What is private money lending?

Private money lending refers to financing provided by individuals or non‑bank entities for real‑estate investments. These loans are asset‑based rather than credit‑based and usually have short terms with higher interest rates compared with traditional bank loans.

How do I qualify for a real‑estate investment loan through Titan Funding?

Titan Funding evaluates the property’s value and the loan‑to‑value ratio rather than focusing on credit scores. Maintaining an LTV around 60 % and providing a clear plan for the investment increases your chances of approval.

What documents are needed for hard‑money loans?

Documentation typically includes proof of property ownership or purchase contracts, appraisals, and, for construction loans, detailed plans and budgets. Because underwriting is asset‑based, credit documentation is less critical than in conventional lending.

How quickly can I get funded for a property in Florida?

Titan Funding’s underwriting process usually takes about 48 hours, and approved borrowers can receive funds within four days for hard‑money, rental or bridge loans. Some commercial bridge loans provide funding in as little as 10 days.

Does Titan Funding lend to foreign nationals?

Yes. Titan Funding offers hard‑money programs for non‑U.S. citizens seeking to buy or refinance property in South Florida, using asset‑based underwriting to bypass conventional loan barriers.

What types of loans does Titan Funding offer?

The company provides various short‑ and long‑term real‑estate loans, including hard‑money and bridge loans, residential and commercial bridge loans, multifamily financing, fix‑and‑flip loans, rental property loans, ground‑up construction loans, bridge‑to‑permanent loans and cash‑out refinance options.

How does LTV work in real‑estate loans?

Loan‑to‑value ratio is calculated by dividing the loan amount by the appraised value of the property. Lenders, including Titan Funding, set maximum LTV thresholds (often around 60 % for hard‑money loans) to manage risk.

Which states does Titan Funding serve?

Titan Funding primarily serves Florida but may authorize loans in other states on a case‑by‑case basis. Applicants can discuss their specific property and location with the company’s professionals.

How do I calculate return on investment (ROI) for fix‑and‑flip projects?

ROI is determined by subtracting total costs (purchase price, renovation expenses, loan interest and fees) from the final sale price, then dividing the result by total costs. Titan Funding’s guide on calculating fix‑and‑flip ROI emphasizes factoring in loan terms and interest to evaluate profitability.

What are the risks of hard‑money loans?

Hard‑money loans carry higher interest rates (often 10 %–15 %) and points compared with traditional financing. They are short term, so borrowers need a clear exit strategy and must account for appraisal and origination fees in their budgets.

I. Introduction: From Niche to Necessity

Private credit has evolved from a niche financing alternative into one of the fastest-growing corners of the institutional investment universe. Once regarded as a small subset of alternative assets, private credit has emerged post-Global Financial Crisis (GFC) as a powerful force in capital markets, supplying critical funding where traditional banks have retrenched.

As of 2025, private credit has surpassed $1.7 trillion in global assets under management, with forecasts expecting that number to grow to over $2.6 trillion by 2028, according to Preqin. This expansion is not driven by boutique lenders alone; global institutions, pensions, insurers, sovereign wealth funds, are rapidly increasing their allocations. In this post, we explore the catalysts, benefits, and future trajectory of the institutional shift toward private credit, with a particular focus on real estate-backed strategies.

II. Private Credit: Origins and Evolution

Private credit’s modern rise began after the 2008 financial crisis, when regulatory changes like Basel III forced banks to reduce risk and deleverage. This left a credit vacuum, particularly for small-to-mid-sized borrowers. Asset managers stepped in, creating direct lending vehicles to fill the void.

Ares Capital Corporation, founded in 2004, was among the first to capitalize on this shift. Post-2008, Blackstone (through its credit arm GSO, now Blackstone Credit & Insurance) and Apollo aggressively expanded into the space. They were followed by dozens of competitors offering middle-market, asset-based, and opportunistic lending platforms. From 2010 to 2024, the private credit market grew at a CAGR exceeding 14%, according to PitchBook.

III. Institutional Demand Accelerates

According to a 2024 Goldman Sachs Asset Management survey, 78% of institutional investors plan to increase allocations to private credit over the next 12 months. This trend is driven by persistent demand for yield, portfolio diversification, and lower volatility compared to public markets.

Pension funds in particular have turned to private debt for liability-matching purposes. Insurance companies are expanding exposure to complement their general account investments. Endowments and sovereign wealth funds now consider private credit a strategic allocation.

Blackstone’s president, Jon Gray, recently emphasized that “private credit is no longer a niche, it’s a core allocation.” Apollo and Ares each reported record fundraising in 2023, focused heavily on private debt strategies.

IV. Structural Benefits of Private Credit

Private credit offers several advantages over traditional fixed income:
– Higher yields: 8%–12% vs. 3%–5% in investment-grade bonds
– Downside protection: Through covenants, senior secured positions, and bespoke structuring
– Low correlation: Limited sensitivity to public market volatility
– Customization: Terms tailored to the borrower and investment objectives

V. Real Estate Lending as an Institutional Strategy

Within private credit, real estate debt is uniquely attractive due to its collateral-backed nature. Bridge loans, construction financing, and transitional lending offer high yields secured by tangible property. For example, loans underwritten by Titan Funding typically feature:
– LTV ratios under 60%
– First-lien positions
– Monthly income distributions to investors

A recent Titan bridge loan for a luxury residential property in Tennessee was structured at 32% LTV with a 12-month term and a 10.5% interest rate. These characteristics provide downside protection while generating consistent income.

VI. Risk Considerations and Controls

Despite its strengths, private credit involves:
– Liquidity risk: Locked-up capital over 12–36 months
– Manager risk: Due diligence on underwriting and servicing is critical
– Default risk: Mitigated by asset coverage and conservative structures

Institutional investors manage these risks through diversification, layered due diligence, and partnering with seasoned platforms that prioritize transparency and governance.

VII. Regulatory and Access Trends

The SEC and Department of Labor have begun issuing guidance allowing broader access to private credit in retirement plans, 401(k)s, and certain fund structures. Interval funds, business development companies (BDCs), and customized SMAs are enabling advisors and high-net-worth clients to participate in institutional-caliber deals. Platforms like Titan Funding, with clear documentation and investor dashboards, bridge the gap between institutional rigor and private client accessibility.

VIII. Future Outlook

Private credit’s institutionalization is far from over. Blackstone anticipates that private credit could double its footprint in institutional portfolios by 2030. Traditional banks still constrained and public bond markets offering inconsistent returns. Direct lending is poised to remain a central tool in yield generation.

For U.S.-focused investors, real estate private credit stands out as an attractive subset: short duration, predictable cash flow, and downside protection through real asset collateral. Whether you’re a pension manager, family office, or sophisticated private investor, the time to explore or expand private credit exposure is now.

IX. Titan Funding’s Role

Titan Funding specializes in real estate bridge loans and asset-backed debt instruments with low LTVs and high visibility. With over a decade of performance and a disciplined underwriting process, Titan provides accredited investors and family offices with access to institutional-quality private credit opportunities in the U.S. residential and commercial real estate markets.