PODCAST: Carmel Partners CEO Ron Zeff, Dekel Capital Founder Shlomi Ronen Talk First Republic Fallout
On this episode, we’re talking about the impact of yet another major financial institution's collapse, which was followed by another hike in interest rates from the Federal Reserve.
“There's just a lot of uncertainty out there, and this doesn't help at all,” Ron Zeff, the CEO of Carmel Partners, said on the show.
Zeff said while Carmel didn't have any loans with First Republic Bank, he did have personal deposits at the institution, which he reduced before its failure to below $250K.
He and Dekel Capital Managing Principal Shlomi Ronen talked over their views on where will be safe to acquire and develop and their approach to doing deals in the current climate. They had differing views of what markets are the most appealing to invest in, but both agreed that it will continue to be difficult to finance deals in the short term.
"The instability that's happening in the capital markets isn't discriminating geographically," Ronen said. "The rates in California are just as high as they are in Texas and Florida and other places that have seen really strong fundamental growth, and the challenges that investors and developers are facing today and are going to be facing in the near future are the same."
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