Central Insights
Stay up to date on California’s real estate lending market and income investing strategies.
FAQ
Clear answers to common terms and fund logistics in private credit and California real estate.
Why focus on California real estate credit?
California faces a chronic housing shortage — only 80,000 homes built annually vs. 180,000 needed — creating predictable demand for capital and making real estate credit one of the most compelling risk-adjusted opportunities
How does loan-to-value (LTV) impact risk?
Loan-to-value measures the loan amount against the property’s value. Central targets 65% LTV (75% max), which provides a substantial equity cushion. Lower LTV ratios help reduce risk, as properties hold more collateral value relative to the debt
What’s the difference between private credit in the mortgage industry and private business credit?
Mortgage private credit is secured by real estate — loans to developers and investors backed by property collateral, offering consistent yields with downside protection. Business private credit funds companies directly, often secured by cash flow or business assets, and carries more exposure to market cycles.
What is private lending?
Private lending is when non-bank lenders provide short-term, real estate–backed loans to investors and developers. Common types include bridge loans (fast financing between purchase and long-term funding), hard money loans (asset-based loans with flexible terms), and construction loans (capital for ground-up or major renovation projects). These loans are typically secured by property and offer investors attractive yields with collateral protection.
Why focus on California real estate credit?
California faces a chronic housing shortage — only 80,000 homes built annually vs. 180,000 needed — creating predictable demand for capital and making real estate credit one of the most compelling risk-adjusted opportunities
How does loan-to-value (LTV) impact risk?
Loan-to-value measures the loan amount against the property’s value. Central targets 65% LTV (75% max), which provides a substantial equity cushion. Lower LTV ratios help reduce risk, as properties hold more collateral value relative to the debt
What’s the difference between private credit in the mortgage industry and private business credit?
Mortgage private credit is secured by real estate — loans to developers and investors backed by property collateral, offering consistent yields with downside protection. Business private credit funds companies directly, often secured by cash flow or business assets, and carries more exposure to market cycles.
What is private lending?
Private lending is when non-bank lenders provide short-term, real estate–backed loans to investors and developers. Common types include bridge loans (fast financing between purchase and long-term funding), hard money loans (asset-based loans with flexible terms), and construction loans (capital for ground-up or major renovation projects). These loans are typically secured by property and offer investors attractive yields with collateral protection.
Why focus on California real estate credit?
California faces a chronic housing shortage — only 80,000 homes built annually vs. 180,000 needed — creating predictable demand for capital and making real estate credit one of the most compelling risk-adjusted opportunities
How does loan-to-value (LTV) impact risk?
Loan-to-value measures the loan amount against the property’s value. Central targets 65% LTV (75% max), which provides a substantial equity cushion. Lower LTV ratios help reduce risk, as properties hold more collateral value relative to the debt
What’s the difference between private credit in the mortgage industry and private business credit?
Mortgage private credit is secured by real estate — loans to developers and investors backed by property collateral, offering consistent yields with downside protection. Business private credit funds companies directly, often secured by cash flow or business assets, and carries more exposure to market cycles.
What is private lending?
Private lending is when non-bank lenders provide short-term, real estate–backed loans to investors and developers. Common types include bridge loans (fast financing between purchase and long-term funding), hard money loans (asset-based loans with flexible terms), and construction loans (capital for ground-up or major renovation projects). These loans are typically secured by property and offer investors attractive yields with collateral protection.
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