The Pitbull Conference was hosted at the Four Seasons in Austin, Texas on October 22nd and 23rd. The conference brings together Hard Money Lenders and Brokers with a mission to help facilitate the ease of which any hard money privately financed transaction might occur. CoreVest was present at 2 other Pitbull Conference’s this year, in Scottsdale, AZ and Beverly Hills,CA.
CoreVest CEO, Beth O’Brien shares her 3 key takeaways from this event :
1. Lots of crazy talk but not so many crazy loans
The market is buzzing with people going to 100 LTV, cash out refis and speculative construction deals but when you sit down with the market makers, the established players are just not going there. Sure there are a few examples out there (one term sheet in particular was making the rounds), but the market is still pretty sane and keeping to its credit standards.
2. Spreads have compressed to the street/institutional capital but not as much to the borrower
The loan aggregators have definitely come in a notch in pricing again looking for yield in all the right places but surprisingly, the regional originators seem to be sticking to their pricing even with their long term borrowers. This is probably a good thing if rates continue to rise since there is still some room to compress at that level.
3. Fix and Flip is alive and well but could probably be better named value add
Rumors around the shrinking fix and flip market are way over blown. Short duration, high coupon mortgages are alive and well. The projects however are taking longer and requiring more value add financing and/or construction. Not really surprising given the obsolescence in many urban infill markets. It’s a great trend for getting homes where people want to live back in the housing stock.
Want to connect with CoreVest at the next conference? Visit our events page to see where we will be next.
CoreVest is the leading lender to residential real estate investors. We provide attractive long-term debt products for stabilized rental portfolios as well as credit lines for new acquisitions. For more information about how CoreVest can help grow your rental or rehab business, contact us today.