Non-bank real estate lending has become much more prominent in the wake of the financial crisis as banks pulled back dramatically from this asset class, which played such a large role in causing the crisis. With the U.S. government and regulators injecting hundreds of billions of dollars to avoid a collapse of the financial system, banks and elected officials were understandably cautious about seeing banks return to anything but the safest and most predictable types of real estate loans.
In the 10 years since the crisis began, many non-bank lenders have grown into substantial businesses. Their level of professionalism ranges widely. What about the next 10 years? This article makes 10 predictions about where our industry is going.
Jan Brzeski serves as managing partner and chief investment officer with Arixa Capital Advisors LLC, a California-based private real estate lending and fund management firm.