Steve Klein, partner of accounting firm Gerson Preston tells GlobeSt.com developers in certain markets have discovered private investment can operate even more efficiently and with less regulation than banks at a time when deals need to be made quickly. As a strategic example of this impact, he cites the growing influence of private equity firms in real estate, such as Blackrock.

“Blackrock has been rated one of the largest landlords in the country by having snatched up troubled real estate during the recession,” Klein says. “The clear winners are the private investors who can move quickly to generate returns on their equity, and developers who can manage to eliminate traditional lending from their building process and continue to fund projects as competition slows.”

ATLANTA—Alternative financing started gaining momentum in the capital markets crunch after the Great Recession. However, these models—such as mezzanine financing EB-5 capital, of course, crowdfunding—are coming into their own. Crowdfunding officially qualifies as a bona fide industry buzzword.

Allen Shayanfekr, CEO of Sharestates, an online crowdfunding platforms, tells GlobeSt.com the the impetus for crowd funding, more generally, was twofold. “First, to provide more widespread access to capital for entrepreneurs who needed capital, but couldn't raise much money or couldn't afford the expensive legal fees associated with putting together private placements,” he says. “Second, to give investors an opportunity to get into companies at the ground floor, rather than when they're already massive and much of the upside is already gone.”

Steven Fischler, founder and principal of New Gables Capital, a real estate private lending company, predicts alternative lending is going to continue to become more and more prevalent in the commercial real estate industry. That's because with banks constantly being put under harsher regulations, and the new regulations that kicked in at the end of 2015 for CMBS, there is a definite void in the market.

“That void is being filled by specialty financing and alternative lenders,” Fischler tells GlobeSt.com. “The larger specialty finance players, which include private equity and hedge funds, are typically covering larger deals, such as $20 million and up. Alternative and private lenders are usually beneath that level but are increasing their loan sizes more and more.”

Steve Klein, partner of accounting firm Gerson Preston tells GlobeSt.com developers in certain markets have discovered private investment can operate even more efficiently and with less regulation than banks at a time when deals need to be made quickly. As a strategic example of this impact, he cites the growing influence of private equity firms in real estate, such as Blackrock.

“Blackrock has been rated one of the largest landlords in the country by having snatched up troubled real estate during the recession,” Klein says. “The clear winners are the private investors who can move quickly to generate returns on their equity, and developers who can manage to eliminate traditional lending from their building process and continue to fund projects as competition slows.”