Have you seen the recent article in Bloomberg News: Easy-Money Loans Backfire on Rookies in the Home Flipping Market. Private credit funds helped fuel a boom in risky real estate deals—until the market turned. What does this mean for flipping? Why am I staying old school?
Wall street gets into the private lending game
It is amazing. In every single cycle there is a new twist in financing that ultimately ends badly. The most recent iteration is wall street backing loans to investors up to 95% loan to value and much of this on spec construction. As you can imagine as soon as the market slowed, defaults started piling up.
Glen Weinberg, owner Fairview Lending
Quoted in Bloomberg
Here is what I had to say regarding the influx of easy money into the private lending space:
But Glen Weinberg, an old-school hard-money lender based in Steamboat Springs, Colorado, says he’s sticking with the conservative underwriting that’s kept him in business for more than two decades. His company, Fairview Commercial Lending, requires down payments of 40% of the purchase price and charges an almost 13% annual rate. “You can increase returns when the world is good, but the inverse is also true,” Weinberg says. “As soon as the market turns and you’re using that much leverage, your losses are exponentially amplified.”
I plan on keeping it “old school” and making low leverage loans to help borrowers bridge the gap. Please keep me in mind for your hard money/private money needs in GA, CO, and FL.
Here is a link to the full article: https://www.bloomberg.com/news/features/2026-02-08/private-credit-loans-are-driving-foreclosures-in-the-home-flipping-market?srnd=homepage-americas
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends 😊. I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games). Learn how to find a reputable hard money lender and why Fairview is the best hard money lender for investors.
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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