As with every aspect of industry the top companies in the real estate sector are constantly moving up and down in positions of power that have been reflected in annual lists of the most successful and influential individuals in the industry. Real estate lenders are among the professional individuals and organizations who are consistently changing places in terms of their power and position within the industry; with lending showing a slight downturn compared to previous years the first financial year under the Trump Administration has seen a number of non-traditional lenders leap up the list of 50 most influential real estate companies. Those who made this year’s list include Steven Mnuchin, Andrew Farkas and George Klett, among others.
The majority of people look at the work being completed in the real estate markets and imagine only those banks and private individuals located in metropolitan centers like New York City and London would break into the top 50. However, the Bank of the Ozarks is growing in importance for the real estate community from its base in Little Rock, Arkansas as the need to source new funding options from across the globe drives investors to explore all options.
As traditional lenders tighten their belts amid fears falling interest rates have finally bottomed out the rise of different funding options has seen members of the real estate and construction industries look to different options, such as the British hedge fund Acorn Capital. The bridge lending space freed up by Acorn Capital has allowed the fund to jump to the number 10 spot on the list of top 50 most important figures in real estate published by “The Observer”.
The changing nature of the real estate industry makes it more important than ever for lenders to consider the fact there remains a major chance that interest rates will continue to rise across the majority of 2017. Despite the background of President Donald Trump in real estate the conventional wisdom within the industry remains that at least two quarter point rate rises will be seen before the end of 2017 and have a major effect on how lenders look to provide funding for construction projects and other commercial real estate projects.