High Leverage Balance Sheet Lending, Maxwell Wu @ Fulcrum Lending

Real Angle: Building Success in Commercial Real Estate

In this conversation, Joshua Kahr speaks with Maxwell Wu, CEO of Fulcrum Lending, about their lending business in the multifamily space. They discuss Fulcrum's high-leverage lending approach, their transition from being a correspondent for Freddie and Fannie to a balance sheet lender, and the importance of technology in their operations. They also touch on the current market dynamics, the future of gap financing, and Fulcrum's growth plans.

Keywords

multifamily lending, high leverage lending, balance sheet lender, technology, market dynamics, gap financing, growth plans

Takeaways

Fulcrum Lending is a high leverage lender in the multifamily space, offering loans with a 1.0 debt service coverage ratio (DSCR) and up to 75% loan-to-value (LTV) ratios.

They started as a correspondent for Freddie and Fannie but transitioned to a balance sheet lender due to rate increases and the need for gap financing.

Fulcrum uses their proprietary technology platform to quickly evaluate deals and make data-driven lending decisions.

The current market conditions, including the increase in money supply, suggest that the window for gap financing will continue for another 18 months to two years.

Fulcrum's future plans include expanding their footprint on the West Coast and Southeast, offering their own loan products, and focusing on being the best in the multifamily space.

Chapters

00:00 Introduction and Background

03:00 The Role of Technology in Lending

07:06 Lending Terms and Leverage Levels

09:05 Efficiency and Speed in the Lending Process

11:13 The Importance of In-Person Meetings

22:45 The Window for Gap Financing

26:25 The Impact of Money Supply on the Market

30:06 Fulcrum's Vision for Growth