If you are a mortgage broker, lender, or wholesale partner, you have probably noticed something this year: real estate investors are no longer following the old norms. With interest rates hanging around 6.6%, climate risks shifting consumer choices, and hybrid work driving demand for flexible spaces, investors are rethinking their strategies. And if you don't adjust along with them, you're losing money.
At RCN Capital, we've spent recent months examining trends and conversing with brokers like you. This is what we've learned regarding how real estate investor trends in 2025 are going down — and how you can make yourself their partner of choice in this changing environment.
Investor trends in 2025 demonstrate a shift towards cash‐flow properties and sustainable developments as interest rates stabilize at around 6% and housing supply remains constrained. Real Estate Investment Strategies increasingly turn towards lower‐tiered multifamily assets, short‐term rental homes, and technology‐enabled platforms to simplify operations. Against this background, private lending for real estate investors presents an attractive financing alternative—delivering speed, flexibility, and customized structures beyond the capabilities of traditional banks.
Let’s break down how investors are pivoting in 2025, look at practical ways to assist real estate investors in 2025, and show you precisely how wholesale partners can use private credit to fuel deals in the year to come.
Following two years of pandemic‐instigated volatility, investors are retooling in favor of secure income streams. More than 68% of commercial real estate professionals anticipate fundamentals such as rental growth and occupancy to strengthen during 2025. Therefore, many of them are moving away from speculative flips in favor of cash‐flow properties—duplexes, small multifamily, and investor‐friendly condos come to mind.
Remote work's sustainability is pushing demand to second-tier cities and suburbs. Migration reports cite such markets as Boise, Austin's outskirts, and Charlotte as 2025 hotspots—markets where affordability still meets strong job growth. Clever investors are turning away from hyper-competitive big metros in pursuit of superior returns and reduced entry costs.
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Though big apartment buildings need lots of capital, duplexes, triplexes, and four-plexes are the sweet spot for most investors: reasonable financing, consistent rent, and less management. They tend to realize 7–9% cap rates in up-and-coming markets versus 4–5% in big metros.
Short‐term rentals remain attractive where regulations allow—tourist destinations and urban cores alike. Guests pay 20–30% above long‐term rents, boosting yields. Yet, with stricter Airbnb rules emerging, some investors blend short and medium-term leases, maximizing occupancy while staying compliant.
Sustainability issues are influencing tenant and buyer demand. Properties with solar installations or ENERGY STAR certifications earn rent premiums of 10% and experience a decline in vacancy rates by 15%. Investors are proactively seeking out sustainable real estate strategies in order to future-proof their portfolios and access pools of ESG capital.
Experts recommend diversifying beyond residential: industrial logistics, self-storage, and digital infrastructure (cell towers, data centers) are among the quickest-expanding niches in 2025. This diversifies away from sector-specific weakness and creates new streams of income.
Conventional mortgages may take 30–60 days; private lending often settles in 10–14 days, allowing investors to snap up time-sensitive opportunities. During Q1 2025, the volume of private loan origination expanded 8% QoQ as borrowers moved to ensure certainty in the face of bank pullbacks.
Private lenders can design custom terms—interest-only payments during the renovation period, mini-perm loans bridging construction through permanent financing, or equity participation agreements that align incentives. This tailor-made approach is a significant private lending benefit compared to bank products with a one-size-fits-all approach.
In a high-rate environment, most private loans have floating rates based on benchmarks. Banks might avoid rate risk, but private lenders pass through rate changes, maintaining margins and providing borrowers with transparent cost projections.
As bank lending standards become more stringent, publicizing a lending gap emerges, especially for non-conforming loans such as fix-and-flip, bridge, and junior capital. Private credit assets increased almost twofold from $1 trillion in 2020 to $1.9 trillion in 2024 and are headed towards reaching $2.8 trillion by 2028. This trend validates that the private lending market is transforming real estate finance.
Host webinars or release guides contrasting Private Loans vs Traditional Loans in 2025. Emphasize case studies: a bridge loan closing in 10 days that saved a flip project $25k in carrying costs compared to a 45-day bank mortgage.
Build relationships with direct private lenders, family offices, and specialty funds. Offer clients a menu of high-interest rate lending strategies, from senior asset-backed loans to mezzanine debt with equity kickers.
Gather localized market information—including growth rates, demographic changes, and real estate trends. Present yourself as the single advisor for real estate investing strategies, pointing investors toward areas with the greatest demand.
Implement electronic platforms that tie loan application, document exchange, and status follow-up. Clients able to receive live updates see 30% reduced stress levels and 50% increased rates of satisfaction.
Collaborate with RCN Capital to co-sponsor events featuring speakers on issues such as Investors Are Shifting in 2025. Use shared marketing materials to re-emphasize your private lending value proposition and expand your referral pool.
2025 requires agility. With the changing financing scenarios, private lending for real estate investors provides unparalleled velocity, agility, and innovative solutions. Keeping up to date on industry trend equips your clients with the ability to shift smoothly.
The best way to save on a real estate investment is to obtain financing from a lender that can provide you with the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate professionals. If you are looking to add private lending programs to your offerings, RCN Capital has competitive loan options and an award-winning broker referral program available to partners. Connect with us today to discuss our real estate financing solutions and how we can help you grow your business.