What’s Driving Private Lending Activity Right Now

As we continue to navigate a dynamic real estate environment, borrowers and brokers alike are asking: What types of projects are lenders actively funding right now? At TaliMar Financial, we’re seeing strong momentum in three key areas—each with specific qualities that are aligning with investor goals and lender appetite. Here’s what’s gaining traction and why:

1. Construction & ADU Projects

Accessory Dwelling Units (ADUs) and small residential construction projects continue to gain steam, especially when they’re permit-ready or near permit-ready. With cities like San Diego and Los Angeles pushing for increased housing density, borrowers with infill lots, underutilized land, or SFRs with ADU expansion potential are finding strong lending support.

We’re also funding bridge loans to acquire properties while plans are being finalized, allowing developers to secure land now and position themselves for a fast start once permits are issued. Timing is everything in this market—and if you have a viable project with forward momentum, lenders are paying attention.

What Lenders Like:

• Permit-ready or near permit-ready
• Strong exit strategy (sale or rental)
• Proven borrower experience
• Urban infill or high-demand residential areas

2. Bridge Loans for Acquisition, Refinance, or Recapitalization

Bridge loans remain a key tool in transitional real estate situations—especially when speed is critical. We’re seeing a surge in borrowers needing quick closes due to loan maturities, property acquisitions, or recapitalizations where fresh equity is required to complete a deal.

In many cases, borrowers are coming to us after delays or setbacks in traditional financing channels. Others are proactively refinancing out of maturing debt and using the opportunity to cash out for new investments or to shore up liquidity.

Ideal Bridge Loan Scenarios:

• Property purchase with short escrow
• Refinance of maturing or high-rate debt
• Equity release (cash-out refinance)
• Short-term hold before stabilization or sale

3. Traditional Fix & Flip Projects

Yes—fix and flip investing is still very much alive, especially for single-family homes and small multifamily assets in high-demand neighborhoods. We’re funding renovation projects where the borrower has a solid scope of work, realistic after-repair value (ARV), and the experience to execute efficiently.

What we’re not seeing succeed? Overly aggressive ARVs, underfunded budgets, or inexperienced borrowers in uncertain submarkets. Today’s winners are sharp on their numbers and focused on smart, targeted improvements.

What’s Working in Fix & Flip:

• Conservative purchase price
• Accurate and supported ARV
• Defined renovation scope
• Fast timelines with clear exit plan

Final Thoughts

In today’s lending environment, clarity, preparation, and speed are your competitive edge. Whether you’re building ADUs, navigating a refinance, or repositioning a distressed property, the most successful borrowers are those who come to the table ready—with a plan, supporting documentation, and a clear timeline.

If you’re a borrower or broker exploring financing for your next project, we’d be happy to talk through the options and help you identify the right solution for your scenario.

Disclosure: TaliMar Financial, Inc. dba TaliMar Financial, CA DRE License 01889802 / NMLS 337721. For information purposes only and is not a commitment to lend. Programs, rates, terms and conditions are subject to change at any time. Availability dependent upon approved credit and documentation, acceptable appraisal, and market conditions.