The Secrets to Securing Loans and Managing Risk

Navigating today’s real estate financing landscape is tougher than ever, with rising interest rates and tighter lending environments. Jake Clopton, founder of Clopton Capital, explains how to overcome these challenges by leveraging strategic capital sources, understanding the trade-offs between equity and debt, and effectively presenting loan packages to lenders. From creative uses of debt funds to risks in pre-development financing, Jake shares practical advice and insider tips to help developers and investors secure funding and manage risk in a volatile market.

Guest Bio

Jake Clopton is the founder and president of Clopton Capital, a leading commercial real estate financing firm specializing in debt origination, equity placement, and structured capital solutions. With over 16 years of experience, Jake has facilitated transactions across multifamily, retail, industrial, hospitality, self-storage, and other asset classes. Known for his expertise in creative financing strategies and his deep network of capital sources, Jake helps clients navigate complex financing challenges and achieve their investment goals.

Episode Highlights and Chapters

[00:01:00] Jake’s Background and Expertise

Jake shares how he founded Clopton Capital and the broad scope of his work, from fixed-rate loans to innovative financing solutions for specialty projects.

[00:03:00] Deciding Between Debt and Equity

A breakdown of how ownership structures influence the choice between equity and debt, with considerations for risk, cost, and recourse.

[00:05:25] What Are Debt Funds?

Jake explains how debt funds fill the gap left by banks, offering flexible, entrepreneurial lending options while carrying higher costs.

[00:07:47] Pre-Development Financing Risks

The pros and cons of leveraging debt for pre-development costs, and why timing and planning are critical to avoid costly delays.

[00:10:31] Securing Construction Loans

Jake reveals how the lending environment has shifted, requiring more equity and extensive outreach to secure competitive construction financing.

[00:13:00] Alternative Financing Tools: A Practical View

An honest look at the pros and limitations of PACE loans, including where they can add value and why they’re not always the best solution.

[00:15:08] Packaging a Deal for Success

Key advice for presenting loan requests: organization, transparency, and understanding the underwriter’s perspective.

[00:21:00] Market Momentum After the Election

Jake discusses the significant uptick in investor activity and deal flow, driven by renewed confidence in the market.

Contact Information

To connect with Jake Clopton, visit:

• Website: cloptoncapital.com

• LinkedIn: Jake Clopton on LinkedIn

For more episodes and resources, visit the host, Eugene Gershman, at giscompanies.co/podcast.