LOS ANGELES—Now that the market has generally recovered from the recession, novice investors are returning to the deal making table, according to speakers at RealShare Los Angeles' Inside the Capital Stacks panel. Moderated by Gary M. Tenzer, principal and managing director at George Smith Partners, the panel speakers, which included Kevin Miller, co-president and CEO of Thorofare Capital; Elizabeth Braman, chief production officer of ReadyCap Commercial; Pat Jackson, founder and CEO of Sabal Financial; T.R. Hazeirigg IV, president of Avatar Financial Group; and Stan Kafka, managing director of Partners Capital Solutions Inc., expressed concern that these “unseasoned people” could cause another bubble.

Overall, the panelists agreed that we have had steady but anemic growth. “There is good deal flow but nothing is taking off,” said Kafka. Hazeirigg attributed this to cautious institutional and private investors who see the recovering market, but still remember 2008. However, all of the panelists agreed that it is the inexperienced investors who disrupt the market by taking unmerited, high risks. Miller predicted that we are at the year 2005 from the last cycle.

However, it isn't past bankruptcy that is an issue. Most of these capital providers would lend to borrowers who have been through a bankruptcy, depending on the situation. Braman said, “As long as they handled the situation well and they are on their way back up, we would lend to someone with a past bankruptcy.”

Property type also plays a significant roll in lending. Hazeirigg said that his company rarely lends on land. “Land is difficult and often times the risk adjustment and return just isn't there,” he said on the panel.

On other panels at RealShare Los Angeles, however, disagreed with the negative assessment. Experts on the View from the Top panel explained that the pessimism in the marketplace isn't founded. Although the growth rate isn't groundbreaking, it is steady and here to stay.