Funding
Beware the Shiny New Penny ADVANCEMENTS IN THE LENDING SPACE MEAN CHANGE FOR REAL ESTATE INVESTORS, BUT DON’T ABANDON YOUR CORE BUSINESS.
ALEX KADDAH
P rivate lending has reshaped the financial landscape by offering new opportunities to borrowers that traditional lenders simply cannot. One key factor that continues to drive the industry forward is technology. From the industrial revolution to the digital revolution to the dot-com boom and today’s AI and Big Data era, technology has consistently driven transformation. Regardless of the industry or sector, technology enhances business processes, scalability, and long-term viability. This holds true not only for individual companies but also for the entire industry. As private lending continues to evolve, innovation remains at the heart of its transformation, driving greater efficiency, transparency, and growth in the market.
Over 70% of the industry still revolves around RTL loans, and this will remain the main product ...”
innovation simply offers an outlet for retail transition loans (RTL) after they move out of the rehab phase and into permanent long-term rental solutions. Over 70% of the industry still revolves around RTL loans, and this will remain the main product because the industry was built on it. Innovation should spice up your recipe, not replace the main ingredient. Our industry is alive
the entrance of new players. As more institutional capital flows into the space, it has had a direct impact on lenders. Wall Street money comes with expectations, primarily that loans meet specific standards so they can be packaged and sold when they reach a lender’s book.
NEW CAPITAL, NEW STANDARDS
However, this shouldn’t be seen as a scare tactic or a call to abandon core business practices. Rather,
A notable market trend over the past year has been the rise of DSCR products and
28 | think realty magazine :: july - august 2025
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