In a November 17th National Mortgage News article, Inside the 2023 Playbook for Real Estate Investor Financing, Anchor Loans CEO Andrew Pollock discusses the 2023 real estate market conditions that lie ahead for investors and private lenders. The article explores a range of topics related to the 2022 market slowdown, including fix-and-flip investors shifting to buy-and-hold for rental, credit availability for investment financing, "mom and pop" investors exiting the space and some smaller private lenders closing shop. Regarding the impact of the market slowdown on the private lending sector, Pollock shared his observations:
Smaller lenders with less capital are currently "having one heck of time" in the industry slowdown, according to Andrew Pollock, CEO of Anchor Loans, which provides private loans to investors and builders. "It's a competitive marketplace, both on rates, on leverage, and on just pure capitalization on liquidity," he said. "We're seeing a lot of regional players that we go head to head with in certain markets go away. They've gotten small. They've converted into being a brokerage firm or shut the doors," he said.
Pollock said he has seen emerging signs of the possible entry of new players into his sector, but warned that rules and policies are not easily transferable between consumer and business-purpose lending, and choppy waters may await. "The barriers to entry aren't that high. The barriers to success are very tall," he said.
Read the entire article Inside the 2023 Playbook for Real Estate Investor Financing at nationalmortgagenews.com.