39: Kyle O’Hehir - The Distressed Real Estate Credit Market

In this episode, we're joined by Kyle O’Hehir, Co-Founder and CTO of Constitution Lending, to talk about the distressed real estate credit market.

We cover:

• Introduction to Assessment Matters podcast 00:00

• Kyle’s background in finance and real estate 00:40

• From commodities trading at a hedge fund to real estate assets

• The distressed real estate credit market 3:13

• Buying out debt from other lenders

• Pursuing debt repayment to secure the real estate collateral

• The post-COVID commercial real estate market 10:00

• Increased opportunity in the distressed debt market

• Influence from debt capital markets

• Macro-level concerns: the impending debt “maturity wall” 13:52

• Pre- vs post-COVID: the rise of non-bank lenders

• Bank lenders have flexibility that non-bank lenders do not

• How does this influence behavior around upcoming maturities?

• Good vs bad distressed debt deals 20:53

• Preliminary screens: quality of underwriting and default rate

• Subsequent modeling

• Evaluating real estate value as part of due diligence 24:44

• Kyle’s most memorable deal 27:44

• How to reach Kyle 35:28

• @financeguy725 on Twitter

• Other podcast appearances