In this interview hosted by Toby of Global Integrity, industry experts Jonathan Allen (three years in hard‑money lending) and Kobe McDonald (nearly 20 years in people management and sales) discuss the U.S. real‑estate market outlook for 2024 and how investors can best position themselves. They note that interest rates have peaked and are expected to stabilize with modest declines over the next 24‑36 months, creating a fertile environment for value‑add residential projects and DSCR refinancing. The guests advise investors to focus on growth‑area properties, apply a 3‑5% valuation buffer, and not to wait for perfect market timing. Experience is helpful but not required; Global Integrity offers hands‑on guidance, acting as a partner rather than a pure lender. Kobe emphasizes the firm’s partnership‑first philosophy, while Jonathan highlights the personal, relationship‑driven service that differentiates Global Integrity from metric‑focused lenders. The conversation ends with optimism about 2024, citing recent recognition as a fast‑growing hard‑money lender and a commitment to aggressive yet prudent lending standards.
Chapters
Expert.
I don't know. You got boots on, that's why.
Hey everybody, this is Toby with Global Interity. Hey, we're here today with Jonathan and Kobe. We're going to talk to them today about the temperature of the market. We've had a lot of disruption over the last couple of years. And so these two gentlemen are experts in the field. They've got their thumb on the pulse. So we really want to talk to them about what's going on, what they see is moving into the future. We got 2024 coming right around the corner. And we want everybody to understand what they need to do to get prepared and what to expect. So I've got the two best guys in the company here. We're going to chat with them, going to get some kind of feedback from them on what's going on, what they see, and how they can help you grow your book of business. So first and foremost, won't you gentlemen introduce yourself? Let's start with you, Jonathan.
Uh, Jonathan Allen. Um, been in this space for about 3 years at this point. And, um, Yeah, that's me.
Kobe?
Kobe McDonald. I've been in people management and sales consultation for almost 20 years.
Outstanding, outstanding. So let's talk about Global Integrity. We know that Global Integrity is a direct hard money lender nationwide. You guys work with clients throughout the whole United States. You work with individuals that are looking to do either value-add projects on residential properties or stabilize into DSCR. Um, so let's start with you, Jonathan. What's going on in the market, man? What are you, what are you hearing out there in the streets?
Uh, I'm hearing that rates are going down, but I'm also hearing that the industry as a whole is kind of leveling out, at least here in Dallas.
Yeah.
Um, and what I'm seeing more so are a lot of opportunities for value-add that are coming across.
Yes.
So I'm thinking that's where the direction is headed as we go into 2024. But I'm looking to see more of those DSCR refis come on as well. So that's what I'm seeing.
That's what you're seeing in the marketplace. And we're kind of, you know, we're talking about, you know, COVID came, you know, 2020, we had COVID coming out of that. There was a lot of momentum and synergy within the industry. And then in 2022, the Fed raised interest rates like at skyrocketing speed, you know, and now they're stabilizing, leveled off. What are you hearing about the rates and how that's being perceived by the clients?
So what I tell my clients at least is, is don't expect, you know, COVID rates. Like, I wouldn't expect it to get down that aggressive, but, you know, we might see a drop in the next, you know, 24 to 36 months, but nothing significant like we've seen in the past. So, you know, really pouncing on the opportunities that you see as they come will probably be the best metric for you. But I'm thinking that they're probably going to drop a few percentage points, but they'll probably stay pretty stable.
Okay.
So like in the early 2000s.
And do you think that your clientele are in tune with that, or you think they're still got their head buried in the sand like they've had for the last 12 months?
You know, some have their head buried in the sand and some, they're able to pivot with the market and they just want to do deals. Want to make it happen. Those are my favorites, actually.
Great, great, great. Kobe, what are you hearing out there in the streets?
Uh, exactly what he said.
Yeah.
You know, I think interest rates after this next election are going to go down a little bit from what we've seen, but I think we'll also see a decrease in the real estate market as far as home values, and then they'll kind of go back up. Yeah, we're seeing an evaluation decline right now, but then they'll steadily, you know, start ramping back up at a normal pace, unlike the huge spike that we had. Yeah, more natural organic rate.
Good. So as an investor, what should I, what should I be on the lookout for 2024? If I'm, if I'm calling Global Integrity and I'm looking to get into the space, What's your advice for me?
Uh, I would— that depends on your strategy. Um, but I would say if you're looking for value-add, I would say stick close to, you know, growing areas, um, places where they're looking to do some, you know, rehabilitation to communities. Those are always my favorite areas to look.
Okay.
Um, and I would just say make sure when it comes to your evaluations Maybe don't go for the top of the market in whatever market that might be or that neighborhood. I would say maybe give it a, I don't know, a 3 to 5% valuation deduction just so we can add in that level of error when it comes to—
A little buffer.
Yeah, when evaluations come back since they are coming back a little bit lower.
Yep, that's great advice, great advice. Do I need to be experienced? If I'm coming on board, do I need to have a ton of experience to work with you guys?
Your rate will be a little bit better, your interest rate will be a little bit better if you've got more experience. But we love working with newbies as well and helping them to, you know, establish a portfolio and grow it and profit.
Do I need to have a coach, or do I need to have somebody to kind of guide and direct me, or is this something you guys can do on your behalf?
So with our experience with doing deals, we can help you to give you an idea of what it looks like from from our aspect of it and what we see successful investors do. So you, you will have that guidance and, and, you know, consultancy when you come to us. But, uh, I would say for your first one, probably the safest bet is to always get a partner.
Okay.
Um, especially if you got somebody that you can trust that's been there and done it before. It always can, you know, help on that first one. Um, but you don't have to have experience. We can walk you through the whole process, the application, the evaluation, Just make sure that you got your numbers on point, and then yeah, hopefully we can do a good deal.
So let me ask you this, and either one of you can answer. You know, what sets you apart from anybody else? If I'm a new client calling around and I'm going through Google search or whatever and I see Global Trade pop up, what's going to separate you from all the other people I talk to?
Well, we want to partner with with you. As I mentioned, we want to get elbow to elbow, arm to arm with you and walk you through the project. Our goal is to make you profitable. And if the deal is not viable, if it's a deal that— obviously we want to be able to fund any and all deals that we can, but at the end of the day, we're not going to fund bad deals. We want to fund good deals that are good for you so that you'll come back. Because it's not about one deal for us, it's about an ongoing partnership. So we want to only fund good viable deals so that you're successful. That's what separates us from everyone else is that we're not just chasing the profit, we're chasing the partnership.
Outstanding. What do you, uh, do you want to add to that, John?
Yeah, yeah, just to piggyback on him, I would say it's just, just a, a personal touch, right? Like you call a lot of places, you just experience that it's all about business It's all about the metrics and they're in it just for a numbers-based conversation. And we don't do that over here. It's more of relationship-based. So not only do you get a lender, but you also get a silent partner in a way because we're going to help you through the deal. Like if we think that the deal is bad, we're going to tell you where the problem areas are. As opposed to other lenders where they just, they'll just take it at face value, submit it through. If it gets declined, that's on you. But I want to save you that time. So yeah, you get a partner instead of just a, uh, a lender.
What does the future look like, uh, for 2024 for Global?
I think it's up from here. Yeah, I think it's up from here. There's a lot of opportunity. I think the, uh, the market is coming back around, and as long as we stay aggressive in our lending standards, I mean, I don't see why 2024 could be the best year we And, um, how do you perceive that being translated for me as a client?
Ink Magazine, to just add to what he said, Ink Magazine recently had us as one of the fastest growing, you know, hard money lenders in the company, or in the country. And I think that's a testament to our people and to our mission and what we're able to do for our clients. And, uh, the future is bright.
Good, good, great. That's it, that's it, that's it. It's that easy. If you aren't doing that once or twice a week, you're hurting yourself. I'm telling you, I can't preach this loud enough. You do this with anybody, you get on a Zoom
