The Paper Trail

In this episode of The Paper Trail, host Chris Seveney breaks down the “double squeeze” currently pressuring real estate construction from two directions at once: rising tariffs on building materials and a tightening construction labor market. Drawing from nearly 30 years of experience in construction and development, Chris explains how these forces are changing the economics of new development and why passive investors should pay close attention.Episode Timeline00:00 Tariffs and Labor Crunch01:44 Tariffs Raise Material Costs04:00 Labor Shortage Hits Timelines07:21 Double Squeeze on Supply08:57 Market Examples: DC vs Florida10:27 Passive Investor Checklist13:02 Budgeting and Capital Stack14:36 Wrap Up and Next EpisodeLearn MoreTo learn more about how 7e approaches note investing, underwriting, and market strategy, visit:https://7einvestments.comThis content is for informational purposes only and is not intended as investment advice.

In this episode of the Paper Trail Podcast, Chris Seveney breaks down how real estate syndication returns change once taxes, fees, and deal structure are fully accounted for.Rather than focusing on headline IRR, the discussion centers on what investors actually keep after understanding their position in the capital stack, the tax implications of debt versus equity, and the impact of layered fee structures.Chris also highlights retirement-account pitfalls such as UBIT/UDFI in leveraged non-corporate deals, multi-state filing costs for K-1 investors, and the importance of using a CPA experienced with real estate and passive loss rules, urging investors to ask sponsors detailed structural questions before investing.00:00 Welcome and Overview01:21 Capital Stack Basics02:24 Debt vs Equity Taxes04:24 Gross vs Net Returns06:51 K-1s Depreciation Recapture10:50 Syndication Fee Breakdown14:48 Fees vs Waterfalls Promote19:07 Sponsors Cant Give Tax Advice22:07 IRA Investing UBIT Trap24:50 Multi-State Filing Costs28:33 Choosing the Right CPA30:42 Wrap-Up Key Questions34:10 Final Thanks and Sign-Off

In this episode of the Paper Trail Podcast, Chris Seveney takes a practical look at how AI is shaping real estate and mortgage note investing today.Moving past the hype, he outlines where AI is already improving underwriting and valuation, where it may be narrowing investor advantage, and what structural risks are often overlooked as these tools become more embedded in the market.Episode Timeline00:00 AI Wake-Up Call 00:56 The Good: Where AI Is Already Adding Value 01:53 Faster Property Valuations 02:42 Smarter Borrower Risk Assessment 03:19 The Bad: Shrinking Information Advantage 05:20 Execution Becomes the Edge 06:03 The Overlooked Risk: Chip Dependency 06:56 Taiwan and Supply Chain Exposure 09:17 Avoiding Over-Reliance on AI 09:49 Why Note Investing Remains Durable 10:58 PropTech vs. Fundamental Models 12:08 Final Takeaways and Next StepsLearn MoreTo learn more about how 7e approaches note investing, underwriting, and market strategy, visit: https://7einvestments.comThis content is for informational purposes only and is not intended as investment advice.

In this new episode of the Paper Trail Podcast, Chris Seveney breaks down the growing stress in private credit and draws a clear distinction between corporate direct lending and asset-backed mortgage note investing.Chris Seveney walks through what is actually happening beneath the headlines, why parts of the market are showing strain, and how structural differences in collateral, underwriting, and resolution paths can lead to very different outcomes.Episode Timeline00:00 Overview of recent developments in private credit markets 01:10 Definition and structure of private credit 03:03 Factors contributing to current market stress 04:52 Structural differences in note investing approaches 06:20 Role of asset-backed collateral in credit strategies 09:12 Observations on tech-enabled real estate lender activity 13:24 Considerations when evaluating loan pools 14:18 Summary of key discussion points 16:09 Additional resources and closing remarks

The easy part of a credit cycle is when rising home prices hide mistakes. That phase appears to be ending.In this episode of the Paper Trail podcast, Chris Seveney, CEO of 7e Investments, shares a grounded view of where the mortgage note market sits today and how his firm is adjusting its strategy for 2026. Drawing on direct asset management experience across performing and non-performing loans, Chris explains why today’s environment demands tighter underwriting, deeper operational oversight, and more disciplined execution.While housing stress is not yet broad across the market, it is becoming more concentrated and visible. Liquidity remains available, but it is increasingly selective. Lenders are tightening guidelines, appraisal scrutiny is rising, and the margin for underwriting mistakes is shrinking.For note investors, this shift matters. In prior years, rapid home price appreciation often covered operational errors. Today, asset performance depends far more on borrower behavior, collateral quality, and execution during workouts.Chris also discusses how borrower options are changing. With refinancing pathways narrowing and affordability pressures rising, some borrowers are turning to bankruptcy filings earlier in the process, reducing the number of quick resolutions that investors have become accustomed to. That shift places greater emphasis on hands-on asset management and flexible resolution strategies.A key theme throughout the discussion is time risk. In judicial foreclosure states especially, delays can compound legal costs, extend timelines, and significantly alter expected outcomes. Chris explains why relying solely on foreclosure as a strategy can expose investors to unnecessary risk and why maintaining multiple resolution paths is critical.The conversation closes with a look inside how 7e is adapting operationally, including tighter collateral controls, stronger vendor oversight, and underwriting models that reflect real historical timelines rather than optimistic projections.For investors navigating the current credit environment, the message is straightforward: opportunity still exists, but success increasingly depends on discipline, patience, and operational execution.Topics Covered00:00 – Welcome and episode introduction01:34 – Where we are in the mortgage and housing cycle02:12 – Market stress, liquidity conditions, and lending standards03:35 – Changes in borrower behavior and workout dynamics04:52 – Why hands-on asset management matters more now05:47 – Pricing discipline and evaluating new deals07:21 – Time as the biggest risk variable in note investing10:25 – Common mistakes investors make during this phase of the cycle13:01 – How 7e is adjusting its 2026 strategy13:51 – Fraud risk, collateral control, and documentation verification16:05 – What investors should reevaluate in today’s market18:00 – Why discipline and process matter most19:21 – Final thoughts and closing