Published Mar 22, 2019 5:19:00 PM by Paul Oberschneider
A New Wave of Change in Alternative Lending
Real estate development is a complicated business even in good times. Anyone who's been on the development journey knows this, and probably has the scars to prove it.
Over the past few years, traditional lenders who have built relationships with local developers, retreated from the market and that gave an opportunity for alternative lenders to fill the gap. The main problem was these lenders were more driven by getting capital out the door and generating fees, than they were about the underlying loans they were underwriting. Development lending went up and it was happy days for everyone.
Published Mar 19, 2019 5:18:00 PM by Paul Oberschneider
With KKR recently teaming up with an alternative SME development lender, and Barclays' announcement to launch a £1bn fund with Homes England, a new national agency designed to combat the housing crises by delivering homes the county needs, the alternative lending market is rapidly moving it up a notch. There is even talk that Handelsbanken, the Swedish lender, is considering opening up the taps for UK SME lending, and so are a few other banks through special joint ventures. It appears that the early pioneers of P2P proved that the concept of alternative lending worked, followed more recently by the challenger banks. Now that the model is proven, a more institutional type of alternative lender is slowly developing.
Published Mar 18, 2019 5:17:00 PM by Paul Oberschneider
The Democratisation of Investing
The term ‘Democratisation of Investing’ is a mentality shift full stop. At it’s core it's an endogenous process whereby the investment world is being shifted internally, making finance and investing in many asset classes including real estate finance, more accessible to anyone for anyone with some level of discretionary capital to participate in industries that have long been slow and traditional. It is now easier than ever to become an investor, or a provider of capital especially for those with limited disposable income. This mentality shift is being moved by three fundamental dynamics but equally carries a warning on the label:
Published Mar 17, 2019 5:17:00 PM by Paul Oberschneider
Latest Construction figures do little to quell fears on Housing!
The latest official figures show a continuing rise in the value of new construction work over the course of 2017 to the highest level on record to date. While the increase was driven largely by private sector growth, equating to approximately three-quarters of all new work, the numbers have done little to quell rising panic about the current state of the UK housing crisis.