Leo Jacobs, speaks with Phil Rosen, Partner at Shutts & Bowen LLP, at the Real Deal forum. They stress the importance of protective measures in forbearance agreements and the strategic need to be "dangerous" enough to stand firm in negotiations.

Real Estate Slowdown and Strategic Counsel

Insights from Phil Rosen at Shutts & Bowen

At the Real Deal forum in South Florida, Leo Jacobs sat down with Phil Rosen, Partner at Shutts & Bowen LLP, to discuss the current state of the real estate market and the critical role of strategic counsel in navigating challenging times. The conversation shed light on the market's slow transaction pace for large multifamily assets and the increasing patience of banks with distressed borrowers.

You can watch the full interview below to gain further insight:

Despite media narratives suggesting widespread distress in the real estate market, Rosen emphasized that this is not as pervasive as reported. "Things are happening, but they’re happening slowly," he explained. Banks are demonstrating notable patience, often allowing borrowers to extend deadlines by six to twelve months, a level of leniency that has exceeded expectations.

Transactional Counsel as a Problem Solver

The discussion delved into the importance of effective transactional counsel in protecting real estate investments. Jacobs, speaking from his experience in bankruptcy and litigation, highlighted the pitfalls of inadequate counsel. Rosen agreed, noting that the details in forbearance agreements are critical to safeguarding a client’s future. His team at Shutts & Bowen takes a proactive approach, fostering partnerships with lenders and focusing on problem-solving rather than placing blame.

"Forbearance agreements are about thinking two steps ahead," Rosen explained. "We insert provisions that might allow lenders to bring in new capital or facilitate a loan buyout, ensuring the client’s bottom line remains protected."

Balancing Collaboration and Assertiveness

Both speakers underscored the importance of collaboration in negotiations while maintaining enough leverage to stand firm. As Jacobs put it, “Engaging with the lender is essential, but you also have to be ‘dangerous’ enough to show you’re capable of standing your ground.” Rosen agreed, highlighting the delicate balance required in these negotiations. "If you owe the bank a little money, it’s your problem. But if you owe the bank a lot of money, it’s the bank’s problem," he quipped.

The conversation between Jacobs and Rosen showcased the evolving dynamics of the real estate market and the strategic thinking required to navigate it successfully. As transactions for large multifamily assets slow and banks exercise patience, the role of experienced counsel becomes even more vital.

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Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon.

Interview with Ruben Izgelov, CEO and Founder of WeLend

Continuing our interview series, this discussion focuses on how investor sentiment in the real estate market has shifted from caution to confidence following the Trump administration's win. Previously hesitant investors are now eager to increase their stakes, signaling bullish market momentum. Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon. They also assert the need for updated policies to keep pace with evolving market dynamics, predicting a positive trajectory for the sector.

Watch the full interview for key insights and takeaways:

Leo Jacobs: What are the effects of a Trump administration on the commercial real estate side and the residential real estate side? A lot of our investors in our fund today have been, I would say, a little bearish on the market for some time. But what I’ve learned is that many of them are now ready to increase their investment. The sentiment has changed.

Ruben Izgelov: Absolutely. Thanks for having me, Leo. It’s a pleasure to be here with you.

Leo Jacobs: Pleasure’s all mine, Ruben. From what I understand, there are about 700-800 people here. That’s amazing. Out of all those people, I’m standing here with the one and only Ruben Izgelov, CEO and founder of WeLend, a direct lender. Your face and name are everywhere as one of the lead sponsors of this event. So, a lot of credit to you for that. Keep doing what you’re doing. You’re doing an amazing job.

Ruben Izgelov: Thank you, Leo. I really appreciate it.

Leo Jacobs: So, let’s get into it. We’ve been walking around and getting a feel for the market’s temperature after the Trump administration’s win. Now, whether you’re for him or against him, that’s not the discussion here. We’re here to talk about the facts. What’s the impact of a Trump administration on commercial and residential real estate? You’re a lender with a lot of activity in the tri-state area and nationally. How is this administration going to affect your business judgment in the first, second, and third quarters?

Ruben Izgelov: Great question, Leo. Here’s what I’ve experienced over the past few days. Our investors, especially those in our fund, were somewhat bearish during the prior administration. Their whole viewpoint was “wait and see.” But with Trump’s win, I’ve seen a shift. Just yesterday, I was running around Florida meeting with investors. Many of them are now ready to increase their investment. They’re more bullish on what’s to come. I’d say the sentiment has definitely shifted to a more positive outlook.

Leo Jacobs: That’s amazing. So you’ve decided, from a business judgment standpoint, that you’re ready to invest more because the sentiment is positive. But what about those people who don’t agree with the policy decisions? What’s their perspective?

Ruben Izgelov: Honestly, Leo, most of the people in our corner are aligned with the positive sentiment. There’s always a group that’s not happy with the administration—for their own reasons—but I’ve noticed that those individuals tend to stay quiet or "lick their wounds in the corner," so to speak. On our end, both investors and borrowers are very bullish on what’s ahead. We’re seeing more deals and higher levels of investment activity. In fact, while we’re talking right now, I’m pretty sure my phone’s blowing up with calls from brokers, borrowers, or investors looking to deploy capital.

Leo Jacobs: Sounds like a lot of action is happening. Let’s shift to the Fed. Everyone’s curious about what the Fed’s next move will be. They’re set to speak in about an hour and a half. What’s your take on how the Fed is going to react to all of this?

Ruben Izgelov: Oh, that’s a big one, Leo. You’re right—it’s political, but it’s crucial. Look, when you have positivity in the market and strong economic sentiment, you inevitably get inflation. The Fed’s challenge is managing that inflation. They’ll have to decide how to adjust rates based on the administration’s future policies. Trump’s background in real estate gives him insight into the industry’s dynamics, and I think that’s going to influence how things play out. We’re seeing other countries, like Europe, cutting rates—25 basis points just the other day. The Fed might follow suit with a similar reduction. But it’s also possible they’ll hold steady and wait.

Leo Jacobs: So you’re thinking the Fed might be influenced by this positive sentiment and could reduce rates by 25 basis points, following Europe’s lead?

Ruben Izgelov: It’s possible. The sentiment is strong, and there’s pressure on the Fed to support economic momentum. If they see global central banks cutting rates, they’ll likely consider it too. But they’ll also be mindful of inflation—they don’t want it to get out of hand.

Leo Jacobs: Last question for you, Ruben. Assuming the market keeps trending in a positive direction, what changes do you think need to happen for business decisions to become faster and stronger?

Ruben Izgelov: That’s a great point, Leo. We’re a New York-based company, so I’ll speak from that perspective. The policies that worked in the past may not work today or tomorrow. I think the "red wave" we’re seeing now is a sign that it’s time for policy changes. New times require new strategies. Business leaders and policymakers alike need to recognize that what worked before isn’t necessarily effective now. If we’re going to speed up decision-making and drive stronger growth, we’ll need to adapt to the new environment.

Leo Jacobs: Well, let’s hope the Trump administration’s approach works out. It seems like the world’s sentiment is shifting in that direction, and it’s encouraging to hear your perspective.

Ruben Izgelov: Absolutely, Leo. No matter which side of the aisle you’re on, there’s no denying that the world’s moving in a positive direction. I’m excited to be part of it and to see what’s next.

Leo Jacobs: Ruben, thank you so much for your time. It’s been a pleasure talking with you.

Ruben Izgelov: Pleasure’s mine, Leo. Thank you.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated.

Navigating the Challenges of Opening a Business in Miami: Insights from Hospitability Expert, Felix Bendersky.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated. In a recent interview, Leo Jacobs sat down with Felix Bendersky, a prominent figure in hospitality brokerage and the owner of F+B Hospitality Leasing Brokerage, to discuss the challenges faced by entrepreneurs, especially those aiming to open restaurants and bars in the area.

Here’s a closer look at the critical takeaways from the session:

Felix pointed out the number one issue plaguing businesses in Miami-Dade County: the notoriously slow and inefficient permitting system. This, he explained, can delay business openings, leaving entrepreneurs stuck with mounting expenses before even serving their first customer.

The Financial Burden of Permitting Delays

The permitting delays are just one part of the larger problem facing business owners in the hospitality sector. As Felix explained, many restaurateurs and bar owners, after investing significant amounts of money and energy, find themselves unable to open due to the lengthy permitting process. Entrepreneurs often take out loans, use personal savings, or borrow money from friends and family to fund their ventures. But when delays hit, the financial burden grows heavier, and the dream of opening a successful establishment starts to feel out of reach. "We have restaurants that have spent $1.8 million and never opened," Felix revealed.

Felix emphasized the importance of education, advising potential clients about the challenges they will face when opening in Florida. He highlighted the significance of working with professionals who understand the financial and legal terrain. This is where the expertise of lawyers like Leo Jacobs comes in. Jacobs’ firm specializes in helping clients navigate financial turmoil, advising on everything from leases to bankruptcy protection. 

The key, Leo Jacobs noted, is to educate clients upfront about the potential pitfalls, so they are better prepared to face the realities of opening a business in a competitive market like Miami.

Mitigating Risks in Miami's Hospitality Industry

The discussion then shifted to how business owners can mitigate the risks associated with running a restaurant or bar in Miami. Both Felix and Jacobs strongly agreed that success is not just about a great concept; it's about understanding the numbers and having the right team in place. 

"A good running restaurant in Miami is typically running on a 20 to 22 percent profit margin," Felix asserted, underscoring the importance of financial foresight. When an entrepreneur’s margins are slimmer, as is often the case, they may find themselves in a difficult position, particularly when unexpected expenses arise. In response, Jacobs advised clients to carefully assess their leases, particularly the terms surrounding personal guarantees, and to consider strategies like bankruptcy or restructuring when the financial situation becomes untenable.

Despite the challenges, both Felix and Leo believe that with the right support and advice, entrepreneurs can navigate the tumultuous waters of Miami’s hospitality scene. Both experts emphasize the importance of counseling over mere advocacy. While Jacobs' firm offers strong legal advocacy, it is his approach as a counselor that truly sets him apart. 

By providing clients with a realistic understanding of their options and guiding them toward informed decisions, Jacobs ensures they are well-equipped to make it through the most difficult situations. In a fast-paced, high-risk environment like Miami, having a trusted advisor in your corner is invaluable, and with the support of professionals like Felix Bendersky and Leo Jacobs, the path to success may become just a little bit clearer.

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As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

How the New Trump Administration is Shaping the Commercial Real Estate Market

Earlier in November, at The Real Deal Forum in Miami, Leo Jacobs sat down with Nazar Nazarov, CEO of LendIQ, at the Jacobs PC booth. The main topic of the interview was how the new Trump administration could potentially impact the commercial real estate market. As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

Leo:
Good afternoon, everyone. We’re back at Jacob V’s booth here at The Real Deal. I’m joined by Nazar from Lend IQ, and today we want to tackle the elephant in the room. The Trump Administration has won another term. Whether you’re for it or against it, we need to objectively discuss how this will impact the commercial real estate market. Nazar, what’s your take?

Nazar:
Thanks for having me, Leo. I think it’s undeniable that the Trump Administration has been positive for real estate. It’s no secret that Trump himself has been a real estate entrepreneur for over 45 years. His administration’s approach to less regulation and pro-business policies is creating a lot of confidence. You can feel it here in the room—it’s electric.

Leo:
Right. So you’re saying the market is feeding off this confidence. What’s driving that?

Nazar:
It’s about clarity and direction. People are optimistic because they expect less regulation and lower rates, especially with the Federal Reserve meeting happening today at 2:00 PM. The market thrives on predictability, and the Trump Administration projects a business-friendly environment. That kind of stability encourages more transaction volume and capital commitment.

Leo:
So you’re saying that this is empowering the market to make better and faster decisions?

Nazar:
Exactly. The market hates uncertainty. When there’s ambiguity, people hesitate. But with clarity—whether from the government or the Federal Reserve—you’ll see large institutions and family offices deploying more capital. The Trump Administration’s focus on reducing red tape gives investors confidence to move forward.

Leo:
And where does Lend IQ fit into this? How do you help capitalize on this momentum?

Nazar:
At Lend IQ, we’re a direct private lender focused on real estate investors. We handle everything from ground-up development and construction loans to land loans, fix-and-flip, and long-term rental loans. What’s exciting is that right after the election, we saw investors who had projects on the back burner come back to the table. That’s the kind of confidence shift we’re talking about.

Leo:
So you’re saying business confidence translates directly into increased activity for lenders like you?

Nazar:
Absolutely. When borrowers see a stable environment, they’re more willing to take action. The clearer the path ahead, the quicker deals close.

Leo:
Interesting. Now, let me play devil’s advocate for a moment. Critics of the Trump Administration argue that it’s too favorable toward large corporations and institutional investors. What about smaller investors? Are they being left out?

Nazar:
That’s a valid point, but it’s important to understand that not all investors are Blackstone or KKR. At Lend IQ, we work with many small to mid-sized investors—people who own three to five properties in their portfolio. Policies that reduce regulation benefit them too. For instance, eliminating the 1031 exchange, as was floated by the previous administration, would have been disastrous for these smaller investors.

Leo:
So, from your perspective, the metrics on the ground show that Trump’s policies enable faster decision-making, while another administration’s policies might create delays?

Nazar:
Correct. But let’s be clear—this doesn’t mean no regulation at all. Regulation is necessary to keep bad actors out of the market. Overregulation, however, stifles growth. It’s about striking the right balance.

Leo:
And that brings us to the Federal Reserve. What do you think their role is in this equation? Will a basis point adjustment have a significant impact on borrowing and investment?

Nazar:
Great question. When the Federal Reserve lowered rates in the past, the market reacted even before the official announcement because the market is forward-looking. Now, under a Trump Administration, we expect rates to either stabilize or decrease slightly, depending on economic conditions. The market’s response will depend on how the Fed communicates its strategy moving forward.

Leo:
So, it’s not just about rate changes, but about the overall economic confidence?

Nazar:
Exactly. Rates are just one piece of the puzzle. If the market believes the economy is strong and inflation is under control, rates will naturally adjust. Investors will act based on that broader outlook, not just the Fed’s movements.

Leo:
Let me challenge you one more time. Do you think Trump’s business background is enough to keep this momentum going?

Nazar:
Trump’s business acumen is an asset, no doubt. He understands the nuances of deal-making and how to instill confidence in the market. That said, he doesn’t have a magic wand. Success will depend on how well his administration balances deregulation with maintaining a fair and competitive market.

Nazar:
Just this: Confidence is the lifeblood of any market, especially commercial real estate. The Trump Administration’s pro-business stance is giving investors that confidence. If the Federal Reserve complements that with smart rate adjustments, we’re looking at a very dynamic period for real estate.

Leo:
Thanks for your insights, Nazar. It’s always a pleasure speaking with you.

Nazar:
Likewise, Leo. Thanks for having me.

Innovating Office in Distress: Strategies for Managing Office Space Challenges. Interview Leo Jacobs and Eric Brody at the South Floria Real Estate Forum

Recently, the innovation stage hosted a riveting discussion with Mr. Leo Jacobs, one of the nation's leading experts in bankruptcy and workout counsel. The session, aptly titled Innovating Office in Distress, was a masterclass in navigating the pressures that arise in challenging financial times, particularly in the office space sector.

Understanding the Nature of Office Space Distress

Office distress is more than just financial strain. It's the compounded weight of emotional, operational, and strategic challenges. Leo Jacobs emphasized that addressing this begins with a shift in perspective: it’s not about perfunctory fixes like better coffee or yoga sessions but about confronting the hard truths of documentation, negotiation, and strategic planning.

The Role of Proactive Paperwork Management

Many developers and business owners overlook their loan documentation until it’s too late. Jacobs explained that this complacency often stems from three main barriers:

Denial: Not wanting to face potential issues.

Ignorance: Lacking knowledge of how to approach the problem.

Inaction: Being unsure how to proceed once the issue is recognized.

These barriers can lead to high-pressure situations where lenders exert undue influence. Jacobs stressed the importance of understanding your paperwork and seeking expert counsel early to level the playing field.

In negotiations, particularly with lenders, the ability to assertively say “no” is crucial. Jacobs highlighted that saying no isn’t about hostility but about signaling readiness and competence. It establishes a foundation for meaningful negotiations, where both sides can collaboratively address the real issue—the problem itself, not the people involved.

Strategic Aggression: A Necessary Posture

Jacobs introduced the concept of strategic aggression, which is about demonstrating your capacity to defend your position without necessarily engaging in conflict. This approach can compel lenders to reconsider their stance, knowing they’re dealing with a sharp, well-prepared party.

Avoid signing any documents presented by the lender without thorough review.

Recognize that pre-negotiation letters often signal terms not initially agreed upon.

Understand the legacy implications of decisions—bad deals can reverberate across generations.

Jacobs underscored the importance of having the right counsel during times of distress. The lawyer who structured your deal may not be the best choice to renegotiate under duress. Instead, seek professionals who approach the situation with fresh eyes and a wartime mindset—individuals equipped to challenge and renegotiate terms effectively.

Ultimately, the session was a reminder to act with foresight and intention. Whether you're refinancing, negotiating with lenders, or simply ensuring your office space remains a viable asset, proactive strategies and expert counsel are indispensable.

As Jacobs put it, “The problem is the problem.” With this mindset, stakeholders can shift from adversarial battles to solution-oriented discussions, ensuring better outcomes for all involved.

For businesses navigating distress, these insights provide a roadmap to not only survive but innovate through challenging times. 

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Real Estate Slowdown and Strategic Counsel

Interview with Ruben Izgelov, CEO and Founder of WeLend

Navigating the Challenges of Opening a Business in Miami: Insights from Hospitability Expert, Felix Bendersky.

How the New Trump Administration is Shaping the Commercial Real Estate Market

Innovating Office in Distress

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