The FORT Podcast: Brian Good – CEO of iBorrow – How The Lending Market is Changing
In today’s episode, we are joined by Brian Good, the co-founder and CEO of iBorrow. iBorrow is a nationwide real estate lender made by entrepreneurs for entrepreneurs, with an impressive track record of over $1 billion.
Brian also founded TenantDirect, the first web-based property management software. Brian has moderated and served on a number of panels during his career, including panels for UCLA, YPO, Bisnow, and IMN. Currently, he sits on the Board of Advisors for the Ziman Center for Real Estate as part of the Anderson School of Business at UCLA.
In this episode, we’ll be covering everything from Brian’s backstory and why he moved from equity real estate to debt real estate to how iBorrow underwrites borrowers and how the private lending market has changed going into 2023.
What brought Brian to debt real estate? (01:39)
Why did he want to make the switch? (05:46)
The difference between iBorrow and other lenders (08:23)
What Are Bad-Boy Carve Outs? (10:12)
How has the market changed over the last year? (13:14)
How should we plan out the year ahead? (29:12)
How leasing activity is looking now (43:07)
Episode wrap-up (55:36)
In a recent episode of Chris Powers’ renowned business podcast, Brian Good, an eminent figure in the real estate finance domain, shared invaluable insights into the evolving world of real estate. With a background that transitioned from law to the intricate corridors of real estate financing, Brian has carved a niche for himself, gaining expertise that many in the industry seek.
The episode commenced with a dive into Brian’s professional journey, emphasizing his unique transition to the so-called ‘dark side’ of real estate – the debt sector. Brian elucidated the complexities of private lending, distinguishing it from traditional chartered banks and institutions. His emphasis on the discretionary capital that private lenders operate with unveiled the heightened flexibility they offer. Unlike banks or life insurance companies bound by strict regulations, private lenders navigate with a malleability that allows them to address unique scenarios, be it tenant litigations or environmental challenges.
An integral part of the discussion revolved around the financial intricacies of real estate. Brian shed light on the metrics and standards pivotal in lending, with a particular focus on loan-to-value ratios. These ratios, as Brian detailed, play a significant role in the decision-making process, influencing both lenders and borrowers. Their implications span from determining the worth of a property to understanding market fluctuations. The importance of appraisers in this intricate process, ensuring accurate property valuations, was also highlighted.
Investment strategies in real estate took a prominent spot in the conversation. With anecdotes from his expansive experience, Brian provided an overview of effective strategies. He underscored the significance of due diligence, understanding market dynamics, and the imperative nature of adaptability in an ever-changing environment. Investors, as per Brian, must be adept at navigating potential pitfalls, challenges, and ensuring they’re equipped with strategies that resonate with current market conditions.
Risk management’s role in real estate was another focal point. The mechanisms, strategies, and methodologies employed to assess and counteract risks associated with real estate transactions were meticulously discussed. With the real estate sector’s ever-evolving landscape, particularly with technological advancements and market shifts, Brian emphasized the continuous refinement and updating of risk management strategies.
The influence of economic indicators on the real estate market was another enlightening segment. Macro-economic factors, ranging from fluctuating interest rates to global events, have a profound impact on the real estate landscape. Brian’s perspectives on the global economies’ interconnectedness and its ramifications on real estate trends offered listeners a holistic view of the industry’s larger picture.
In concluding the episode, the duo speculated on the future trajectory of the real estate sector, touching upon technology’s role, changing consumer preferences, and potential regulatory shifts. Adaptability, foresight, and an unwavering commitment to understanding the nuances of the industry were emphasized as the cornerstones for success in the real estate domain.
In essence, Brian Good’s appearance on Chris Powers’ podcast provided listeners with a comprehensive deep dive into the multifaceted world of real estate. From investment strategies to risk management, and from economic indicators to future predictions, the episode was a treasure trove of knowledge. For anyone vested in understanding the ever-evolving dynamics of real estate, this podcast episode stands as a testament to the industry’s complexities and opportunities.
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