REI Wealth Magazine Featuring Kaaren Hall with uDirect IRA Services | Page 91
T
hings have changed dramatically since the crisis of 2008. example, created
Spurred by a collapse of the housing market, the most DebtMaven, which is like a
financially tumultuous time in recent history drove large financial Tinder of sorts, is
scale, wellknown banks to pull the ebrake on real matching borrowers with
estate lending. While the jury is still out, there’s no denying that the lenders. These types of
crash of the late2000s was exacerbated by banks handing out tools are yet to exist at
mortgages to risky borrowers who, frankly, couldn’t afford them. scale in the real estate
investment sphere.
So, suffice to say that, even to this day, those lattermentioned banks
are still quite hesitant to give out speculative loans. It’s like selling the Now after just two years,
same jug of milk within the same financial bounding box. You either almost 500 lenders are
fit within the parameters of that box, or not. However, it’s this exact signed up on the platform,
hole in the market that’s allowed private lenders to enjoy a massive ready to match with a
second wind of popularity. growing amount of private
lenders on the hunt for
lending opportunities.
Lending from Nonbank Intermediaries
“They’re hooked on deal
flow and willing to pay,”
Selleck told Bloomberg in
Private lending has turned the tables on the traditional banking regards to his lenders. “It’s
industry’s foremost product: Loans. Ten years since our nation’s most grown at a crazy pace.” It’s
recent economic downfall, investors, from all industries and niches, not the same type of
having poured literally billions into companies and business that have lending were used to, but a
been deemed by “Big Banks” to be too trivial or volatile to lend great analogy of the overall
against. market trend.
Well, it’s turning out that this is an incredibly lucrative, healthy,
growing market. Money flowing in is feeding the tenyearlong trend
of private lending. In fact, its valued at $500 billion, according to
figures recently published by Bloomberg. The numbers are only
growing, quarter after quarter; by 2020, it’s estimated that private
lending could top $1 trillion. Much of which is within a completely
unregulated financial market.
Techsavvy entrepreneurs are jumping on the proverbial train to,
quite literally, capitalize on this boom, all while making it easier for
smallscale borrowers to find applicable lenders. Jordan Selleck, for
91