Rates have been elevated for 18+ months now and I'm seeing real changes in borrower behavior and lender appetite. Some observations: - Fix and flip volume is down about 30% from 2022 peak in my market - DSCR loan demand is actually up (investors holding rather than flipping) - Bridge loan terms are getting shorter (lenders want 12-month max vs 18-24 months before) - More borrowers are asking about rate buydowns How are others adapting? Are you shifting your deal mix? Targeting different borrower profiles?
With the Fed signaling possible rate cuts later this year, I'm trying to figure out how to position my pipeline. Do I push borrowers toward longer-term bridge loans now (betting rates come down and they can refi into permanent financing)? Or do I keep recommending shorter terms and not try to time the market?
Fed has been signaling cuts but keeps pushing the timeline. When rates actually drop, what happens to the private lending market? Do bridge loan rates drop proportionally? Does deal flow increase? Trying to plan ahead.
I'm seeing a lot of investors pivot to secondary and tertiary markets because primary markets are too expensive. But I'm also seeing some of those smaller markets soften. Is this a real opportunity or are investors chasing yield into risky territory?
Looking to expand my geographic focus beyond my home market (Chicago). Curious where others are seeing the most activity and opportunity. I'm particularly interested in markets with strong rental demand and realistic fix-and-flip margins.