Jeremy Hill is a distinguished figure in private debt, renowned for his expertise since founding JB Capital in 2003. As a leader, he’s transformed the company into a key player in capital placement and advisory services within the US and Canadian lower middle markets. Under his guidance, JB Capital has facilitated approximately $1 billion in capital for growth companies, showcasing Jeremy’s knack for innovative solutions in complex situations. Leveraging a vast network, including top commercial banks and global advisory firms, Jeremy’s success is evident. He shares his insights as a guest contributor to CNBC and Bloomberg while providing invaluable financial advice and board leadership to prominent growth companies.
Episode Highlights Here:
Jeremy So in that world, if I’m going to come in and invest in real estate, I would much rather be a lender. Right? So I’m, I’m less, I guess less susceptible to the varying tides of equity movement. So for us, whether it’s on the corporate side or the real estate side, I look at credit or loans, almost like, like a bit in a horse’s mouth. Brett So besides solving problems, what would you say is the number one secret to building wealth through lending capital? Jeremy You know, I think the market is that we have right now, you know, if we and I know a lot of your audience is really tailored and focused around, you know, all things real estate, and we look, historically, over the last, you know, 1000 plus years to present day as real estate has really always been a cornerstone of a family or a generational wealth, whether that’s you and me family, whether it’s, you know, institutional family or legacy families, that is through generations have always had a cornerstone of their wealth built in real estate. The market right now in real estate, I think is odd, right? We’ve seen an amazing kind of run up in interest rates but there seems to be functionally still a disconnect in where sellers of those assets have not necessarily acquiesced to the pricing in that market. And there’s still a little bridge there that hasn’t been done. So in my mind, right now with where it is that the economy is, from a real estate standpoint, I would much rather be a lender than an equity participant. And so since those valuations are a little bit all over the board, your five or $10 million property today, it’s worth 10. Today, it’s worth 14 Next week, and it’s worth three the week after based on a lot of decisions that are in DC that we can’t control. And so in that world, if I’m going to come in and invest in real estate, I would much rather be a lender, right. So I’m less, I guess, less susceptible to the varying tides of equity movement. So for us, whether it’s on the corporate side or the real estate side, I look at credit or loans, almost like, like a bit in a horse’s mouth, right? Like, it’s this eight inch piece of steel, that I can control a 1500 pound animal with, like, I don’t have to own the horse to control the horse. And so for me, if you structure debt correctly, you can easily get equity level returns, with all of the protections of being lender, and that’s kind of the approach it is that we are taking it is to not only develop, you know, our personal and familial wealth, but to but to do that for, you know, the people that is that we partner and invest alongside, Brett Okay, so it sounds like I understand the very nature of where we’re at in the market cycle, especially given where Cap rates, interest rates are at right now. And just the risk is associated with owning assets, I love the way you put it, you know, credit credit, or loans or like a bit in the horse’s mouth, you can control the entire, the entire animal in that sense that if you can take a good solid debt position, and still get the equity returns that a lot of people are looking for. Right or better. And you go why and less risk, you know, why wouldn’t you do that? Right. And so, that sounds like the first secret to this is understanding the real estate to the debt relationship marketplace, and the returns versus the risk? What would you say the next secret? Is there? Unless you catch that right, the first part January, do you want to add to that or subtract? Jeremy No, I mean, I think that that’s, that’s useful is just really functionally understanding, you know, the time in the market, there may be times it is to where it is that you, you know, you want to leverage up dramatically it is because, you know, you go back to a 3% interest rate, right, or something like that. I mean, my, my family, we’ve just gone through the situation to where it is that we’ve formed our own kind of family, you know, board and put all the trust and stuff together. And one of the things that we made a decision at is that sometime in the next five years, eight years, 10 years, whenever it’s going to be I don’t know, but if we ever get down to a point it is to where there is sub 3% interest rates again, I’m going to buy everything physically possible, whether it’s a, you know, an ice cream stand or an apartment building, we’re going to acquire as much as possible until we get to that point in time. I think structuring things from a debt lens just from all of the protections that it gives you is probably a more prudent approach. And we’re always uh, you know, eat your own dog food kind of guys, right? Like, I mean, I we don’t do anything it is we’re not doing ourselves. Watch the episode here: https://www.youtube.com/live/RDJxv1wWo6s?si=8BGcTeBEBjAy-6qK
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About Jeremy Hill
Jeremy Hill is a distinguished figure in private debt, renowned for his expertise since founding JB Capital in 2003. As a leader, he’s transformed the company into a key player in capital placement and advisory services within the US and Canadian lower middle markets. Under his guidance, JB Capital has facilitated approximately $1 billion in capital for growth companies, showcasing Jeremy’s knack for innovative solutions in complex situations. Leveraging a vast network, including top commercial banks and global advisory firms, Jeremy’s success is evident. He shares his insights as a guest contributor to CNBC and Bloomberg while providing invaluable financial advice and board leadership to prominent growth companies.
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