The current real estate investment market is characterized by rising financing costs, restricted credit access, growing reliance on private lending, and intensifying competition for distressed properties.
- According to the National Association of Realtors (NAR), foreclosures and short sales rose by 2% from the previous year.
- At the same time, private credit lending is expected to exceed $2.3 trillion globally by 2027 , as investors seek faster, non-traditional financing routes.
Investors must move decisively and strategically to secure opportunities while mitigating risk.
However, three recurring mistakes continue to limit investor success in today’s environment.
1. Delayed Action Due to Slow Financing
Traditional lenders are requiring more documentation, longer underwriting times, and increasingly conservative risk assessments. As a result, appraisal delays alone can add 10-15 business days to a closing timeline.
In competitive markets, this lag can cost investors the deal entirely. Dominion Financial’s Fix & Flip program addresses this critical bottleneck by offering:
- Closings in as little as 48 hours
- No appraisals required
- In-house underwriting for streamlined approvals
2. Inefficient Capital Allocation
Many investors are draining their personal cash reserves to fund acquisitions and renovations, leaving themselves overexposed and underprepared. Moreover, in today’s high-rate, credit-constrained environment, leveraging private lending options is often the safer, smarter alternative.
The ULI and PwC’s Emerging Trends in Real Estate® 2024 report highlights a critical shift: the market is adapting to a “higher for longer” interest rate environment, prompting a renewed emphasis on liquidity and financial flexibility. While the report doesn’t prescribe a one-size-fits-all strategy, one truth stands out: investors with access to liquid capital are better equipped to act on emerging opportunities and hedge against rising costs.
Dominion Financial’s 100% Loan-to-Cost (LTC) program empowers investors to fund both purchase and rehab with zero upfront cash, helping them:
- Expand their project pipeline without overextending
- Preserve liquidity for unexpected costs or new opportunities
- Stay competitive while others stall out
In today’s market, smart leverage isn’t just a preference—it’s a necessity. Investors who deploy capital strategically and maintain optionality will outmaneuver those stuck in rigid, capital-intensive plays.
3. Dependence on Conventional Lending Models
As regulatory pressures and bank de-risking strategies mount (post-Dodd-Frank and Basel III updates), many investors are discovering that conventional lending is increasingly misaligned with their operational needs.
Private lending is no longer an alternative; it is becoming the standard for serious investors. Dominion Financial’s private lending platform offers:
- Investor-first underwriting principles
- Tailored financing for fix-and-flip, rental, and ground-up development projects
- Certainty of execution, which is increasingly critical for credibility with sellers and brokers
By shifting away from outdated financing models, investors gain the agility to navigate and capitalize on today’s market complexity.
Navigate the New Market with Agility and Precision
Markets are cyclical, but windows of opportunity are fleeting. Investors who adapt their strategies now by leveraging speed, preserving liquidity, and aligning with the right financial partners position themselves to build durable wealth in the years ahead.
Dominion Financial’s commitment to speed, service, and investor-centric solutions offers a strategic advantage precisely when it is needed most. Learn how we can help you secure and scale your next investment today.
Start your next project: Dominion Financial approves Fix & Flip loans in as little as 48 hours.
