Episode 38: Henry Stimler, Executive Managing Director at Newmark

SUMMARY:
On this episode, I had the pleasure of speaking to Henry Stimler who is an Executive Managing Director at Newmark. Henry certainly knows how to go hunting for whales. Yeah, he actually closed new marks largest agency deal, clocking in at $1.85 billion. That's the kind of loan that every originator fantasizes about. Henry came to the country from England with foreign dollars, and no industry background, but somehow was able to land those types of deals within just about 10 years from entering the industry. So how did he do it? There are a couple of themes that I think you'll hear you're one is the enthusiasm and energy with which Henry approaches the business. Energy is attractive. energy and enthusiasm you make people want to be around you. And you'll hear that come across very clearly in my conversation with him. The other component that you'll hear is the idea of really focusing on the client and what's in it for them, how can you help them grow their business, it's not about selling a product, it's about helping them achieve their future. This is really an awesome conversation. 

TIMESTAMPS:
0:00 - What separates the top performers from the rest.

1:57 - What’s your earliest sales experience?

7:46 - How to get into the world of multifamily finance.

11:14 - How he got into the real estate finance business.

16:55 - What is the best piece of advice you can give someone trying to make it?

22:10 - You can act confident even if you don’t feel courageous.

28:21 - The most important thing in the multifamily business is your ability to raise equity -.

33:21 - How to get your foot in the door -.

37:03 - What’s your approach when you’re working with an originator who doesn’t want to close a deal.

41:41 - What’s the future of fixed-rate finance?

45:29 - How do you stay in contact with clients and provide value in a non-transactional environment?

52:01 - The first thing that people lose in times of distress is their future.

lenders, market, people, loan, client, equity, selling, deals, screen protectors, year, calls, rates, business, borrower, easy, long, sales, chase, interest rates, debt

Episode Transcript

Mordecai Rosenberg (00:00):
Hey guys, welcome back to the Origination

(00:17):
podcast where I speak to topsalespeople and leaders in the
multifamily industry try tounderstand what separates the
top performers from the rest ofthe pack. On this episode, I had
the pleasure of speaking toHenry Stimler who is an
Executive Managing Director atNewmark. Henry certainly knows
how to go hunting for whales.
Yeah, he actually closed newmarks largest agency deal,

(00:38):
clocking in at $1.85 billion.
That's the kind of loan thatevery originator fantasizes
about. Henry came to the countryfrom England with foreign
dollars, and no industrybackground, but somehow was able
to land those types of dealswithin just about 10 years from

(01:01):
entering the industry. So howdid he do it? There are a couple
of themes that I think you'llhear you're one is the
enthusiasm and energy with whichHenry approaches the business.
Energy is attractive. energy andenthusiasm you make people want
to be around you. And you'llhear that come across very
clearly in my conversation withhim. The other component that

(01:24):
you'll hear is the idea ofreally focusing on the client
and what's in it for them, howcan you help them grow their
business, it's not about sellinga product, it's about helping
them achieve their future. Thisis really an awesome
conversation. And I think youmay find that enthusiasm is
contagious, even through thepodcast. So without further ado,

(01:45):
let's speak to Henry.
All right, Henry Stimler, notonly one of the largest
originators in the country, butalso the best dressed
originater. So it's a real honorto have you.

Henry Stimler (01:57):
Thank you for having me Mordecai. It's a
pleasure to be on this podcastwith you. It's lovely to meet
you in person. Obviously, I knowyour family know your dad, and
the unbelievable things he'sdone enough heard about you and
the great things you've done. Soreally, thank you for having me.

Mordecai Rosenberg (02:11):
Well, you can thank me after after the
hour, you know, if you stillwant to. Well, and we were
talking before recorded about,you know how you you came to
America and got your start, butI wanted to first ask you about
your earliest sales experience.
And maybe it was when you'restill in England and in London.
But if I said your what's kindof earliest sales experience,

(02:35):
you can remember it could befrom grade school or high school
or it could be you know, you'rein this industry, but anything
comes to mind when you thinkabout

Henry Stimler (02:46):
Yes!

Mordecai Rosenberg (02:46):
Do you remember the first thing you
remember selling?

Unknown (02:48):
So we're from the age of 15-16, there was a jewelry
salesman in gold screen, London,called Mortimore, Hance is still
a great friend and my family andmy parents, and he would work
and selling gold and jewelry.
And they would go to expos, and,and fairs. And he would take me
with to kind of bring people tothe booth. So I would stand

(03:11):
outside the booth. And my jobwas to bring people to the booth
so he could show them theirwares. And I would do that with
with quite good aplomb. And Iwould do that for a few years
for him. And he would pay me forfor kind of like being a herder
of people. And I would use charmand smiling and happiness and
laughter and try and attractpeople to come and view his his

(03:33):
his jewelry. And then I did thatalso in Israel. When I went to
yeshiva there, there was agentleman called Jeff Seidel,
who had a program that he wouldtry and engage with the youth
who are coming over frombirthright to kind of enlist
them into the Jeff Seidel JewishCenter. And so birthright would
have would take all hisbirthright kids to this fair,

(03:54):
where they would be thedifferent booths. So if they
wanted to stay in Israel theyhave different things. And I
would work for Jeff to bringpeople to his booth to kind of
get them interested in joininghis program. So from a very
young age, I kind of had thegift of the gab and little bit
of pain and liking the likeableability to bring people in and

(04:14):
kind of get them to focus onwhat I want them to focus on.

Mordecai Rosenberg (04:20):
It's so - and by the way, that's obvious
you know that you have thatlet's let's talk about the
jewelry first. Right? So when wego to the Expos in the city are
15 years old. So how do you getpeople to come to your your
booth? Like what do you meanthere's lots of other vendors
that are there. What do you howare you approaching these, these
total strangers at the age of15?

Henry Stimler (04:41):
Just walking up to them say hey guys, let me
come over here. Let me show yousomething amazing. You've got to
check this out. This is war handjewelry. It's amazing. Come with
me just just with naturalenthusiasm and just airy and
happy and bright and smiley andI think that's what I do today
as well. Just just naturalenthusiasm that kind of It
permeates and resonates withother people. And it just people

(05:03):
see it and they like it. They'reattracted to it. And they want
to be around that kind of goodnatured humor.

Mordecai Rosenberg (05:11):
So they come to that they come to the to the
booth. And now you need to takethe next step right and try to
What are you trying to do thatyou're trying to kind of close a
sale there? Or are you? How areyou? Where are you handing it
off to?,

Unknown (05:28):
in those days, I would hand them off to Morty and his
mother, and they would bring outtheir wares. And then I think,
at that point, once you've gotthem there, and then you talk
about pricing, in that business,if you're competitive on
pricing, and your product isgood, then you're okay. And I
would go back out to the frontand try and usher in more
people. And the busier the boothgot, I think the more the better

(05:48):
he did, because once you havethat natural busyness and people
are buying, and people arehandling, so it kind of inspires
more people to come to thebooth. So we just had to pack
the place. And I think that's sofunny. I've never really thought
about that. I've always been apromoter. You know, when I when
I left finance, in between 2010and 2014, I became a promoter. I

(06:11):
was a nightclub and restaurantowner. And that was also
promoting and bringing peopleand filling the place. Never
really. This is the first timeputting that together. Yes. So I
did that then, as well. Young.
And then again, in my in my late20s, early 30s.

Mordecai Rosenberg (06:28):
Wow. So you were promoting? How old? Were
you at first thing you weredoing promoting?

Unknown (06:33):
So after the crash of 2008, I was in finance in 2008.
And it took me two years to windup my business and from 2010. I
didn't want anything to do withfinance. And I went into
nightlife promoting and Ipromoted different places in New
York City. Place call Winston'sat the Gansevoort hotel, this
will Provocateur and thenultimately, my own place is a

(06:55):
place called Jezebel MadameWong's Red Egg and the Raven.

Mordecai Rosenberg (07:00):
Wow. So how did how did that go? So what is
promoting actually mean? Inpractice? Where How are you
getting people to come?

Henry Stimler (07:08):
So twofold. So when you're promoting for
somebody else, your job is justto cultivate a crowd and bring
the right crowd to the space.
That means bringing bottlebuyers, bringing beautiful
people bringing the oddcelebrity or two, when you're
promoting at your own place,it's different than promoting
for somebody else, because nowyou've got the job of just
filling the whole place. So yourown place. But when I was

(07:31):
promoting for other people, Ijust had to bring 10, 15, 20
people, which I would do, andthen when I had to promote in my
own place, I would try and fillthe place up with as many people
as possible.

Mordecai Rosenberg (07:46):
So it seems like one common theme here.
First of all, like that, thatidea of enthusiasm, right,
because I think people areattracted to they're naturally
attracted to enthusiasm, right,your energy attracts more, more
more energy. And then also kindof creating the idea of being
promoting is very interesting,because the idea is like, if we

(08:06):
get the right group of peoplethere to start, right, then
other people will want to bewith those people. So it's, you
know, at a booth, right? It's,it's kind of that old joke of
like, I never want to belong toa club that would have me as a
member, you want to get to theplace where if there's, if
there's a big crowd there,right, where you're not gonna

(08:26):
get any attention, right? That'swhere you want to, that's where
you want to go.

Henry Stimler (08:29):
Right? You want to, you want to go to a place
where you've got the fear, youmay get rejected at the door.
That's the site, the place thatyou can always get into. It's
kind of a little bit boring. Youwant to have that kind of, can I
talk my way behind the velvetropes? Can I get in where
everybody else is getting in?
Where it's a little bittoughest? That's the law. I
think of these places thesethese hard to get into places is

(08:50):
the fear and excitement. Andthen wow, I'm in. And then once
you're in everybody that's inthings, okay, if you're in you
must have something decent aboutyou. So I can talk to you
because you're part of the crowdthat got in.

Mordecai Rosenberg (09:06):
Right.
There's also another part ofthat, which is that if there is
a crowd, and you can get to thefront of the line, that feels
very good. Right? If you'rerecognized, and in the crowd,
oh, you know what, you come up,come up here. And off the field.

Henry Stimler (09:22):
Yeah, that's great. There's a huge line in
front of a place and the dot,the gatekeeper or the
doorkeeper. Is, is Bethany overand telling the bounce of open
the rope. You feel like amillion dollars.

Mordecai Rosenberg (09:34):
Yeah. So you do the club promotion for a few
years. And then at some point,you kind of get into I don't
know if you're doing real estatefinance before, but I'm curious
when we talk about this idea ofenthusiasm, and crowd. So I'm
curious how you how you makeyour entree into the industry,
right? Because you start outeveryone starts the same widget

(09:56):
which is which is with zero.
Yeah, and you probably have aphone and In a computer, maybe,
yeah, and, and you have to kindof make your own your own
future. Right? So how do youbring that? Do you apply that
enthusiasm in in your, in makingthat entree into the, into the
world of multifamily andcommercial real estate.

Henry Stimler (10:19):
So I got really lucky. So let's go back in it.
So just to kind of give thetimeline 22, come to New York,
go into asset backed securities,basically insurance build, my
own company, do that, till thecrash of 2008. 2008, the crash
comes along, wipes me out, wipesout everybody else that is in

(10:41):
heavy business that needs a tonof money. So get wiped out 2008
to 2010, to kind of wrap up thatbusiness and then decide I want
nothing to do with finance lostall this money. Basically, broke
as can be, but decide, I'vealways loved going out, I've
always loved having a good time.
Let me go into something that Ienjoy doing that doesn't have

(11:02):
any of the pressures of askingpeople for money or investing
money or anything basically,just just as far away as you can
get away from finance, do thatfor a couple of years. And my
wife, my then girlfriend, nowwife says enough of this
nonsense, You're too talented tobe out till five in the morning,
promoting and owning nightclubs,you've got to go get yourself a

(11:23):
normal job. Try my hand to workfor my father for a little bit,
didn't really enjoy what I wasdoing my dad. And my wife says
go see a guy called Anthonyalso. And he also is pretty much
a legend in the real estatefinance business. He ran Credit
Suisse, at the time he was thehead of counter commercial real
estate. Go see Anthony. Anthonysays I can't give you a job. You

(11:46):
don't have any qualifications towork in real estate finance, you
don't have a degree. You'venever interned for us. But what
I can do is I can give you a nonpaying internship, I can't give
you an email. But you can comeand hang out and see what you
can do here. And by the way,we've just bought Berkeley
point, which is our FreddieFannie business, and the

(12:06):
multifamily business is verymuch dominated by the Orthodox
Jewish community. See if you canbreak in to those guys. Tell
them that instead of going to abrokerage, like a meridian or an
Eastern union, who takes yourdeal to, to an agency lender,
come direct to us? He said no.

(12:27):
And he came up with a veryunique idea. He said, Talk to
rabbis. Talk to all the rabbisbecause rabbis have a unique
relationship with theircongregants, tell the robbers
what you're doing and tell therabbis anybody that they make an
introduction to you will giveyour, your 10% or 20% of what
you make to them. And so I lovethat idea. And I always been

(12:50):
very close with how bad rabbisand I went out to a bunch of bad
rabbis and I told them I this iswhat I'm doing. And they started
to make some introductions. AndI sat in the cantor offices and
I listened to what guys werewere saying and doing. I knew
nothing about multifamily. Iknew nothing about Freddie,

(13:11):
Fannie, I knew nothing aboutnothing. And I just listened and
learned and just threw myselfinto it. And suddenly cold
calling people and talking topeople learning on the job and
pulling people to the phone calland listen to how they spoke on
the call. And ultimately, I gotvery lucky. One of the
introductions was to a gentlemancalled Gershon Einhorn, who was

(13:34):
a big buyer of multifamily inConnecticut, and he used Eastern
union. And he didn't want tokeep paying a second party
broker fee to something that hecould go direct. And Anthony was
kind enough to come down toCrown Heights to meet with this
gentleman. And he was doing 567$8 million deals at the time.
And we just got into a groove ofdoing his Freddie Fannie

(13:56):
business for him. And the restthey say is history. And from
that one guy, I learned thebusiness and I learned on the
job and started doing agencydeals, and started to really
drive and bring in new clientsto Cantor Fitzgerald, slash
Berkeley point. And theinternship turned into a real

(14:18):
job. And I taken a leap of faithI again, have very little money
in my name, just started there,just started doing that. So
that's how the business started.
And the rest came along. Andthen and he paired me with Bill
Webber, who was very technicallysavvy and brilliant and had been
doing this for a long time andthat lent legitimacy to me. And
between the two of us, westarted to build a real real

(14:41):
business. And then a lot ofamazing things happened along
the way. Things like that youwill never believe it's like
kind of a movie. I'll give youan example. My friend soakin
right call me up said John Sloanis doing a harbor group
symposium at the Natural HistoryMuseum. Would you like to go I
didn't know who Jordan was, Ididn't know Harbor Group was
this is right in the beginning.

(15:04):
And he took me along to theharbor group presentation. And I
took one of the Harbor Groupbooks back with me. And I came
the next morning, I said, Howcome we're not doing anything
with Harbor Group? They did $3billion. And this isn't this is
in 2018 19. And then they said,Well, he's very wedded to
Meridian. So I put the book, TheHarbor Group book by the side of

(15:24):
my bed, and I said, I'm goingto, I'm going to get them to
become clients of ours. And afew weeks later was national
multi Housing Conference. Soagain, I went with no cancer
email, Henry Stemler, noaffiliate to anything, just this
kind of third party guy that wastrying to push Berkeley point.
And I see Jordan, at a partystanding by the bar at one of

(15:48):
the Jewish parties and nationalmulti housing, and I made a
beeline for him. And I said,Jordan, I've got one question
for you. You said, What's that?
I said, how you did $3 billionlast year and multifamily. How
come? We've done none of it. Andwho, who's we Berkeley point
cantor? So he looked at mesmiled. He said, because maybe
we haven't found the right guythere yet. I said, maybe you
haven't. But maybe now you have.

(16:12):
And so we exchanged numbers. Anda few minutes later, he left the
party, and he ran into Anthony.
And he said, I just met a lovelyboy that you hired. That was
very, was very compelling. Ifollowed up with Jordan, I
brought him into the office. AndI just stayed on top of it. And
then we did our first deal.
Jefferson, we did a deal inTexas and that snowballed and

(16:35):
we've done thank God billionsand billions of dollars with
with Harbor Group. So lots oflittle things happened to get
the success but I think me beingout there and, and willing to
walk up to people and pick upthe phone and cold call people
and, and do all that has led tothe success that we have today.

Mordecai Rosenberg (16:55):
Yeah, so I mean, that's an amazing story. I
think they're also I want tojust just dive into that a
little bit. Because, yeah, Iremember like when I was
starting, I mean, I didorigination for about a dozen
years before, you know, it wasthat I ran our fhe platform and
then headed up our whole debtplatform for a bit. When I when

(17:18):
I started out like to go to NMHCconference was like the most
like the scariest thing thatthat I could do. I mean, I'm a
kid, you know, in my 20s. Youhave all these, like very
senior, the top industry playersin the in the country. And it's
a room just it's just full ofpeople. Everyone seems like
everyone knows everybody. Right?
But you don't know anybody. It'sso so how do you? There's

(17:38):
probably Yeah, there could havebeen 50 people that came up to
Jordan, Justin that day, to tryto get his attention. Why does
he get like, what why if I, ifwe said to him, like, why did
you? Why'd you respond to yourto Henry, right? Like, what is

(17:59):
Henry do differently thanothers, that allows for, for
someone to want to continue aconversation?

Henry Stimler (18:09):
See, I think that's the that's the mistake
that so many people think Ithink it's the same thing that
you when you've got a beautifulgirl by the ball, right?
Everybody's intimidated to go upand talk to her. And I think
that's the same thing with a lotof these guys. People are scared
to make that approach. I spokeon Monday at an MBA thing, which
is so funny, because again, Inever finished high school, they

(18:30):
asked me to come address an MBAprogram for Georgia University.
And the last question they askedme was, what is the best piece
of advice you can give someonetrying to make it and I said,
Have courage, have the courageto go up to that person have the
courage to make that phone call,have the courage to say what you
want to say, like a lot ofpeople can do the work and do

(18:55):
and do everything, but theydon't have the courage to say,
if I do this for you, I needthis. Or if I deliver, then
you're going to do this you'vegot it takes courage to do all
of these things to even to evensay what you want to achieve
takes courage. You're scared toupset someone's just got to seem
too aggressive to out there. Butit without courage, you're never

(19:15):
gonna get what you need to do.
You have to have bravery. Youhave to have the belief in
yourself and you have to havethe courage to articulate what
you're trying to achieve. Sowith I'll give you another
example. So so when we wereselling Aragon and I think this
is a great story of courage whenwe were selling Aragon, the
Aragon portfolio was a $2billion sale that that that was

(19:36):
assigned to new markets atSpringer got the this the
assignment to sell 14,000 units.
And I wanted, I want to have agroup to win obviously. So I got
on a plane. I spent time withLarison client, the seller of
this portfolio, and I justbecame his buddy and just hung

(19:57):
out with him because I wanted myclient to win the pool. folio.
And they did when the portfoliowe got to finance it was over a
billion dollar finance deal. Itwas the largest deal that
Newmark has ever done. On themultifamily sale side. It was
amazing. One of the bridesmaidswas a gentleman called Pat
Carroll from Carroll he, he hadbeen the bridesmaid, but I

(20:18):
didn't cover Pat Carroll Icovered harbor. So my intent was
only to get it for harbor. Butafter it was awarded to harbor,
my next thing was, well, I needto get Pat Carroll as a client,
because if he has the ability tobe close to $2 million in our
portfolio, I want to convert himas a client. So I reached out to
Carol's office and I sent himmessages on LinkedIn and and I

(20:39):
was having no no success intracking this guy down, couldn't
get a response from him, calledit their system a million times
was was impossible. I saw thathe was flying to New York and
going for and I follow him onsocial media. And I saw that he
was at Cipriani, his downtown. Iwas sick in bed that day. And I

(21:01):
didn't didn't matter. I got up,got dressed, put on a suit and a
tie, walked into Tripoli,Arnie's walked up to his table,
pulled a chair pulled up a chairnext to him and said, I'm Henry
Stemler. We need to be doingbusiness together. Just like
that. And so I've been trying toreach you, this is what I do.
This is what happened on ourgone. But if you have the

(21:21):
ability to buy a $2 billionpolicy portfolio, we need to be
talking because while harbor gotthis one, there'll be other
deals. We need to start arelationship. And Pat was blown
away by the fact that someonehad the balls to get up come to
him and an ambush him at dinnersaying that it still took me a
year to convert that, thatambush to business. Right. He's

(21:42):
he had his relationships. Yeah,there's people you've dealt
with. He was very comfortablethe guys he had done business
with. But over after a year, westarted financing Pat and Carol.
And we've done a tremendousamount with them since that
since that ambush. But if youdon't have the courage to do
that, you're never going to getthat business. So I think the

(22:02):
lack of fear is very important.
Of course, I'm scared of course,I'm scared of rejection.
Everyone's scared of rejection.
But if you don't try you neverknow.

Mordecai Rosenberg (22:10):
Yeah, yeah, I That's awesome. Yeah, I am.
I'm divorced and remarried. AndI remember so when I was in that
period that I was divorced. So Iread the book. The game. Yeah.
If you ever felt like a pickupartist? Yeah, yeah. That's many

(22:33):
years ago. That

Henry Stimler (22:34):
book is like 20 years old. Yeah. Yeah,

Mordecai Rosenberg (22:35):
it's not it's not recent. So maybe it's
like, more than I shoulddisclose. Oh, my God, you know,
my, my credibility but, so but Iremember it's, you know, a lot
of it is was like, Look, you caneven if you don't feel
courageous, or even if you don'tfeel competent, you can act it.
Great act. Right. And when Iwhen I started dating him, I'm

(22:58):
remarried down my wife. You wantI was set up with her and met
her. It's like she was I mean,she was more attractive than
than I was. I mean, she was, youknow, thank God, she's, she's,
she's an attractive, young youngwoman. There so. And I remember
like, it was feeling like,alright, you know what, I'm just

(23:20):
going to act confident. Likeeven if I don't feel confident,
I'm just going to act confident.
Right? And just and it's amazinghow like, you start to when you
even if you don't, even if,because I know probably some
listeners are like, Well yeah,that's great if you if you have
the balls to like, you know, togo into Ceriani walk in but even
if you don't, you probably atsome points like you may have

(23:41):
felt nervous but you still hurtmeans I've heard a quote, which
is you know, fear is, is is likewetting your pants encourages
knowing what is knowing how toact with wet pants. Yeah, yeah,
that's true. You know, and andyou can still you can you can
act that way not in a way thatthat's that's you know, that's

(24:02):
cocky you know, or our you know,arrogant but it's but but but
just act like someone said whatwould the question I used to ask
myself right during that periodwas like, What would Clint
Eastwood do? Yeah. If I wereClint Eastwood moment and what
would you do so now I mean, youcould ask yourself what would
Henry Stimler do?

Henry Stimler (24:23):
I'm not in the same county and as him but yeah
100% And I'm gets I get scaredall the time. You know,
rejection is very real. Gettingthe phone slammed down on you is
very real getting told I'mwedded to this guy. I'm not
interested in you please stopcalling me is very real. But
you've got to put yourself outthere and and that that goes
across and especially inorigination, especially when

(24:44):
we're in a business, thatthere's nothing proprietary
about what we do. It's reallycomes down to your personality
and your ability to deliver. Youneed to have the courage to go
out there and make theintroduction make the call, go
to the meeting setup. Meetingand push for the business and
also verbalize what you want. Ithink a lot of times guys will

(25:07):
do all the work and then notverbalize that if I deliver this
i In exchange, you need tofinance with me, you need to
become my client, you know,they'll do all the entertainment
client entertainment, they'lltake them to ballgames and
dinners and wine and dine andstill never convert, because
they've never made it incrediblyclear. There is a trade off. I'm

(25:28):
doing this to get this. Werecently took 30 clients to
Austin for Formula One. And Isaid, we put a lot of people
together in a room that willautomate could end up doing
business together. And I saidvery clearly, I said, Guys, we
put this all together, we arethe middlemen here. Now, while
we put you guys together, do notgo direct to each other, because

(25:50):
that would be incrediblyuncouth. We need to remain in
between all conversations, youwant to start talking to each
other, we're fine with that. Wewant to breed a working
collaborative process here.
That's why we put you togetherfor three days. But we need to
be either paid, or we need to bein the middle of it. You don't
us in the middle of it. Pay us.

(26:11):
And don't have the hospitals saythat but I do.

Mordecai Rosenberg (26:15):
Yeah. Yeah.
How was that received? Witheveryone? Just like, Well, yeah,
that makes sense. We're we'rethere. Anyone? Was there anyone
who? No, I think I think I think

Henry Stimler (26:25):
everyone understood that they were lucky
enough to get a three day tripto to Austin. And it was I only
went for the for the race day.
But these guys put on anunbelievable three day trip.
Everything was provided hotels,tickets to the race dinners,
lunches, entertainment, theyhave an amazing 3d experience.
That is the trade off. That isthe trade off.

Mordecai Rosenberg (26:46):
Yeah. So you're clearly also like, you're
not you're not afraid of goingwhale hunting, and of going for
bid for big clients with bigdeals. Now, the flip side of
that is, you know, let's say ifI had a new, a new salesperson,
you know, who I was talking to,and giving me were asking for
advice. Right? I would say, youknow, what I might say is that

(27:08):
yes, some of those big names,like they look really alluring.
And people like to dream aboutlanding whales. But the chances
of Blackstone deciding to do adeal with you are probably like,
relatively slim. And so focus onpeople who are more likely to
sign up with with with you. Now,you seem to have been able to

(27:30):
land those huge whales. So howdo you balance like, you know,
if you're talking to if you'regiving advice to a younger
salesperson, you know, a fewyears into the, into their
careers, you're what's thebalance, like between trying to
set your sights on people whojust probably won't, you know,

(27:53):
maybe are unlikely clients, andactually just trying to go for
it, right? Because there's amean, there's a, I mean, it's
amazing, you've gone for it, andyou've you've you've landed it,
which is you know, which whichhas kind of blown up my my, my
theory of kind of, you know, thelikelihood of flows, you know,

(28:15):
concept so,

Henry Stimler (28:17):
so So I always say from small acorns, comm big
trees. So my attitude is ourwork on $50 million deals with
the same dedication or work on$100 million deals or $200
million deals, because that guytoday who's buying a $15 million
deal is going to please go oneday by 100 and $200 million

(28:40):
deal. And I've seen this, I'veseen this through our tenure,
first at Cantor now at new mark.
And we see it all the time. Soguys that start small, the most
important thing in themultifamily business is your
ability to raise equity. Right,that let's be honest, there is

(29:01):
no that's what I think there isno great scientific way of being
a multifamily owner. It's a veryfundamentally good business
people need somewhere to live,you provide them somewhere to
live. So be it a big operator,small operator, there is no
barrier of entry to grow in thisbusiness besides your ability to
raise money. So if you have theability to raise money, and you

(29:23):
have the ability to run amultifamily apartment building
with cycle, you can scale thatbusiness. So the guy that raised
$5 million, if he gives hisinvestors a return, and shows
them he knows what he's doing.
They're going to keep going backto that. Well, once you hook

(29:44):
someone on the crack, havemonthly checks, they need those
monthly checks, it becomes partof their DNA. So as long as you
return checks to your investors,they are going to keep going
back with you. So I've seen guysthat started small and have just
exploded, both Jewish, nonJewish, because they've just

(30:05):
understood that thing. So Inever discount a guy doing a $10
million deal. Because if he hasthe ability to raise money for
that $10 million deal, and he'ssmart, he knows what he's doing.
Over the next few years, pleasego out, he's gonna be able to
raise money to buy $100 milliondeal. So that's my attitude,
treat the same, have the sameaggression, the same enthusiasm

(30:31):
with all your clients, becauseyou don't know what's going to
happen with that client or wherehe's going to go. And you can
help them build a business. So Ilove helping people build their
business, I think another thingto drive great, it gets them
kind of hooked on you, becauseyou're much more than just
waiting for them to come withyou with a debt deal. I'm

(30:52):
constantly bringing deals to myclients. I'm constantly making
introductions to my clients. I'mconstantly matchmaking my
clients to help them grow theirbusiness, because as they grow
their business, I grow mybusiness. So be it, be it on the
equity side, be it on the dealside being on the debt or
relationship side being on thepartner side, I'm currently

(31:13):
trying to make those connectionswith people all the time to help
them become bigger and bigger.
So if there's a guy that juststarted out, that's buying
martinis using third partymanagement, I will say to him,
Okay, this is good for now. Butyour ultimate goal is that you
want to build out yourmanagement company. But you
can't really scale withoutowning the management, if you're
going to give management tosomebody else, it's going to be

(31:35):
hard for you to keep on raisingequity. And really, you have
very little control, you'rebasically just an acquisitions
guy. So you've got to reallybuild out a business. And once
you do that, once you've boughta few properties transferred,
given getting your ownmanagement business, and how do
you scale your managementbusiness? And how do you find
more deals. And then when you'vegone from the friends and
family, how to start approachingsome institutional equity, I

(31:57):
helped them put their bookstogether, I helped make them
look better. By building thesemarketing packages, I'll go on
best and final calls with themwill go above and beyond to help
our clients grow. And even now,for example, now people are
going to have some paid. So wedid loans for people, that
against our advice, they didn'ttake great caps, and they were

(32:18):
going to be in trouble. Because,you know, we're so first two
days they bought them were so itwas 10 reps today serve as close
to I think the last we checkedthis morning was I think it's
close to fourth, right? That'swhere so far isn't it. So these
guys need to kind of move on,they either need to put money
in, I'm going to try and helpthem find rescue capital pref
equity on top of the existingloan or, or a buyer to buy them

(32:42):
out. And I'm not gonna let themget destroyed. Because I'm not
gonna that's not what I do. If Ivultures come to me say, hey, we
want to we want to, we want tofind deals that we can crush the
guy, I'm like, you've come tothe wrong place, I'm not going
to help you crush it otherpeople, especially not my
clients, I'm going to look outfor my client, I'm going to try

(33:03):
to help him out. If he's in atough spot, I'm going to do
everything I can to help him outin any way I can. Because one,
that's the right thing to do.
And two, that's going to kind ofcement our relationship that I
didn't take advantage of him ina time of in a bad time. I
helped him get out of that badtime.

Mordecai Rosenberg (33:21):
Yeah. Yeah.
Well, I mean, that's, it'sinteresting, right? Because I
think like, the enthusiasm to meis what maybe is what gets your
foot in the door, right? That'swhat you get, you know, that's
how you get that firstconversation. But what you're
talking about, as if it'sobvious, is really I think, kind
of counter to how a lot I mean,a lot of our industry does

(33:47):
business, it's that idea of justlike, of just focusing on
building like my job is just tohelp you build your business.
Right? And if you have likerescue capital, it's like well,
yeah, that's not going to be athrowing I can be I mean, it'd
be a very profitable effort foryou. But the bottom line is like
you're here to help them growtheir business and whatever that
is, if it's if it's helping themwith introductions to equity if

(34:11):
it's finding them deals if it'shelping them build out an
investment book they put that'ssomething that is very palpable
right we can always we can feelyeah, sometimes when you're when
you're meeting with people at acharitable organizations like
you know, for like, for betteror for worse, like you have this
feeling of like, alright, like,are they actually doing really

(34:32):
want to be my friend or are theyreally just warming me up to try
to like ask me for, you know,for money, or whatever. That's
that's just how things are done.
But you can feel that you canfeel it, you know, so I think
that's like, probably if we askyour clients why they do
business with you know, withHenry right there. Enthusiasm is

(34:56):
probably one of the you mighthave been like how you got that
first conversation but theyprobably feel it because he's,
he's shoulder to shoulder withme, and growing my business.

Henry Stimler (35:06):
I'm in the trenches with you. And if if,
and we demonstrate this all thetime, if, and again, I'll give
you another example. I spokeabout this a few months ago,
this is just a great story andjust shows how you have to be in
this business. In thishumanistic business, we have a
client who's a fantastic clientof ours, who we brought, he was

(35:27):
in contract to buy a deal inDenver, 100. At the debt, the
loan was 100 $15 million. And hewas $3 million hard deposit.
This was still when the bridgelenders were competitive. We
brought a lender to him, it wasa new lender. And we told the
new lender, very important withthis client Do not mess up. This
is one of our largest clients.
Be a man of your word, stick toyour term sheet. We were meant

(35:49):
to close on Friday, Thursdaynight, I'm at the Polo lounge
with my wife and another couple.
And my partner's Bill and Aricall me and say, Hey, step out
of the restaurant, we have anissue. I walk upstairs, the Polo
Club, the pool Lounge isdownstairs and they tell me that
the lender is retreating by 45basis points, effectively

(36:10):
costing our borrower anothermillion for over the two year
period. This happens, right? Sowhat are we going to do? So
first Bill and Ari try andrestructure the loan so that the
increase only happens in yeartwo or year three, all the
different, brilliantmachinations that these genius
guys come up with. Butultimately, our client was gonna

(36:31):
have a 700 or $1,000 increase inhis interest, which he wasn't
meant to have. I call him up. Isay, hey, we have some bad news.
We've been retreated by thelender. Our fee is $740,000.
We're waiving 100% of our fee.
If you Yeah, if you're not, ifyou're going to be in paid,
we're in paid. We are anextension of your business. We

(36:55):
appreciate the business, you'reand this is a huge client to get
me on this one that most activemultifamily buyers. But I meant
and it wasn't, wasn't because Iwant to rescue the relationship.
I'm going to stand shoulder toshoulder with my client, and how
am I going to make $700,000 Ifhe's going to be hurting for a
man a million dollars, we closethe deal. We'll never send

(37:17):
another lender back to thatoriginator, we'll set we'll go
back to that shop. But thatoriginator is effectively dead
to us. Because you signed a termsheet, be a man of your word
stick to the term sheet, don'tdo it. Again. Come to me a week
before and tell me there's aproblem. Don't come to me a day
before closing an ambush me. SoI'll never send another bit of
business to that guy. That'sjust the way I am will send his

(37:39):
firm I'll never team anyway, weclose the deal. A week goes by
the client calls me and says Idon't feel right about not
sending giving you any money.
Here's $540,000. And he sent us$540,000 post closing? Because
and that's and we've done that afew times. We've done that a few

(38:01):
times where we've waived Feaselwhere the clients been
retreated. We've stood thereshoulder to shoulder with them
and said, How can we charge ourfull fee, if this guy is now
going out having to raise moreequity do this do that, that
it's just mental height. Andthat goes a massively long way
with your client because theysee it's just not it's not a

(38:21):
fee, and they're gone. And thenone more thing or we'll move on.
We'll we're working with aclient now. Well, we didn't do
the senior loan, we didn't getthe senior loan, the sealer was
done by another firm. And theywent back to the firm for an
agency quote, but they asked usto make a market to push the
agency quote. So we'll go outthere tip to everybody in there
anybody to try and help get thema better loan from the

(38:45):
competitor, even though knowingfull well that we're just cannon
fodder. But we can't say no,because we want to help the
client even though it's gallingand annoying, and we're gonna
piss off lenders, butultimately, it helps the client
we've done what we need to doand will not make any money and
this is a monster loan. We'rejust going to use other bids.
Fannie and or who knows just toget this guy a better deal on

(39:08):
his current inplace loan. Eachof the beast.

Mordecai Rosenberg (39:12):
Yeah. Yes.
So I know you said that you kindof started with Fannie and
Freddie. But it also sounds likeyou do a lot of market clearing
right and just Yeah, so Sowhat's your a lot of originators
like just do their debt product?
So what's your take on that?
What's your approach now is areyou market clearing everything

(39:34):
looking at all lenders we'restill like a focus on on Fannie
and Freddie, what's yourapproach?

Henry Stimler (39:42):
So Bill, if he was on this podcast would tell
you that that we can't that hewe kind of were very much
pioneers of the KKR BlackstoneAries Mac bridge products. We
kind of set the market becauseof the volume that we did with
these guys. Were All right, thefirst monster Harbor Group KKR

(40:03):
deal was, was was a deal that wedid. For Harbor Group with KKR.
We brought KKR. to Harbor webrought KKR, to a lot of big
clients that had traditionallyalready been agency lenders, we
brought ares to a lot of guys,we bought Blackstone to a lot of
guys, that typically had onlybeen agency lenders. So we were

(40:24):
at the forefront of thatbusiness saying that today.
Really, the only game in towntoday is pretty much Freddie
Fannie. But what we're doing,we're doing a lot of Freddie
Mac, Fannie Maxia, with pref ontop, because that's kind of
where you're gonna be. And wefind this as a shameless plug
for the guys. But we found aprep lender that has the lowest

(40:47):
hard pay, and that obviously,that's not their payment
component is not floating off,or variable, it's fixed, but he
has the lowest hard pay. Andthen we've found a prep lender
that has zero hard paycomponents, which everything
accrues to sell or refi. Soyou're not stressing the
property. So let's say youragency because of where interest
rates are as exciting to 60 65%.
We've found this unique prepthat we can put from 65 to 75%

(41:12):
that has a no hard pay componentat all that accrues all the way
till the end. On top of that wewere pioneers in bringing Korean
lenders to the US to domultifamily. I spent two weeks
in Korea, we have a Korean guypart of our team. So we
pioneered that we brought Moraywe brought KB we brought Hannah,

(41:33):
we brought a ton of Koreanlenders to the multifamily
space. So we kind of pioneeredthat business as well. So we're
constantly looking to do new andexciting things. I think right
now, I think especially withsmaller deals, we're going to
find that credit unions, whichhave this very unique five year
fixed rate finance, but a fullyopen to prepare any time. That

(41:54):
can be something reallyinteresting right now, for the
market, because everyone knows,you don't want to be floating.
But you don't also want to lockin seven year or 10 year finance
because the likelihood thatthese interest rates stay this
high for a very long time isunlikely, I don't know. But it's
unlikely that we're going to beat seven 8% interest rates.
Three, four years down the road,we all understand what the Fed

(42:18):
is trying to do. We understandthey're going to smash the
freight train, that isinflation. So this is more kind
of like a short term fix to stopinflation. How long will it
last? We don't know. But creditunions we think will be very
much an effective and efficienttool right now to finance
because you can do fixed ratefinance. But should the market
turn back in your favor? You canprepay at any time. So you're

(42:41):
not locked in you don't haveyour maintenance, you don't have
to fees. And so we hope to see agood amount of business from
from that.

Mordecai Rosenberg (42:50):
And that, right? I mean, because you're
right, Fannie and Freddie,they're in the market, and then
they're out of the market. Andif you want to be helping your
clients build their businesses,then you have to be of service
to them in either in eitherseason. Is that a? Is that? How

(43:10):
all Newmark originators are?
Does everyone view themselves askind of a clear the market
service or is that a? Do youhave people who are just like,
oh, yeah, I'm just Fannie orFreddie.

Henry Stimler (43:22):
So Newmark works in a very unique way. That kind
of led us to be who we are. Sotypically, the investment sale
teams are paired with a debtplatform. So if you're in
Florida, and you're selling realestate in Florida, you have an
embedded with you Florida debtguys, they go on all your books,

(43:43):
they attend many of your tours,and the job of that team is to
try and convert as much of thesale people's business into
debt. When we came along, we hadno territory because we'd come
through cantor. So it was weweren't legacy Berkeley point
guys. We weren't legacy Newmontguys. And so everybody had
territories, we didn't haveterritories. So we kind of have

(44:05):
to think how do we build ourbusiness? So we start to do is
we started to act as kind of afoward inventory for our
clients. We would mineeverything that the investment
sale brokers was selling. So wewould see everything they
mentioned sales guys wereselling, and then we were trying
to pair up the right deal withthe right buyer. So that kind of

(44:27):
gave us carte blanche to beacross the entire platform. So
today we do deals in Texas, wedo deals in Florida, we deal
doesn't carry in, in theCarolinas deals and Arizona
deals in Philadelphia because wedidn't have a territory. And so
we kind of went over this veryunique position where we have to
say how can we build a businesshere at Newmark so I can't speak

(44:48):
for other firms or other teamswe do a lot with other teams. We
team up with a lot of otherteams, but I think some guys are
predominantly legacy FreddieFannie guys. I think some guys
are not. But I think today To bea good originator, you really
have to have everybody, youcan't just be free and the
market changes so quickly. Soright now, Freddie and Fannie is
in vogue. Last, I would say thebeginning of the year, the debt

(45:10):
funds were crushing it, theyweren't 80% it at 230, over 270
over the Koreans were incrediblystrong. When we first started,
they were 160 over 65%. Soeverything kind of moves in,
you've got to be able to movewith where the market is and
identify the right lenders. Sothat's what we kind of do every
day.

Mordecai Rosenberg (45:29):
Yeah, it's working. You touched on this,
before that we're talking aboutrescue capital. But yeah, I
think a lot about clientretention, right, and, and how
to stay in front of clients sothat when they're refinancing or
selling that they want to theywant to give using you. But
that's it's one thing whenyou're in a highly transactional

(45:50):
environment, like we've been inthe last couple of years, but
now everything has grinded to itto a halt. It's so so how did
you what what changes now interms of, of the people you're
talking to everyday, like? Whoare you reaching out to? How are
you reaching out to them? How doyou think about you? How do you
stay in contact with clients andcontinue to provide value in a

(46:12):
non transactional environment,or were you don't have as many
transactions happening. So firstof all,

Henry Stimler (46:20):
I just want to say that I think there's going
to be, we're going to have,we're gonna get through a period
of a slowdown now. Butultimately, I think, q2, we're
gonna see an uptick intransactions. Because simply
put, the market has been toooverheated for too long, people
are buying super low cap rates,betting on rental growth, that

(46:43):
rental growth is slowing,interest rates are up. So
there's gonna be a lot of guysthat will need to move on and
need to sell especially guysthat used MF one and Arbor in
places and no disrespect. Theseare amazing lenders that at the
time didn't require interestrate caps. So guys that didn't
buy interest rate caps, they'rekind of floating in the in the

(47:04):
breeze, everything's goingagainst them, rents are slow
down. So they're going to be outof the money. So they're going
to have to transact. And thenthe big funds, who are kind of
sitting on the sidelines,they're going to come in and buy
those deals, to get those guysout. And then the lenders, if
they can't sell, the lenders aregonna have a problem, because

(47:27):
they've got these loans on thebooks, and they're gonna have to
figure out a way to sell theseand sell the notes. And so I
don't think we're at the notesale place, right yet, I think
just, we're gonna see a lot moretransactions coming, coming down
the pike. And then on top ofthat, the sellers are still
being very tough on not wantingto push cap rates to sell, they

(47:47):
still kind of want to live inthe past, when he could sell a
four and a half cap, you can'tsell a four and a half cap
today, you can't do negativeleverage, if you're borrowing Is
it high fives, low sixes, thenhow and then on top of fees on
top of everything, an iteratecap, you can't buy a four and a
half cap, it just doesn't makesense, unless you're buying all
cash, or unless you'reunderwriting or you're seeing
some huge discrepancy that youcan bring down expenses and push

(48:10):
rents or someone's doing aterrible job, you can't buy
those cap rates, sellers areultimately gonna have to sell
and come to the realization thatthose days are over, you miss
the market. In order for you tosell your property, you're gonna
have to be close to a six capand six cap deals are selling.
Blackstone, for example, isselling a six cap deal today.
And they are Blackstone whobought a lot are selling a lot

(48:32):
of their products kind of likefire sale, someone's going to
come in and buy that stuff.
That's live call at Blackstone,that's great staff and great
markets. Those guys knew whatthey're doing. They just want to
take some some stuff off thebooks, there's going to be
biased for that. But right nowwe have to kind of focus on how
we can help people either growtheir business smart,

(48:52):
strategically, or protect fromthat downside. So that means if
you're on a floating rate loanand see if we can take out your
floating rate loan and put youinto a fixed rate loan. If you
have to cash in, how can we helpyou cash in, we may be prayerful
mez or maybe bring in aninvestor. There's lots of guys
with 1031 deals right now thatcan't find places to put their
1030 ones. Maybe we can make ashift. Maybe we can make a match

(49:13):
over there. You attend toanyone. This guy's a great
property, but he needs to refifrom a floating to fix he needs
$3 million. Why don't you comein for the $3 million for your
temporary one, do it, do it do atick, and we'll save you or save
him and you'll establish andfinding a great property. So
you've just got to be thinkingon your toes and constantly
being in front of your clients.

(49:34):
I'm talking to my guys all thetime. I'm texting with them. I'm
stalking them on a Sunday. I'mgiving the guys that a little
bit down some physic like theyounger guys. They haven't seen
this. The guys in their 30sthey've not seen a downturn in
the market. They that kind ofwobbling right now. So I'm on
the phone saying you've doneokay, you've bought well, you're

(49:55):
putting good markets. You've gotgood rate caps, stay the course
now was the time to batten downthe hatches make sure you're
running lean and mean and, andretention. Keep your tenants in
your buildings. How do you dothat? You got to be a good
landlord, you got to keep yougot to create a community. This
is so important right now, whenthings are up in the air and

(50:17):
rents are coming down and youdon't go below 80% occupancy,
you've got to do a really goodjob of running your properties.
And you may not be buying at thesame pace as you were. So net is
the perfect time to buildcommunities. The greatest thing
that Joe Lubeck does of Americanlandmark is he's branded his
properties. You know, when youlive in an American landmark

(50:39):
property because they do thingsfor the kids, and they do
birthdays, and they do thelittle things and the welcome
mats and the welcome baskets.
Your tenants are going to staylonger, if they feel they have a
kinship to the building. If theyhave friends in the building. If
they don't know anybody. If theguy next door offers that
cheaper rent, they're going topack up their bags and go. So
right now the most importantthing is to batten down the
hatches and focus on what youhave and retain your client

(51:01):
every time you have to turn overa unit. You got to repaint it,
fix it up, release, it staysempty. Right now, in this kind
of turbulence, figure out a waythat your your tenant leaves,
every 10 says I'm going to saywhy are you going let's see if I
can figure something out withyou. You've got a cheaper rate
that let me bring your rentdown. You got to be smart and
strategic in this time in thisin this moment. And if you're

(51:24):
running too fast, and you have asad if you've got six
groundsman, and you can run withfull, you've got to do some some
hard things, you got to makesome hard decisions. If you've
got all your buddies working foryou. And two of them are pulling
the weight. You gotta say, I'mreally sorry, it's time for you
to move on. The good times arebehind us. Now we're in for the
rough ride, be it a year, twoyears, who knows? Now you got to
be incredibly strategic. So I'mthere. My partners are there.

(51:47):
We're sounding boards. We'regiving advice. We're there to
help. What can we do to help?
And we're just in front of theseguys all the time, be it whether
they're buying a lot, we arethere for them?

Mordecai Rosenberg (52:01):
Yeah, yeah, I recently heard the quote that
in times of distress, the firstthing that people that people
lose is their future. Yeah, and,you know, our job, right as as
salespeople is to is to restorethe future for for our clients,

(52:21):
right. And it feels like, youknow, in the doom and gloom,
it's like, you want to just getpeople just want to stay in bed,
you know, and you know what, youknow, why bother, but the bottom
line is like, there are, yougotta keep moving, right? And
there's going to, and there areopportunities. The other thing
is that entrepreneurs, they wantto be in motion and focused on
something, right. And if youcan't be key, you can't be out
there buying properties now,focus on maintaining or keeping

(52:45):
your tenants. Right, that's whatwe're going to focus on is in
our goal is to have you know,90% tenant retention. And yeah,
I think just having that tofocus on I think if it's a
great, great concept.

Henry Stimler (52:57):
Yeah, that's right. That's right. I told one
of the younger guys, on Sunday,he called me very depressed,
very upset. Do you know, hewon't give the same returns to
his clients? I said, don't worryabout that. Right now. This is
what you need to do. You need tofocus on building out a brand
building out a managementcompany, keeping your your

(53:17):
tenants happy, get down to thestuff that you couldn't focus on
because you're too busy on abuying spree and raising money.
You're not gonna raise money,you're not gonna buy anything
right now. You have a littlewindow to really get your, your
business together.

Mordecai Rosenberg (53:31):
I love it.
Well, Henry, this has been yourenergy and enthusiasm is
contagious. So I really, youknow, I feel more energized and
enthusiastic, you know, after atthe end of the hour, so thank
you so much for your for yourtime. You're doing great stuff.
You're making magic happen. Sokeep keep it up.

Henry Stimler (53:49):
I just want to say thank you so much. I look
forward to seeing you andspeaking with you more.

Mordecai Rosenberg (53:54):
Sounds good.
All right. Take care, Henry.

Henry Stimler (53:56):
Bye. Thank you.