Rescue Strategies for Multifamily Investors | Solving Debt & Capital Stack Problems w/ Adam Finkel

Adam Finkel (00:00)

What many folks are finding today is that although they were very successful in effectuating their business plan, you know, they put in the work, they boosted

the cash flow, they’ve got increased ⁓ NOI, now it’s time to either refinance or sell. And really, I guess, on the refinance side, for people who are looking to hold ⁓ on, what they’re finding is that they can be upside down on their loan,

Scott Bursey (02:04)

welcome to the Real Estate Pros podcast. I’m your host, Scott Bursey. And today I’m joined by someone I’ve really been looking forward to chatting with, Adam Finkel, who’s been making serious moves in the commercial real estate space. Adam is one of the leading commercial real estate finance advisors in the Southwest, helping clients source and structure financing for properties across the capital stack and across major asset classes. As senior managing director at Marcus and Millichap Capital Corp. He brings more than two decades of experience and over $4 billion in originated debt and equity transactions. In addition to advising clients nationwide, Adam is a published thought leader whose commentary has appeared in let’s including Connect CRE, Scotsman Guide, Globe Street, and Phoenix Business Journal. Please welcome the man that fuels the market.

Adam Finkel. Welcome to the show, Adam.

Adam Finkel (03:06)

Thanks Scott, pleasure to be here. I’ve been looking forward to it.

Scott Bursey (03:10)

I think our audience is really going to take something away from your ability to translate the language of money into clear actionable strategy. Let’s dive in, shall we?

Adam Finkel (03:24)

Sounds good.

Scott Bursey (03:25)

So first off, for people who may not be familiar with your story, your world, what’s been going on here recently in your world?

Adam Finkel (03:36)

Sure, well, ⁓ you know, I joined Marcus and Millichap as a senior managing director for their Phoenix office.

Recently, I was actually joined here ⁓ last August. And prior to that, I had my own boutique commercial mortgage banking company based in Phoenix called Tower Capital. ⁓ I had that business for about 10 years. Did, you know, just in that platform, you know, over three and a half billion in deals, ⁓ you know, financing, you know, properties across, you know, multiple asset classes, including multifamily, single family build for rent,

hospitality, retail, industrial, office and mixed use. ⁓ And then, you know, decided to join, you know, Marcus and Millichap here in Phoenix, which is an incredibly prolific office. You know, Marcus and Millichap provides me with, you know, a lot of different resources, you know, being a large public company, you know, having that depth of knowledge and relationships while also, you know, having a very entrepreneurial mindset where I can kind

have come in and continue to run my business and grow my team and do my thing as I’ve always been doing it. Except now I have more resources at my disposal and also I’m able to collaborate with a really active network of ⁓ investment sales professionals both here in Arizona and really throughout the country. So it’s been incredibly exciting and I’ve really enjoyed my time here so far.

Scott Bursey (05:14)

And what markets are you operating in?

Adam Finkel (06:07)

Sure, so you know being here in Phoenix, you know, my bread and butter is, know, Phoenix MSA, Arizona, and then sort of going radially outward. So I do a good amount of business in California, you know, throughout the, you know, mountain west states, you know, Colorado, Utah, ⁓ you know, also have ⁓ done quite a bit of business and continuing to do so in Texas, throughout the Texas markets, Austin, Dallas.

⁓ you know, the Sun Belt. So really, I go where my clients take me ⁓ and you know, active really, you know, both here and in other parts of the country as well.

Scott Bursey (06:52)

wide array we can safely say. So what caught my attention about you, Adam, was the fact that you’ve been able to maintain a boutique advisor level touch while operating at an institutional billion dollar scale. That’s not easy, especially in this climate. What’s been the key to keeping your machine running smoothly?

Adam Finkel (07:17)

Yeah, I mean, I think ultimately it’s just execution and being able to execute for people and, you know, being able to offer solutions to people and help them really, you know, navigating the capital markets, which is an ever changing environment. I mean, it’s, you know, from one year to the next, it’s, you know, it can change dramatically. And so, you know, you have new types of capital and new lenders coming into the market. You’ve got people.

leaving the market, you’ve got new programs coming into effect, lenders have different tastes of what they’re looking for, ⁓ and also really navigating all the different changes with the different asset classes because as you know, we’re in, there’s a large market cycle, but each asset class is on its own individual cycle as well. So really helping people to understand

you know, how lenders and capital is looking at, you know, these deals and these markets and what their appetites are for. And, you know, really what I do, Scott, is I really focus on getting a really… ⁓

good understanding of what are the investment goals and objectives of my client. And then I take a look at the asset, how is the asset performing? And then I triangulate that with the best source of capital, whether that’s going to be a bank, a credit union, a CMBS loan, a life company, a debt fund, private capital, and making sure within those types of capital,

which groups are going to be the most aggressive in getting my clients what they’re looking for. So that’s essentially what I’m doing every single day.

Scott Bursey (09:12)

Makes perfect sense. Now, every operator I know has a moment where things got real. Maybe a deal that went sideways or a time that you had to pivot fast. You mind sharing one of those moments with us?

Adam Finkel (10:00)

Sure. ⁓ Well, you know, right now you have borrowers, know, especially, you know, if you’re looking at multifamily, for instance, where…

you know, they acquired value add properties, you know, let’s call it, know, 2019, 2020, 2021, you know, with a business plan to go in, you know, do capital improvements, increase the cashflow, increase the value, and then, you know, either refinance or sell. And, you know,

know, they put in the work, they boosted

the cash flow, they’ve got increased ⁓ NOI, now it’s time to either refinance or sell. And really, I guess, on the refinance side, for people who are looking to hold ⁓ on, what they’re finding is that they can be upside down on their loan,

what many folks are finding today is that although they were very successful in effectuating their business plan, you know, they put in the work, they boosted

the cash flow, they’ve got increased ⁓ NOI, now it’s time to either refinance or sell. And really, I guess, on the refinance side, for people who are looking to hold ⁓ on, what they’re finding is that they can be upside down on their loan,

right? The in-place cash flow isn’t able to support the existing debt, even though they did everything that they needed to do,

because

of external market factors, they’re unable to kind of go to the next step. So we’re helping people pivot right now and find solutions on how do I create a cash neutral situation where I don’t need to go to my investors for a capital call, how do I solve this situation? So that’s really, instead of going to some of the more traditional lenders, finding some of these non-traditional lenders that have more unique programs that allow

people to ⁓ obtain more dollars. And you’re starting to see more and more of those programs and those solutions coming to market. And so we’re helping people right now, ⁓ looking at those types of opportunities so that… ⁓

you know, they can get out of their situation and move forward and, you know, continue to effectuate their business plan, keep their investors happy and move forward. So, you know, I’ve got several groups that, you know, we’re helping, you know, do that right now.

Scott Bursey (12:40)

It’s incredible how the moments that feel like a disaster, Adam, in real time, often become the foundation of the next 10 years of growth. And, you know, honestly, that right there is the filter. It’s what weeds out the dabblers and defines the investors who actually have the staying power to weather the cycles. Let me ask you this. What are you most focused on solving or scaling next?

Adam Finkel (13:11)

I think right now it’s really wrapping my head around…

everything that’s happening in the marketplace and all of the different, you know, sources of capital that are out there because, you know, the, the, market and the environment is always changing and evolving and just trying to keep up on that, you know, is always a challenge, right? For me, it’s, know, keeping organized, keeping on top of who’s doing what, you know, making sure I’m getting updated by, you know, my various capital partners on, you know, what kind of programs they have, how are they looking at things?

how is their underwriting being adjusted to today’s environment and you know making sure that You know I’m able to help folks navigate that and staying organized and you know making sure that I’m staying in front of people is You know really kind of top of mind right now and you know that entails You know daily calls with lenders that entails, you know making sure that I’m at, you know the appropriate conferences like you know mortgage

banking, you know, conferences, ⁓ you know.

NMHC, which is a huge apartment conference, and just making sure that I’m getting out there and I’m talking to the folks and creating relationships with those lenders and those capital sources. Because when they have broken bread with you and they’ve met you at a conference, when they’ve seen you in person, it really goes a long way in being able to effectuate the business. It’s like, whose dealer are they gonna pick up? Whose email are they gonna respond to? Whose phone call are they gonna

respond to. It’s a lot easier when you you have a real connection with people so that’s something that I find that’s incredibly important. It’s you know not only my relationship with my clients but also you know the capital sources as well so I can bring the two together.

Scott Bursey (15:57)

Being active to that degree is the key. What’s your next major goal? The bullseye if you will, Adam.

Adam Finkel (16:08)

Sure. Well, Scott, for me personally, ⁓ you know, I’m working on building up my team here at Marcus and Millichap, you know, hiring some folks to help me, ⁓ you know, stay organized, effectuate my business, you know, be most productive and be efficient, ⁓ you know, with my time so that I can have a greater, you know, outreach to, you know, to the community, essentially.

Scott Bursey (16:37)

That’s huge. Now the next move is where the leverage lives. It can either, you know, perfect your operations, Adam, or detonate your workflow, depending on the strategy that you deploy. Interested to know, how do you maintain your edge when things are going well? It’s easy to grind when you’re broke, but how do you stay hungry when you’re successful?

Adam Finkel (17:05)

Well, that’s a good question. think you just have to kind of have that in you, right? You have to have a certain, you know, ambition and, you know, drive that that’s in you no matter what, right? Whether it’s, you know, business is slow or business, you know, you have a lot of business. You know, you always have to be out there. You always have to be figuring out, you know, how you stay relevant, how you stay in front of people, you know, how you stay involved in the community, ⁓ you know, those

those things are so important and. ⁓

I’ve got quite a few years left in me in my profession. So not looking to slow down anytime soon, but really just continue to grow, ⁓ especially under the Marcus and Milochap platform, which is a tremendous platform. And really just trying to continue to serve my commercial real estate community here locally, nationally, and continue to be a resource for my clients at a very,

very high level because there’s a lot of folks that are out there that do what I do. It’s a very competitive business, so it’s really important to remain active and let people know what I’m doing. And that’s why I participate in these types of podcasts and I’m on panels at conferences and I try to stay active on my LinkedIn and offer valuable insights.

sites to folks and really just continue to let people know what I’m doing and let people know what’s going on in the market.

Scott Bursey (18:49)

We can safely say the fire is burning as strong as ever for you. Now, I know a lot of our audiences either earlier in their journey or looking to level up at them. And I think they’d benefit from hearing this from you. When it comes to building relationships and growing your network, what’s made the biggest difference for you?

Adam Finkel (19:13)

Well, I think that, you know, being involved in industry organizations and community organizations and, you know, not only being a paid member, but, you know, also really being involved, you know, going to the events, joining a board, joining a committee, you know, going the extra step, I think is really, really important. You know, for instance, you know, Urban Land Institute is, you know, an international

you know, commercial real estate organization that hits, you know, all different types of asset classes and, you know, it’s, ⁓ they have a presence in most major markets and I’ve been very involved in ULI here in Phoenix and as a young man, I was, you know, doing, involved with different groups and they have a thing called Partnership Forum where you get together and they’ve got a mentor and, know, that really helped me create relationships with both my peers.

along with folks that were already really established leaders, you know in the industry and you know what I did was I was I was on the programs committee and so I joined the programs committee and I actually organized a ⁓ local shark tank program that they would have at you know, their annual they’ve got a big annual seminar called Trends Day here, which is you know, attended by hundreds of people and so as part of that

We would do a shark tank and where people would actually come and pitch their deals in real time to you know a panel of experts and it was very interactive and it was a very successful program and you know that gave me a little bit of you know credibility You know in in my local market here that people said hope man that Adam Finkel He’s a real go-getter look what he did right and I actually created something and and I was effective in something and so you know that

really helped me in the community here and it know it helps to open up doors so you know just like I said you know going the extra mile not just being a paid member but actually going and doing something that’s going to set yourself apart I think is you know very important and has helped me you know with my career and grow my relationships.

Scott Bursey (21:33)

That hits home. In an industry that’s so transactional, being the person who actually shows up when there isn’t a deal on the table, it creates that competitive edge around your business. It’s that unsexy consistency that most people aren’t willing to do.

Interested to know as well. What does your tech stack look like right now? Is there one piece of software or perhaps AI that has actually moved the needle for your team recently?

Adam Finkel (22:07)

Well, I could go on about AI for days. ⁓ I think it’s obviously revolutionizing how we work and how, you know…

our level of production and efficiency and it’s something that is evolving so quickly. And, you know, I’m always trying to figure out, you know, how I can utilize AI to help me ⁓ and the different platforms such as, you know, chat, GBT and Claude and Gemini and, you know, each, each program sort of has its own strengths and weaknesses and kind of understanding, you know, what you

can use certain things for and I think everyone is really trying to figure out right now how do I best implement this technology into my day-to-day life, right? And so I’m using it in a variety of ways, whether it’s helping me do research, ⁓ whether it’s helping me craft better email responses or help me with my marketing or LinkedIn posts.

or as just a sounding board where I’m bouncing ideas off it and talking through, helping me strategize, how do I approach a certain deal or a certain situation, helping me to create effective marketing packages for my OMs. And then also you can create your own separate GBTs and AI agents.

and I think it’s just continuing to evolve. So one thing that I’ve really noticed about AI is that you can have a lot of ideas about.

what you want it to do and accomplish, but then actually making it do that can be a different story, right? So, you know, the idea of a lot of things is great, but then, you know, how do you really implement it? And, you know, it’s really been trial and error, and there’s been a lot of things where I’ve had an idea and I’ve been able to get 95 % of the way there, but not quite 100. And if you’re not at 100, it just doesn’t really work. So I’m really excited to kind of continue to explore how I can utilize it.

and implement it and just make me a lot more productive and efficient with what I’m doing and ultimately you know that’s going to benefit my clients as well.

Scott Bursey (24:46)

Well stated. All right, before we wrap, if someone wanted to reach out, connect with you, maybe collaborate or learn more about what you’re doing, what’s the best way for them to contact you?

Adam Finkel (24:58)

Sure, ⁓ everyone’s welcome to email me at adam.finkle at marcusmillichap.com. ⁓ You can find me on the Marcus and Millichap website with all my contact information and I’m always available. ⁓ Reach out, call me, text me, email me. ⁓ I’d love to, always happy to chat with folks, share with certain insights what I’m seeing.

in the market, know, happy to take a look at their deals, their pro forma’s, give them, you know, whatever thoughts on that and, ⁓ you know, I love this stuff. So I definitely welcome, you know, people reaching out to me and I’m happy to be a resource in any way I can.

Scott Bursey (25:21)

Perfect, well listen, I appreciate your time, your story, and your perspective. We need more people in this space who are doing it the right way. Thanks again for being here. And for those of you tuning in, if you got value from this, make sure you’re subscribed. We’ve got more conversations coming up with operators just like Adam, who are out there building real businesses. We’ll see you in the next episode, everyone.