MPA MAGAZINE
With traditional banks stuck in prolonged approval cycles and growing risk aversion, borrowers are turning to private lenders who can move quickly – and think creatively. For real estate investors caught in a tightening market, that shift is more than a trend. It’s a survival strategy.
Scott Lurie, founder of Milwaukee-based private lending firm F Street, said demand is surging – and not just in volume. “Our liquidity has never been stronger, and our demand has never been higher,” Lurie said. “We’re seeing more applications and larger loan sizes across the board.”
As equity becomes harder to raise and construction costs push traditional financing further out of reach, borrowers are adjusting their playbooks. “People are getting a little bit more crafty in their ways of getting through the closing table,” Lurie explained. “Whether that’s through construction, purchase price, or acquisition costs.”
Banks, meanwhile, are pulling back from deals they once routinely funded. Applications that might have passed a year ago are now getting kicked back due to concerns around multifamily assets, inflation, or tariffs. “Those banks are just closed for business right now,” Lurie said. “Or they’re not doing that, or they’re concerned.”
