How Are You Structuring Private Loans Right Now?

Question

With rates staying elevated and deals tighter, I’m curious how folks here are adjusting on the lending side.

A few questions I’ve been thinking about:

• -What LTVs are you comfortable with right now for fix-and-flip or value-add deals?
• -Are you seeing shorter loan terms or more extensions compared to previous years?
• -How are you pricing risk differently in 2025–2026?
• -Have borrower expectations shifted in your experience?

-What LTVs are you comfortable with right now for fix-and-flip or value-add deals?

-Are you seeing shorter loan terms or more extensions compared to previous years?

-How are you pricing risk differently in 2025–2026?

-Have borrower expectations shifted in your experience?

I’m especially interested in hearing real-world observations. what’s working, what’s not, and any lessons learned recently.

Looking forward to learning from the community and hearing different perspectives.

Thanks in advance for sharing.

Chris Seveney · Answer

Similar to what Erik said. Definitely requiring more skin in the game, doing a lot more diligence on the appraisals, reducing maximum loan sizes as well as reduced amounts given to one borrower in a set period of time.

The space is tightening for many, which typically leads to some new company that is run by genius Tech nerds To offer crazy rates and crazy leverage.

Thomas Jesse · Answer

From a lender’s perspective, the story in 2025–26 is mostly execution and underwriting risk. LTVs are tighter, interest-only periods shorter, and extensions usually need fresh equity or recap.

Deals that stumble aren’t usually the property itself, it’s absorption, construction execution, or gaps in the capital stack. Sponsors who anticipate that upfront tend to get through underwriting more smoothly.

Jake Yuskaitis · Answer

we still have programs that are 90/100 and even up to 100/100

sometimes we can do no appraisal.

Jake Yuskaitis · Answer

it's good for the right scenario

Erik Estrada · Answer

The main issues I am seeing now are private lenders looking at values a lot more closely. Seems like many are trying to cut value and force borrowers to have more skin in the game. Maybe it might be a coincidence, but this is what I am seeing now on my end.

How Are You Structuring Private Loans Right Now?

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