As we enter 2024, much has been made of how private lenders currently have the market to themselves now that regulated lenders are on the sidelines shoring up their balance sheets. But what to make of it? We’ve not seen similar circumstances since the Great Recession—but the aftermath should serve as a critical reminder to leverage what we’ve learned to navigate the current maelstrom. A perfect storm of quickly rising interest rates, falling commercial property values, and an uncertain economy is effectively keeping national and community banks off the playing field, leaving private lenders ‘drinking through a firehose’ of opportunities. A great position to be, but caution must be the operative word in taking advantage of the situation lest they find themselves in risky, uncharted waters.

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