An interview with Mike DeRienzo, contributing writer for Originate Report
For those familiar with Elizabeth (Beth) O’Brien’s career, the name “Encore” will make perfect sense.
After all, she has spent the last decade-plus innovating in the field of private real estate lending. So for Beth, Encore Finance is just that — a professional and personal encore.
“This is actually my third startup. After years of being an attorney and banker with a focus on commercial and residential real estate, I began to notice certain gaps between the markets.”
Those years included director roles at Citi, Goldman Sachs, and Auction.com. She took the lessons from those positions into her first startup, AuctionFinance.com, an online platform that assisted buyers in obtaining financing on assets purchased through Auction.com. Next, she founded CoreVest Finance, a leading nationwide private lender specializing in rental portfolio loans, credit lines, bridge loans, and build-to-rent loans for residential real estate investors.
“My business was a classic tale of seeing a need in the industry just adjacent to other things that were being done well and being able to expand a market. It’s no secret that residential mortgages are a huge business. The commercial mortgage business, while smaller, is also quite strong. But both businesses lack the same thing. They both fail to address the needs of the people who invest in residential real estate in a professional commercial sense. In fact, the regulatory framework fails to address this category well.”
While vision can provide you a path, more is required to turn a great idea into something that works. You need to develop connections and relationships with people that can help you make your company a reality through startup capital and other investments.
You also need a good strategy to make that vision happen. And O’Brien’s strategy is all about that next performance.
But from the beginning, Beth knew she needed more than a vision. The success of her ventures are a direct result of her ability to develop connections, build key relationships, and lay out a sound strategy for long term growth. To Beth, it’s always about what’s coming next.
“We like to think of Encore as an understanding that we are always playing for the next loan. We are not just transacting but building an ongoing relationship. This is why our tagline is ‘Encore — For your next loan’.” And for Beth, a big part of staying ahead is simply being prepared for what might happen next.
“As Louis Pasteur said, I am fond of quoting, ‘Chance favors the prepared mind.’ I’m not so sure I chose my career path; I always was open to and responded to the opportunities that I saw by being prepared. With good preparation, the right strategy, and the right capital, a business can thrive.”
A willingness to change direction when circumstances dictate is one attribute that has helped Beth navigate the never-ending twists and turns that come with operating a startup in a fast-moving industry.
“You need to be able to respond, react, adapt, and forge forward. Since this is my third startup, I’ve had the chance to learn a lot of lessons along the way. Though they’ve been different, they’ve all presented me with challenges that have required me to make quick decisions. The key is to keep making decisions and react quickly enough to course correct when you do hit a challenge. The most difficult part is telling when a speed bump is a mistake and needs to be fixed.”
And no matter how experienced and knowledgeable you are, mistakes will always happen.
“You always think you will not make the same mistakes, and by and large you don’t, but you make different mistakes because the market is different, and the circumstances are different. The greatest skill of an entrepreneur, in my opinion, is the ability to course correct in a timely fashion.”
One thing that Beth has found pleasantly surprising is the level of camaraderie and support in the residential real estate mortgage industry, even among competitors.
“That has been the biggest surprise so far on this journey. The amazing relationships developed in this industry as we grow together from clients to vendors, bond holders, and competitors. The support for everyone else in the industry is incredibly reaffirming.”
Relationships make up the foundation of Encore Finance — relationships built through dependable financing solutions that are tailored to an individual investor’s needs. This commitment to personalized solutions is one big reason that many of Encore’s clients have been in relationship with O’Brien for several years or more.
Outside of being a serial startup founder in a very demanding industry, what else makes Beth tick?
“I am a big cook and grow an amazing vegetable garden that forms the basis of my experimentation. I would like to write a cookbook since one of the most enjoyable things I ever did at work was help compile a cookbook of what everyone was doing during the quarantine.”
It’s fitting that someone with such a passion for creating businesses from scratch would also be an avid cook. From the boardroom to the kitchen, we’re definitely excited to see what Beth whips up next.
Check out full article here: https://geracilawfirm.com/the-originate-report/encore-performance-encore-finance-marks-third-start-up-journey-for-ceo-beth-obrien/
Encore Finance is thrilled to have attended the 10th Annual Build-To-Rent, Land & Homebuilding Forum of the West. We gained valuable insights into the evolving real estate landscape:
- The enthusiasm that once permeated the asset class has given way to a more discerning approach among investors. They’re becoming highly selective when it comes to choosing projects, sponsors, and markets. One key factor driving this shift is the expectation that interest rates will remain “higher for longer.” Market participants are adapting by recalibrating their return models to embrace this new normal.
- Operating expenses, notably property insurance, are on the rise. This upward trend is putting pressure on pro-forma cash flows, challenging the financial viability of many projects. However, amidst these challenges, there remains a strong sense of optimism surrounding the Build for Rent (BFR) asset class. 🏘️
- What sets BFR apart? It’s a naturally supply-constrained asset class due to its low density. Moreover, the increasing cost of homeownership is driving a surge in demand for rental homes, creating a favorable supply/demand equilibrium.
Encore Finance believes in the resilience and potential of the BFR asset class. We’re excited to be part of this dynamic industry and look forward to working alongside our partners to navigate these changing dynamics.
Explore cybersecurity & fraud threats in mortgages with CEO Ike Suri & experts at CMBA Mortgage Innovators 2023. Discover best safeguards for your business!
Watch the discussion below and learn about the best safeguards for your business!
As with existing commercial real estate assets, assets in a pre-construction or construction phase require valuation for capital raising purposes, whether funds are to be borrowed or raised via equity investors. Unlike existing assets, however, construction projects lack financial history to demonstrate value—there’s no rent roll, leases, or income statements for an appraiser to review. How, then, do commercial valuation consultants place a value on a construction project?
