowers and which properties they want to lend to. And the investor will actually hold the paper to that loan directly. So they have more transparency and they have the benefit of a higher interest rate.”
Shayanfekr added that instead of making 1 percent or 1.5 percent in a CD, Sharestates is able to offer returns of 10 to 12 percent on an investment. That’s proved to be an appealing pitch to investors nationwide, allowing the company to swiftly expand from East to West Coast — and even to Hawaii.