Matt Willes of Skol Capital - How does the World of Mezz Lenders Work? (Plus a great perspective on life)! - The Michael Girdley Show Episode 27

The Michael Girdley Show

Michael Girdley (@Girdley) is joined by Matt Willes (@SkolCapital) to talk about Mezzanine lending. How does it work? When is it useful? How is a loan structured? We talk about Willes Capital, the industry, common practices, risk management, and much more.
-----
* Do you love Unusual Profits and want to see our smiling faces? Subscribe to our Youtube channel.
* Do you enjoy our content? Rate our show!
* Follow us on Twitter @unusualprofits Find success in small business investing and entrepreneurship.
-----
Unusual Profits episode 27

(0:00) Intro
(3:40) How does Mezz work? When does a Mezz lender step in? [Clip 1]
(4:26) What is the size of Mezzanine financing usually like?
(5:37) How do Mezz loans get structured?
(8:45) How did you decide to operate like this?
(11:21) What are the structures to protect your capital? What does a warrant do in terms of protection to the lender?
(17:14) How does a borrower end up in a bad position? How do you avoid a “loan to own” situation?
(21:08) How does the universe of Mezz lending returns works? How do you think about potential investments?
(25:33) Why are you in this business?
(27:39) How is the top of funnel typically built for a Mezz lender? Are you geographically limited?
(32:11) What is your underwriting group like? What occurs when making decisions?
(39:02) Do you have a step-by-step process to underwrite deals?
(43:31) What are the functions of financial models?
(44:31) Personal question: Why is your job title “Executive Assistant” in your LinkedIn profile?
(47:28) Why do you choose Twitter as your social media?
(50:35) Communities, bad apples & life learnings
(55:11) What are your thoughts & vision on your industry? How is technology affecting it?
(59:30) Would you encourage young people to consider getting into private lending as a career?
(1:00:30) One message to our listeners?
(1:02:05) Thanks and goodbye!

-----

Past guests on Unusual Profits include Jesse Tinsley, Rob LaBonne, Matthew Weidert, Craig Fuller, Sam Bacon, Cayse Llorens, and more.

-----

Additional episodes you might enjoy:

#24 The recruiter of choice: How JobMobz helps Silicon Valley companies grow so quickly - Unusual Profits e24
#19 Grocery Store Chain Business - Rob LaBonne of Labonne's Markets - Unusual Profits ep 19
#13 The Hard Money Lending Business - Matthew Weidert of Longleaf Lending - e13