Private Money Lending in 2025: What’s Working & What’s Changing?

[Victoria OHare]

Hey BP community,

With banks tightening their criteria and private credit assets continuing to grow, I’ve been digging into how private money lending is evolving — especially in our real-estate investing space. According to recent data, the private credit market is expected to nearly double by the end of the decade, and private lenders are increasingly stepping in where traditional banks won’t. `

Here are some things I’m wondering:

• What loan structures are you seeing more often now (shorter terms, higher yields, bridge & transitional financings)? 

• How much importance are you placing on speed of funding and flexibility, vs. yield and underwriting standards? An article noted investors paying 10-12%+ for private money because of how quick and flexible it is. 

• For lenders: what are you doing differently now in terms of collateral, terms, or borrower selection? For borrowers: how are you sourcing private money and what terms are you comfortable with?

• With changes in technology and underwriting, are you seeing shifts in risk / return profiles? Some reports say tech and automation are changing the private lending space. 

Would love to hear from both private lenders and investors who borrow or use private money — what are you seeing, and how are you adapting?