MIAMI—As the real estate cycle evolves, lending is becoming tighter. Securing construction loans and mortgages are taking longer as conventional lenders are increasingly cautious about the South Florida real estate market.

The Urban Institute Housing Finance Policy Center published a research note recently that sheds more light on the situation. The report cited date from the Home Mortgage Disclosure Act, revealing lower-credit applicants accounted for only 33% of all applicants in 2015. That compares to 62% in 2006, at the height of the bubble, and 50% in 2000, when market conditions were generally considered balanced.

Against this backdrop, private lenders are becoming more active in the region, helping fill the void left by some traditional lenders. GlobeSt.com sat down with Jim Fried, president of Sandstone Realty Advisors in Miami, to discuss the role of private lending in today's real estate market.