NPLA Conference Session Recap: The Evolving Private Lender Market — Best Practices and Market Potential

NPLA Conference, Austin, TX — October 17, 2023

Author: Tucker Wade, Senior Director of Legal and Compliance at GoDocs

The third panel session at the NPLA Conference in Austin today, titled “The Evolving Private Lender Market: Best Practices & Market Potential,” brought together industry experts to discuss the latest trends and insights in the private lending sector. The session featured a panel of distinguished specialists, including Eric Abramovich of Roc Capital, Alexis Agopian of A&S Capital, Mark Woodbridge of Builders Capital, Kevin Werner of Renovo Financial, Allen Shayanfekr of Sharestates, and Andrew Pollock of Anchor Loans.

Throughout the session, the panelists delved into critical topics offering insights on capital sources, loan performance, delinquencies, and evaluation metrics for multi-family properties:

  1. Capital Sources: The discussion kicked off with a focus on capital sources. Panelists emphasized the importance of continually seeking new sources of capital — and highlighted the significance of being proactive in scouting the next great capital source. Panelists encouraged originators to consider building strategic relationships alongside direct investments, which could potentially lead to future investment opportunities.

  2. Loan Performance: A key takeaway from the session was the importance of tracking loan performance. The panelists stressed that maintaining a strong loan performance record reflects the efforts to lower delinquencies and plays a crucial role in attracting future investors.

  3. Delinquencies: The discussion turned to the issue of delinquencies in the private lending market. The panel emphasized that delinquency rates are highly nuanced and depend on various factors, such as the property’s location and the foreclosure process in that state. For example, in states with non-judicial foreclosure processes like Texas, where a Deed of Trust (DOT) is used, delinquencies tend to be lower due to the ability of loan buyers to quickly exercise remedies without lengthy court proceedings.

  4. Multi-Family (MF) Properties: The discussion shifted to multi-family properties, where it was observed that appraisals often fall short of reflecting the true value of the property. This can negatively impact the origination process. The panelists suggested that Loan-to-Value (LTV) could be a more accurate metric and tool for evaluating multi-family property loans.

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The Evolving Private Lender Market panel session at the NPLA Conference offered attendees valuable insights into the evolving private lender market, best practices, and market potential. It’s essential for private lenders to adapt to changing market dynamics, remain vigilant in their capital-seeking efforts, and focus on building strong loan performance records to thrive in the ever-evolving private lending landscape.

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