· One of Australia’s most experienced property appraisers, Giamol Pasin, has joined AltX as Head of Property Risk.
· Giamol believes that experience is the key to an accurate assessment of real estate risks, including a thorough understanding of real estate market cycles and people.
· AltX’s internal credit, risk and construction teams work together to understand what will make a deal work – and can quickly make more accurate decisions on behalf of private debt investors.
When Giamol Pasin started partnering with AltX, he quickly realized that his review business shared the same goal as the investment platform: to help clients avoid losing money on investments. real estate. A decade (and many ratings) later, he joined the AltX team as Head of Real Estate Risk.
We asked Giamol to share his take on real estate valuations today and the secret to managing risk well.
Q. You have spent over 30 years working in real estate risk and appraisal. What brought you to work in this field and what are you still passionate about it?
I grew up on a farm near Griffith and have always had a very practical sense of the land. Today, whether it is a building plot or a prestigious house, I see its potential realistically. And that largely explains its value.
After all this time, I enjoy looking at the property and figuring out what makes it work. I think that’s the value I add.
Q. How did you see things changing? What is fundamentally different about the way we do assessments today?
When I started, reports were handwritten. We developed and printed photos for the back of a report and had to go to the land titles office to ask for details.
The process is still the same today, but four to five times faster. We can explore asset details in seconds, for example. But the amount of analysis we do is much more granular, and customers expect that. So the effort and work required for an evaluation report has probably increased four or five times as well.
I think evaluation has always been a bit of science and a bit of magic. We have so many other tools at our disposal for analysis, but no one expected the markets to move the way they have in recent years. I think it all depends on how people interpret the information they have. And we certainly see differences of opinion.
Q. So what is the secret ingredient to getting a good review?
In a word, experience. I’ve worked through several real estate cycles, starting in 1992 when the market was down and interest rates peaked at around 17%. I think you have to go through a few cycles to figure out what could and could happen. And you also need to know the areas, know the people behind a development project, and know what the returns and expenses will be. I think most trainee evaluators are good at setting up feasibility, but the evaluation is not as simple as running a spreadsheet.
Q. After working with Westpac and then running your own valuation firm, what prompted you to join AltX?
I was running CivicMJD Valuations when I first met AltX co-founders Nick Raphaely and Steve Beinart. They had just launched AltX and I could see they had a different approach. Nick told me he didn’t want to lose anyone’s money. And that’s what I want too – my business has successfully completed over 14,000 appraisals, both commercial and residential, and never had a problem.
I’ve been really impressed with how Nick and Steve have grown their business with this constant focus on preserving their investors’ capital. So when I sold my business last year, I thought I could add value in a role that would help them continue to grow.
For example, I can help integrate an effective review process from my banking and valuation experience. We need to maintain speed, be able to quickly review offers and know if they are working or not. Basically, to give third-party ratings the sniff test – because there can be so much time wasted looking at things that will never add up.
Q. Is there anything about real estate risk and valuations that surprises people?
Most people don’t understand what an appraiser actually does. There are so many things that happen before or after an appraiser inspects a property – they can work with quantity surveyors to understand development feasibility, review zoning title guidelines, sales contracts and legal aspects of location.
And the general public probably perceives appraisers as conservative, but that’s because most people think their property is worth more than it is!
Q. How would you describe the current real estate risk landscape? What do you expect to see in the coming year?
A lot of factors are starting to come into play. Inflation will rise, commodity prices will rise, and the RBA will be forced to raise interest rates. In the short term, this can create problems – the ability to repay mortgages will likely change.
I think we are seeing a generational shift with a very active downsizing market, and that will support prices in the “lifestyle” suburbs. But I certainly wouldn’t expect a residential property to go up another 30% this year.
Q. Finally, what should private debt investors know about AltX’s due diligence on real estate risks?
I think AltX does an amazing job with this because they built the internal experience from the inside out. The construction team, for example, understands this industry better than most people I’ve met. So they really know how to mitigate that construction risk. And the credit team is also deeply involved in the process – they add a lot of value and are always available to discuss concerns.
My goal is to bring everyone to the table for every transaction – risk, credit and construction teams. Because AltX’s proactive and collaborative approach is quite different from the siled teams you see at large banks. And I think that generates a solid result – especially for more complex transactions – and a faster and more accurate decision for investors.
To be honest, working together has always been a big part of how I do things. Family has always been so important to me, and I believe people work best when they feel like they’re part of something.
“My goal is to bring everyone to the table for every transaction – risk, credit and construction teams.”
Giamol Pasin, AltX Head of Real Estate Risk
AltX is a market-leading alternative investment platform. Founded in 2012 and based in Sydney, AltX provides tailored access to alternative income-generating products that have traditionally been inaccessible to individual investors. AltX has funded over $2 billion in transactions since its inception, with no loss of capital for investors.
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