Balance Sheet Private Lenders - Making Changes?

[Alex Breshears]

I'm seeing some cracks in markets across the country where days on MLS are increasing, showings are decreasing, and the ratio of asking price to list price is finally not +10% over asking. I personally don't think we headed for a major correction, but some markets I think might see some of it. As a lender, we are always trying to mitigate risk for the capital we lend out (because my definition of private lender is someone who is lending out their own capital, not selling it to the secondary market or using a line of credit for the business to fund loans). My definition of lender means we are in it for the full cycle of the loan, which could be 4 to 24 months! With all this uncertainty, I'd love to hear from other people who are lending their own capital to see what you may be doing in these changing times. Are you even changing anything? What risk are you trying to mitigate with those changes?