Aside from hard lessons learned and increasing requirements that all parties have "skin in the game," evolutions in technology and an increasing utilization of third-party due diligence firms, who are staffing up accordingly, certainly help solve the challenges of evaluating a deal, and for a relatively finite number of hours. Many lenders in our space—including Revere—are structured such that the origination team retains a portion of ownership in every transaction— both in job description as an employee of the firm and monetarily—which is intentionally designed to cause us to best serve the fiduciary interests of our investors. Therefore, it is paramount that our due diligence is rigorous, thorough, thoughtful and accurate.

GlobeSt.com: Are borrowers putting together comprehensive and understandable acquisition plans in their loan applications? And, how do banks fit into the current environment for financing commercial real estate loans?

Bryan: I suspect that a buyers' lack of a concise and clear business plan will be the exception rather than the rule and represent a small number of loan applicants because there is ample smart equity chasing opportunities right now. However, I do believe that banks will be forced to pursue transactions more selectively and those loans will have more covenants tied to recourse than before.

The whisper consensus is that tightening comes from regulatory authorities within the next two to three years. Implementation of Basel III and High Volatility Commercial Real Estate (HVCRE) regulations appear to be impacting the banks' lending practices but still there seems to be no shortage of banks competing with private debt at the regional and local levels.