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- September 11, 2026
- Insights
After attending the recent FORTRA conference in Newport Beach, I came away thinking about three trends that came up repeatedly in conversations with lenders and investors.
Here they are:
- Rental exits: More borrowers are considering holding properties as rentals instead of selling.
- Geographic shifts: More activity is moving into Midwest and Rust Belt markets.
- Liquidity pressure: Local banks are lending again, but deposit requirements are tying up borrower cash.
On the surface, these may seem like separate developments. But I think they point to the same conclusion: as investors become more flexible in how and where they pursue opportunities, they need lending partners that support that flexibility.
In a market where the right strategy can change from one deal to the next, your lender shouldn’t limit your options.
Your Exit Strategy May Change. Your Lender Needs to Understand Both Sides.
One of the clearest themes I heard at FORTRA was a shift in how investors are thinking about exits.
The traditional fix-and-flip or build-to-sell model isn’t always producing the same economics it used to. Longer days on market, higher conventional mortgage rates, and tighter sale margins are a few of the main culprits. As a result, more borrowers are underwriting fix-to-rent and build-to-rent exits.
That makes rental expertise increasingly valuable in a lending partner.
If you decide that holding a property makes more sense than selling it, you need to understand the path from your current financing into a long-term rental loan. What does the property need to look like before it can qualify? How will its rental income support the new debt? When does it make sense to make the transition?
These are easier questions to answer when rental housing isn’t a secondary product for your lender, but a core part of its business.
Opportunity Is Moving. Can Your Lender Move With It?
Another big theme at FORTRA was increased activity in Midwest and Rust Belt markets relative to some of the Sunbelt markets that have attracted so much investment in recent years.
The appeal isn’t difficult to understand. Many of these markets offer lower entry basis and attractive rental economics, while many Sunbelt markets have experienced significant cap rate compression.
That doesn’t mean investors should abandon the Sunbelt for the Midwest. It means they’re looking more closely at where the numbers work today rather than assuming yesterday’s target markets still offer the best opportunities.
Your financing partner can either support that flexibility or restrict it.
If your lender only operates in certain states or markets, financing becomes another variable you have to solve every time opportunity takes you somewhere new. A lender with nationwide reach gives you the ability to follow the economics without continually rebuilding your lending relationships.
The Cost of Financing Isn’t Just the Rate
Local and community banks are active again, giving investors another potential source of capital. But there’s an important catch: deposit requirements are eating into liquidity.
For an active investor, that can be very frustrating.
Many investors are seeing more buying opportunities right now than they have in several years. Cash tied up to satisfy a banking relationship is cash that can’t be deployed toward the next acquisition.
That’s why investors are smart to look beyond rate when comparing financing options. Ask what the entire capital structure does to your ability to keep investing.
Choose a Lender That Expands Your Options
The common thread I heard at FORTRA was opportunity. Investors are finding it in different strategies, different markets, and potentially in greater volume than they have in recent years. But taking advantage of those opportunities requires the ability to adapt.
You may need to turn a potential sale into a rental. You may find your next acquisition outside your traditional footprint. You may need to preserve cash so you can pursue several opportunities instead of just one. And when the right deal appears, you may need to move quickly enough to win it.
Your lender should make those things easier, not harder.
That’s the model we’ve built at Encore Finance: deep expertise in rental housing, nationwide lending capabilities, private capital without bank deposit requirements, and a team built to execute when timing matters.
The market will continue to change. The more flexibility you have to change with it, the better positioned you’ll be to pursue the opportunities it creates.
If you’re evaluating your financing options or looking for a lending partner that can keep pace with where your strategy takes you, I’d be happy to connect. Contact me at christian@encorefinance.com to start the conversation.
