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The commercial real estate market is going through one of its most significant shifts in decades. Rising interest rates, tighter lending standards, and changing investor expectations have created both uncertainty and opportunity across the industry. In this episode of the Next Level Income Podcast, I sit down with Jake Clopton, founder of Clopton Capital, to discuss how debt markets are evolving and what investors should be paying attention to right now.
Jake brings years of experience working with real estate owners and operators nationwide, helping clients secure debt and equity solutions in a rapidly changing environment. Throughout the conversation, he explains how today’s higher interest rate environment is impacting everything from underwriting standards to deal flow and investor confidence.
One of the major themes discussed in this episode is the dramatic change in borrowing costs over the past few years. Many commercial real estate investors became accustomed to historically low interest rates, which allowed deals to cash flow more easily and encouraged aggressive acquisitions. However, with rates rising significantly, the economics of many projects have changed. Jake explains that lenders are now placing greater emphasis on debt coverage ratios, sponsor strength, and conservative underwriting assumptions.
The discussion also explores how banks and private lenders are responding differently to current market conditions. Traditional banks are becoming increasingly cautious, especially with office and certain retail properties, while alternative lenders are stepping in to fill financing gaps. Jake shares insights into how borrowers can position themselves more effectively when seeking financing and why preparation and transparency matter more than ever.
Another key topic is opportunity. While some investors are sitting on the sidelines waiting for clarity, others are finding attractive acquisitions due to distressed sellers, refinancing pressure, and reduced competition. Jake explains that market dislocation often creates some of the best long term investment opportunities for disciplined operators who understand risk management and maintain strong relationships with lenders.
The episode also highlights the importance of adaptability in commercial real estate. Investors who can creatively structure deals, negotiate favorable terms, and remain patient may be able to capitalize on changing market dynamics. Jake discusses how different asset classes are performing, where lenders are still actively deploying capital, and why multifamily, industrial, and select niche assets continue to attract attention despite broader economic concerns.
For anyone involved in commercial real estate investing, lending, syndications, or development, this episode provides practical insights into how debt markets are shaping the industry today. Whether you are an experienced operator or someone looking to better understand the current environment, Jake offers a balanced perspective on both the risks and opportunities ahead.
Tune in to this episode of the Next Level Income Podcast to hear Jake Clopton break down the realities of commercial real estate financing, rising interest rates, and the strategies investors can use to navigate today’s evolving market with confidence.
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Christopher Larsen is the founder and Managing Partner of Next-Level Income. Since “retiring” after 18 years in the medical device industry he dedicates his time to helping others become financially independent through education and investment opportunities. Chris has been investing in and managing real estate for over 20 years.
While completing his degree in Biomechanical Engineering and M.B.A. in Finance at Virginia Tech, he bought his first single-family rental at age 21. Chris expanded into development, private-lending, buying distressed debt as well as commercial office, and ultimately syndicating multifamily properties. He began syndicating deals in 2016 and has been actively involved in over $500M of real estate acquisitions.
In addition to real estate, Chris has invested in equities, oil & gas, and small business lending, as well as being active in Venture South, one of the nation’s Top 10 Angel Investing groups. Chris lives with his wife and two boys (and Viszla, Lucy!) in Asheville, NC where he loves spending time with them in the outdoors and enjoying the food and culture that the region has to offer.
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