Real estate lawyer talks enforcement, institutional money – and what’s next

[00:00] We’re meeting a lot of people who are saying, you know, the service we used to get we’re not getting anymore. The returns were just absurd for the risk levels. My general thoughts are we’re close to the bottom. I think tough times make for better actions. Not every lender is doing every deal anymore.

[00:27] Fergal McAlinden: So, we are joined now by Daniele Grechi who is a partner and founder at Grechi Carter.

[00:34] Grechi Carter. Great to talk to you today. You’re in an interesting space to look at how things are going in the mortgage sector and the mortgage industry as a whole. Tell us a little bit about some of the work that you’re doing in the mortgage sector at the moment.

[00:46] Daniele Grechi: So, we’re still quite busy with the private lending side of things. For us, the really interesting thing has been how the enforcement side of things is growing. There’s obviously, with the way the market’s been, a real need for that.

[01:00] I think our firm is in a very unique position because we’ve got a high level of expertise in that space. We’ve got a full team dedicated, four lawyers, three clerks. So, we can handle a high volume of work and still provide the level of service that our clients would expect.

[01:19] I know that the industry is generally kind of struggling, for lack of a better word. A lot of the big firms in this space have so much volume that we’re meeting a lot of people who are saying, you know, the service we used to get we’re not getting anymore. That’s kind of provided a ton of opportunity for us to spread our wings and grow in this space, and we have.

[01:34] Fergal McAlinden: You mentioned you work in the private lending space. That’s obviously seen a big evolution over the past few years. You mentioned that you were last year kind of pre-COVID. What have been some of the big changes that you’ve seen over the years in terms of how you’re working with private and alternative lenders?

[01:46] Daniele Grechi: Well, it’s really interesting because we’ve been in this space for almost 15 years now, and in the first six or seven years, it was such a different space. It was a lot of syndicate lending, a lot less structure, a lot of random different groups, small lenders, and the returns were just absurd for the risk levels that were available.

[02:05] Every year markets were going up 20%. It’s sort of an easier space to operate in and because of that a ton of capital flooded to it. Since the COVID era, I think what we’ve seen is the flock of institutional money through the mix and they very much have professionalized the space.

[02:22] I think what we now refer to as private is kind of institutional, very regulated, very professional, extremely competitive. I think that’s sort of the biggest change I’ve seen since we started in the business.

[02:38] Fergal McAlinden: Looking even to the next year or so, or the next few years, any kind of trends that you foresee? Do you see the space continuing to grow? Are there challenges ahead? What’s in store?

[02:47] Daniele Grechi: I definitely think the space is going to grow. I think right now a lot of firms are probably going through some pain because of the change in the market, but a lot of people have adapted.

[02:58] My general thoughts are we’re close to the bottom. So, hopefully things are going to move up from here. It’s really forced people to have tighter processes. I think tough times make for better actions and people have had to tighten their processes, really look at their underwriting.

[03:14] And I think moving forward I see a more stable space. Opportunities are always going to be there. It’s such a big market. I’m just really hoping to see the rebound in the real estate market and that everybody can get busier again.

[03:28] Fergal McAlinden: I think we’re all looking ahead to that. Is there anything, Daniele, that you’re speaking mostly with brokers about today or any kind of big conversations that you’re hoping to have with them?

[03:36] Daniele Grechi: I mean it’s always the same types of conversations. They’re looking for speed, turnaround, can you handle complicated things? Is there anything different right now than we’ve seen in the past? No, I don’t think there’s anything different.

[03:48] Like I said, I think it’s that theme of the people who are still working are working hard. It’s tougher times, so it’s forced people to become better at what they do. And that’s kind of the theme right now in the real estate market.

[04:00] Fergal McAlinden: How about the event today? What’s your general impressions of how it’s gone?

[04:03] Daniele Grechi: A lot of energy. I’ve noticed a lot of people who are really, really hungry to meet as many people and learn as much as they can.

[04:12] I think it’s probably tied into that, you know, not every lender is doing every deal anymore. So, you’ve got to go to different lenders for different needs. You’ve got to know your sweet spots for whatever it is that your clients need.

[04:23] So, I do really get the sense that people are here to meet different people, learn about what they do, and see how they can help them with their practice.

[04:30] Fergal McAlinden: Face-to-face conversations, it can’t be overstated how important they are.

[04:34] Daniele Grechi: 100%.

[04:35] Fergal McAlinden: All right. Well, good luck with the rest of the event. Great to see you today, Daniele, and we’ll talk to you soon.

[04:39] Daniele Grechi: Thanks. Great to meet you.