Banks Don't Want You to Know About This Man

**No Vacancy with Taylor Avakian**

**Episode Title:** Banks Don't Want You to Know About This Man

**Guest:** Greg Hebner, Managing Director and Majority Owner, Arixa Capital

**Host:** Taylor Avakian

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**Transcript Summary**

**[00:00] Taylor Avakian:** Welcome back to No Vacancy, everyone. Today, I am absolutely thrilled to have Greg Hebner, Managing Director and majority owner of Arixa Capital, on the show. Greg, thanks for joining us.

**[00:08] Greg Hebner:** Taylor, it's great to be here. Thanks for having me.

**[00:10] Taylor Avakian:** Greg, Arixa Capital, formerly Erickson, has quite the origin story, especially coming out of the 2008 financial crisis. Can you walk us through how Arixa came to be and what motivated you to jump into the distressed lending space during such a turbulent time?

**[00:25] Greg Hebner:** Absolutely. It's a story that really defines who we are today. Post-2008, the traditional banking system essentially froze up. There was a massive vacuum for capital, especially for real estate investors who were looking to acquire distressed assets, fix them up, and put them back into the market. We saw an immense opportunity there. Initially, we started as Erickson, focusing on providing short-term, asset-backed loans to experienced real estate operators who were buying foreclosures, REOs, and other distressed properties. It was a high-risk, high-reward environment, but by focusing on strong assets and even stronger sponsors, we were able to build a solid foundation. The demand was just incredible, and it quickly became clear that private capital was essential to help restart the real estate engine.

**[01:15] Taylor Avakian:** That's fascinating. It really speaks to the entrepreneurial spirit to step into that void. Fast forward to today, Arixa Capital is a massive player. Can you give us a sense of your current scale? I understand you're managing billions in assets.

**[01:28] Greg Hebner:** Yes, it's been quite a journey. Today, Arixa Capital manages somewhere between $2.3 to $2.5 billion in assets. On an annual basis, we're originating nearly $1.5 billion in loans across 22 states. We've grown significantly from those early days, expanding our product offerings and our geographic footprint, but always staying true to our core principles of being a reliable capital partner.

**[01:55] Taylor Avakian:** That's incredible growth. For our audience, many of whom are familiar with traditional bank lending, what exactly is private capital, and how does Arixa Capital differentiate itself from those traditional banks?

**[02:08] Greg Hebner:** That's a crucial distinction. Traditional banks operate under a very different regulatory framework. They're typically slower, more bureaucratic, and have stricter lending criteria, especially for projects that might be considered non-conforming or have a value-add component. Private capital, like Arixa, is much more nimble. We're not regulated in the same way, which allows us to be more flexible, faster, and often more creative in our loan structures. We're essentially filling the gaps that banks can't or won't serve. Our capital comes from institutional investors, high-net-worth individuals, and our own balance sheet, rather than depositor funds, which gives us that flexibility. We can close loans in days or weeks, not months, which is critical for real estate investors who need to move quickly on opportunities.

**[02:58] Taylor Avakian:** So, it's really about speed, flexibility, and catering to specific needs that banks can't meet. You mentioned institutional investors. Can you elaborate on your fund structures and the types of partnerships you've forged, like with Oaktree Capital, and even the launch of mortgage securitizations? That sounds like a sophisticated play.