RCN Capital Blog

How Brokers Can Position Private Lending as a Competitive Advantage

Written by RCN Capital | 3:59 PM on January 28, 2026

The market share of private lenders in commercial real estate has almost doubled since the pandemic. It went from an average of 4.6% between 2010 and 2020 to 8.6% from 2021 to 2025. At the same time, the number of bank CRE loans declined substantially, from 50% of the market in 2022 to just 31% in 2024. This was because of regulatory pressure and liquidity constraints that reshaped traditional lending.

As we move into 2026, the market is characterized by selective liquidity rather than easy capital. Banks are still being careful, underwriting standards are high, and many real estate investors need to be quick, flexible, and smart about how they structure deals in order to compete. This change has opened the door to opportunities for brokers who know how to use private loans to solve problems that traditional financing can't.

Positioning Private Lending as a Strategy

A well-defined private lending strategy positions private capital as:

  • A way to move faster in competitive acquisition environments
  • A tool to structure financing around property performance rather than the borrower's W-2 income
  • A bridge between acquisition, stabilization, and permanent financing

When framed correctly, private lending is purposeful capital aligned to execution.

Speed and Certainty: The Broker’s Differentiator

Speed is still one of the best things about private lending. Private lenders usually close in a matter of weeks, whereas traditional lenders can take up 45 days. In competitive marketplaces, especially for off-market assets, distressed properties, or value-add opportunities, speed matters more than financing costs.

For brokers, getting things done faster makes them more trustworthy in the eyes of both investors and referral partners. It also lowers the chance of blowback and keeps commissions safe.

Flexible Underwriting That Matches Investor Profiles

Traditional lenders still use personal income, debt-to-income ratios, and customary rules for loan qualification. Private lenders, on the other hand, look at asset quality, leverage, exit strategy, and execution history.

This method works well with private loans for investors who own more than one property, have self-employed income, or have assets that are changing hands. Brokers broaden approval channels without sacrificing discipline by changing the underwriting conversation from borrower limitations to deal fundamentals.

Deal Structuring as a Value-Add Service

As investors become more knowledgeable, brokers are increasingly judged on their ability to arrange capital. Brokers can structure private lending transactions such that the conditions of the loan match the business plan instead of just pushing clients into strict arrangements.

Effective structuring considerations include:

  • Matching loan term to renovation or stabilization timelines
  • Using interest-only payments to preserve cash flow
  • Leveraging cross-collateralization where appropriate
  • Sequencing maturities to avoid liquidity compression

RCN Capital's private loan products are made to help with this level of personalization, with flexible options for single-family homes, multifamily homes, bridge scenarios, fix-and-flips, and rental portfolios.

Program Flexibility That Supports Execution

Private lending works when the rules of the program match how investors act. RCN Capital's financing platforms are made to work with real-world deals, not just theoretical models.

Depending on asset type and execution plan, private lending programs may offer:

  • Loan terms ranging from 12 months to 30 years
  • Loan-to-value ratios up to 80% on purchases
  • Cash-out options for portfolio optimization
  • Minimum FICO requirements starting in the mid-600s
  • Eligibility across single-family, multifamily, mixed-use, and non-owner-occupied assets

This flexibility allows brokers to match capital to opportunity rather than limiting investor growth.

Why Private Lending Outperforms in Transitional Markets

Market data show that private financing is still important. According to Invesco Real Estate, private lenders made up an average of 8.6% of new U.S. commercial real estate loans after the pandemic, which is over twice as many as before 2020. With over $1.3 trillion in commercial loans coming due each year until 2029, private capital will continue to benefit from refinancing and repositioning.

For brokers, this creates sustained opportunities for years to come.

Common Broker Mistakes to Avoid

Even experienced brokers may underutilize private lending by falling into these predictable traps:

  • Introducing private capital too late in the process
  • Over-leveraging assets without clear exit strategy alignment
  • Treating private lending as transactional rather than strategic
  • Failing to educate clients on how private capital fits into long-term plans

Avoiding these pitfalls requires confidence in program mechanics and strong lender partnerships.

How RCN Capital Supports Broker Success

RCN Capital works directly with brokers, private lenders, and referral partners all around the country to provide reliable financing options that focus on execution. RCN Capital is a direct lender that offers both program flexibility and institutional rigor. This lets brokers grow without losing certainty.

By partnering with RCN Capital, brokers gain access to:

  • Purpose-built private lending platforms
  • Consistent underwriting and execution standards
  • Programs designed for investor scalability
  • Free broker training and white label marketing materials
  • A lender experienced across market cycles

This relationship lets brokers utilize the benefits of private lending in the a long term, not just as a one-time fix.

Positioning for 2026 and Beyond

In 2026, the brokers that win are the ones who are direct, structured, and good at execution, and who work with lenders who can grow with them. Visit RCN Capital's broker programs to find out how strategic private financing can help your business expand this year.