Deal Volumes Soar for Non-Bank Lending Outfits

Deal volumes are climbing quickly for non-bank and alternative lending sources, thanks to tightening credit standards of banks and the CMBS market. Money360 has recently achieved $1 billion in loans closed since its launch in 2014. The firm expects to achieve $2 billion in loans close—adding an additional $1 billion—next year, illustrating the increasing demand for alternative lending sources for commercial real estate.

“The tightening of credit by banks and the CMBS market has created significant opportunities for non-bank, alternative lenders like Money360,” Evan Gentry, CEO of Money360, tells GlobeSt.com. “We have been particularly successful because of our flexibility and ability to customize lending solutions to meet the needs of our borrowers.  In addition, our team comprises veteran industry underwriters across the U.S. who offer deep expertise in the commercial real estate sector and the communities in which we lend; our borrowers like the collaborative approach we take to underwriting to ensure strong standards and mutually beneficial results.”

Of course, the firm doesn’t solely credit the rising demand for alternative lending sources. While demand has increased, so has competition, and Money360 says that its strategy has helped them gain business and new clients. “This milestone is a testament to our experienced team of underwriters and our business model that emphasizes flexible solutions for borrowers,” says Gentry. “Since inception, we’ve remained committed to treating every client as an individual and ensuring they have a seamless, transparent and successful lending process, and that will never change. As we look to the future, we are committed to continued innovation of the lending process, whether that be introducing new technology that enables us to better connect with our brokers and borrowers, as our My360 platform offers, or rolling out new products that borrowers need for their unique projects.”

Next year, Money360 expects similar activity in the alternative markets, despite the length of the cycle. “We continue to see very strong demand and believe early 2019 will be similar to 2018,” adds Gentry. “Even as properties values level off and the bull run comes to an end, we still expect high transactional volume and lending activity in the next year or two as property owners seek to take profits.”

This significantly milestone also reveals a prior void in the market for lending options. “We attribute much of our success to making the sector a more accessible asset class by offering ease of close and transparency in the loan process,” explains Gentry. “For decades, this industry has seen a lack of action to address evolving borrower and broker needs. “We want to provide our clients with innovative and customizable solutions and continue to look for ways to improve our processes every day. In 2019, we plan to continue our upward trajectory and set ourselves on a path to hit the next billion dollars in loans closed.”