Quote from @Mike Tamulevich:
With interest rates climbing, we've definitely had to adjust how we approach funding strategies. Many investors are feeling the squeeze from traditional lenders, so it's no surprise that more are turning to private money lenders to access capital faster. Private lenders are becoming a go-to option because they’re able to close deals quickly without all the hoops that banks make you jump through. Sure, the rates might be a bit higher, but for investors who need to move fast—especially in this market—the flexibility is worth it.
Another trend we’ve seen is a shift in focus from appreciation to cash flow. Investors are being more cautious and looking for properties that can generate strong rental income right away to help cover the higher financing costs. Some are even getting creative with their deals, using strategies like seller financing or joint ventures to reduce their dependence on traditional loans.
It’s definitely a challenging environment, but with the right strategy, there are still plenty of opportunities out there.
Thanks for sharing your insights! I completely agree—private money lending is becoming a key strategy in this climate, especially with its flexibility and speed compared to traditional loans. When it comes to higher interest rates, how are you advising investors to balance that with their overall return on investment? Are you seeing any specific creative financing strategies working particularly well right now, like seller financing or joint ventures?
Also, with the shift toward focusing on cash flow, are there any specific markets or types of properties you’re seeing that perform well, despite the challenges? I’d love to hear more about how you’re navigating these changes and finding opportunities in this evolving market.
