Introduction
As summer is almost here, PPR Capital Management team members have been busy attending real estate-related industry events across the country to stay up to date on the latest market trends affecting private lending and commercial real estate.
So far this season, our team has already had the opportunity to attend several industry conferences; in addition to the 7th Annual NPL, Notes & Default Servicing Forum (East) in Orlando, FL and the Car Wash Show in Nashville, TN which we covered in previous articles, we also attended the NPLA Conference in Miami, FL, and the Geraci 2024 Innovate Conference in Newport Beach, CA. Below are some highlights and key takeaways from each event.
NPLA Conference – Miami
The National Private Lenders Association (NPLA) is a trade organization representing private lenders, capital providers and service providers dealing in real estate transactions. NPLA often hosts events, conferences and networking opportunities for members involved in private lending, note buying and other related financial services. Here are some takeaways from their spring event in Miami:
- Toorak Capital Partners completed the first-ever rated securitization in the Bridge loan industry, which opens the door for better pricing from loan aggregators since they will also have more favorable financing upon exit.
- Larger loan aggregators are changing buy boxes, shifting to a more conservative lending model with lower loan-to-value (LTV) ratios and after-repair values (ARV).
- The conference keynote, Lesley Deuth of John Burns Research & Consulting, covered macroeconomic trends and current housing market conditions, which are giving off mixed signals, the future of interest rates and how demographic shifts affect various markets.
- NPLA’s educational information on investor rehab, multifamily lending, ground-up construction and small-balance commercial real estate loans helps keep the PPR team up-to-speed about the latest industry trends.
Geraci Innovate 2024 Conference
Each April, Geraci Law Firm & Conferences, one of the largest Bridge loan legal firms in the country, hosts the Innovate Conference where more than 250 attendees gather to learn about upcoming trends in the private lending industry. See what we learned at this year’s event below:
- Lenders are pressuring borrowers to pay off loans at maturity, rather than provide extensions, which is allowing more aggressive lenders to achieve returns in the high-teens to low-twenties since there is less lending competition.
- Interest rates will be higher for longer, putting more pressure on Bridge loan borrowers.
- Home prices have increased in every part of the country and delinquencies are below 3.9%, resulting in fewer homes going into foreclosure, according to private lender data.
- Rated securitizations are a “hot topic” in 2024.
From discussions on the nuances of the NPL market to forecasts about commercial and residential real estate trends, each event our team attended this spring provided our experts with valuable perspectives on the future of private lending and meaningful networking opportunities.
