MIAMI, Fla. - In a year-in-review of 2025, Ridge Street Capital reports that real estate investors leaned on speed, structure, and underwriting discipline to keep deals moving amid “higher for longer.” While late-year policy signals improved sentiment, tighter credit conditions made execution and “all-in” cost comparisons more decisive than headline APR.

Ridge Street Capital said 2025 was less about rate shopping and more about execution, with investors who kept deals on track coming prepared with clean documentation, conservative stress tests, and financing aligned to each property’s timeline.

What changed: speed and structure took the lead

• Timelines and certainty of close. Buyers increasingly prioritized process reliability and time to fund alongside pricing.

• Cash-flow realism. Underwriting centered on rent rolls, occupancy stability, reserves, and sensitivity testing.

• A broader toolkit. When traditional 30-year options felt slow or mismatched, some investors evaluated alternatives — including asset-based real estate loans — to align investment property financing with deal pacing and business plans. On first pass, many also compared DSCR (Debt Service Coverage Ratio) loans with agency or private-capital options to see which structure penciled at current rents.

The “all-in” comparison became the baseline

With margins tighter and refinance assumptions more conservative, many borrowers compared agency, DSCR, and private-capital quotes side by side, selecting the structure that penciled at current rents and provided flexibility on exits. Ridge Street Capital, a private lender, noted that this shift made process certainty and covenant terms as decisive as the coupon itself.

What carried into early 2026

Ridge Street Capital expects investors to remain selective in early 2026, emphasizing conservative leverage, clean files, and financing matched to the actual plan (stabilize-and-hold vs. renovate-and-exit). Market participants are watching policy guidance and weekly mortgage trends to see whether better math becomes real deal volume.

About Ridge Street Capital

Ridge Street Capital is a private lender that provides financing solutions for residential real estate investors, including DSCR and value-add strategies.

Notice: This press release is provided for informational purposes only and does not constitute financial, investment, or lending advice. Nothing herein is an offer or commitment to lend; all loans are subject to underwriting, terms, and applicable law.

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Company Name: Ridge Street Capital
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Website: https://www.ridgestreetcap.com/