Ask Litra: What Returns Do Private Lenders Expect in 2026?

In the episode of 'Keys to Success' hosted by Litra Simms, the topic centred around the returns private lenders can expect in 2026 in the realm of real estate. First, she explains that private lenders primarily seek predictability and protection in their investments. Return expectations vary based on the risk and type of property, with safer deals warranting lower returns, and riskier projects demanding higher returns. The importance of aligning investment strategies with lender expectations is emphasized throughout. Litra also discusses the role of experience in influencing lender return expectations, with a strong track record and good communication often leading to better terms. Market conditions, she notes, also play a significant role in shaping return expectations. The importance of a clearly-structured deal, transparency, sustainable relationships, and understanding liquidity preferences in private lending are touched upon. Finally, she highlights the vitality of balancing key elements such as fair returns, strong communication, and real asset protection in private money deals.