How the Capital-Flow Landscape Has Changed

Recent regulations have opened the doors of possibility for marketplace lenders, Money360’s Gary Bechtel said, as the other panelists looked on.

COSTA MESA, CA—New lending regulations have made it difficult for traditional lenders to do certain types of loans, forcing borrowers to work with private lenders, a positive step for the industry, said panelists at RealShare Orange County here Tuesday. This development has created a wealth of opportunity for marketplace lenders, diversifying the industry and providing capital for nearly every type of loan.

Francesca Braniger, VP and senior relationship manager for Sunwest Bank, as well as this year’s president of CREW-Orange County, asked the panelists what they are seeing investment-wise on the debt and equity side. Paul Rahimian, CEO of Parkview Financial, said he is seeing low cap rates in Orange County and healthy deal flow on the lender side. Gary Bechtel, president of Money360, said cap rates will change, but slowly; for the foreseeable future, they will remain “crazy low.”