The founder of one of America’s largest commercial real estate financing firms has launched a new, separate company that educates the public about the power of lending as a pathway for commercial real estate investment – and then helps individuals become actual lenders.
Ira Zlotowitz, founder and president of Eastern Union, which this month marked its 18-year anniversary, launched the new firm, The Ira Group. Eastern Union, which continues to be led by Mr. Zlotowitz, closed a total of $12 billion in debt and equity financing over the past three years.
Focused on the lending side of the real estate investment equation, The Ira Group’s target market includes both those with past lending experience, as well as newcomers to the world of commercial real estate lending. The new company will be engaged in opportunities extending across a full spectrum of risk and return.
To introduce The Ira Group to the marketplace, Mr. Zlotowitz will personally host a 60-minute seminar that educates attendees about the highly viable option of becoming a lender, and spells out the specific steps participants can take to join the ranks of syndicated lenders at various levels of risk.
He will present the seminar on Wednesday night, May 29 in Lakewood, NJ and on Wednesday night, June 5 in Israel. Participants may attend in person, or they may take part in an interactive webinar format from any location via streaming. Interested parties can register for either seminar by visiting The Ira Group.
“We are educating the public to the fact that investing in real estate is not the only way to benefit from commercial real estate,” said Mr. Zlotowitz. “You can also be a private lender.
“As the first component of our two-part business model, we educate people about the benefits of lending as a secure pathway to investment success,” said Mr. Zlotowitz, who has trained more than 4,300 people in commercial real estate financing via online and in-person seminars, courses, internships, and within Eastern Union.
“People generally think that you have to be a banker to be a lender, but that’s not so,” he said. “It isn’t difficult for individual people to be lenders, too, and we will educate you about how to do it.”
“As the second component of its business model, The Ira Group introduces prospective lenders to other lenders offering opportunities covering a wide range of risk levels,” said Mr. Zlotowitz. “We understand how most people are not in a position to set something like this in motion by identifying, funding, and servicing loan opportunities on their own.
“After we have educated you to the fact that lending is a real and serious option, you will have the opportunity to meet with other lenders who are actively assembling a team of co-lenders all focused on a particular asset.”
Eastern Union, he explained, concentrates on conventional, “business-to-business” real estate mortgage brokerage models through which borrowers are introduced to lenders that match their borrowing needs.
By contrast, The Ira Group employs a “consumer-to business” approach that makes introductions that then allow individual, private lenders to collectively participate in a syndicated loan being packaged by a private, public, or institutional “hard-money” lender serving as the lead lender or syndicator. Participating consumers may choose their own preferred risk level, typically within the scope a single transaction. The level of risk can extend from a conventional, four- to five-percent range up to returns reaching twelve percent or more.
Risk levels generally reflect the individual lender’s proportional participation within a particular, overall transaction syndicated by the hard money lender. Rates starting at four to six percent, for example, would generally be available to loan participants taking on less than fifty percent of the asset’s total value. While some participants may lend at amounts in the $250,000 range, others may lend at a level as low as $25,000.
“You don’t have to own an asset to reap the financial benefits of commercial real estate investment,” said Mr. Zlotowitz. “Lending is a smart option, yet too many people simply don’t realize that it’s a real and viable option. Designed for veteran players or first-timers, this time-tested doorway into real estate makes it easy and manageable to join the ranks of successful lenders.”
About The Ira Group
The Ira Group provides syndicated lending opportunities to both experienced and first-time lenders in the commercial real estate marketplace. Ira Zlotowitz, president and founder of Eastern Union, one of America’s largest commercial mortgage brokerage companies, founded the company.
The Ira Group educates prospective lenders about the benefits of lending, and then introduces prospective lenders to other lenders. Lenders then have the option of participating on a syndicated basis at a full range of risk levels, with higher risk amounts earning higher yields.
For more information about The Ira Group, please contact Aaron Eller at 732-719-5200 or at [email protected]
You too can be a hard money lender? Thanks, but no thanks. I’d rather drive my jalopy and continue to live in my fixer upper rather than make a parnassa that way. I would consult with a Rebbe fluent in “ the fifth shulchan aruch” before getting involved in that line of business.
Mr Zlotowitz,
Please explain the benefit of joining a syndicate over investing in a Real Estate Investment Trust?
Thanks so much.
Continued Hatzlocah!
@eli
Fifth shulchan aruch? Your comment alone transgresses on 3 of the 4 chalakim so I wouldn’t lecture on the fifth. Enjoy your jalopy.
Chill out Menachem. Eli is entitled to his view. I would just add that part of the fifth chelek is keeping a low profile.
You should stay far away from lending with ISKA if you can . Its not worth it from a financial view especially if you have other even maybe lower return investments you can get into. From a halacha and from financial end it probably wont end u bringing you bracha and menuchas hanafesh. Im talking from first hand experience and I jknwo many others in the field who used real heter Iska
who cares how others are investing their wealth and y does mr zlotowitz keep on publicly letting us know his business ventures? What happened to keeping things hidden from the eye (others) to get more bracha?
This is a risky business. The mortgage company has first lien, and generally the one doing the syndicating makes some money regardless, so if things go south, you are last to be paid back. Cap rates are also very low, and their is more money out there already, than their are deals available. All for a 4-6% return? There are stocks and bonds paying 6% dividends with a lot less risk
For my whole career, I have avoided personal involvement in actual lending even with a “heter iska.”
After lengthy consultation with my Rabbi who is an expert in Jewish Law, The Ira Group forged a path which mitigates various legal, philosophical, and ethical concerns. Through engaging exclusively in loans for true and fair Commercial Real Estate ventures which operate at appropriate and tolerable risk levels and profit levels for both the lender and the borrower, the applicability of the “Heter iska” is ensured.
Consult with your own Rabbi for guidance to see if your approach also avoids the halachic, hashkafic and usury concerns found by greed filled or desperation driven investment in dubious loan shark, daredevil style investing.
R’ Ira,
Could you please share the name of your Rov? Likely it’s someone who is recognized as an accepted posek.
Thanks
Due to the hashkafik and halachic nature of this issue one should ask the Rav that they ask all their questions and shailos too.
There are many reputable stocks paying equal or higher returns, including many well known companies in the financial sector with long track records of stability and earnings. If you think that now is a good time to invest in Real Estate, their are public REITS that are paying comparable returns. They are regulated, have more buying power, which opens them up to more opportunities, and don’t have someone taking the high fees that syndication’s do.
I am not advocating any particular stock, nor am I advocating purchasing any stock right now (there may be a further dip coming, and always better to buy on the way up, than on the way down.
This is my second comment on this, not because I have any particular agenda against any particular person, nor am I advocating for any particular investment, but many people have in our community have been burned by these types of investments, myself included. It has been a while since it happened, but the crash always comes when people least expect it. In other investments, even when there is a crash, long term, they typically recover. If a syndication deal goes bad, you are left with nothing.
Even in a good investment climate, hard money loans (which this is), have last position, if something goes wrong, you are last to get paid. Even in a good market 4-6% returns do not justify that kind of risk.
@JustWondering
You are 100% all around!
The seminar is perfect for you. It will explain why and how lending is an option for everything you described and with an a/b structure you can pick your spot.
TheIraGroup.com
Ira is an inspiration and his willingness to communicate so transparently should be a lesson to others in our business community.
The caution and skepticism is well founded, but when you have someone actually introducing a new model, he deserves a fair hearing.