Loan Volume Distribution: Below vs. Above $100,000

Loans Below $100,000:

These smaller loans are prevalent among individual investors and small-scale real estate projects.

They are particularly common in markets with lower property values, such as parts of Michigan, where

average loan amounts hover around $150,000, indicating a significant portion of loans below the $100,000 mark.

Loans Above $100,000:

Larger loans dominate in high-value markets. For instance, Dallas reports average private loan amounts of approximately $750,000, while Georgia averages around $500,000.

In Q1 2025, the average bridge loan amount reached $659,736, with the median loan amount decreasing, suggesting that while a few large loans are driving up the average, most loan activity remains concentrated in accessible mid-range deals.

Understanding this distribution is crucial for tailoring referral strategies:

Targeting Smaller Loans (<$100,000):

Focus on regions with lower property values where smaller loans are more common.

Appeal to individual investors and small business owners seeking quick, flexible financing solutions.

Targeting Larger Loans (>$100,000): 

Concentrate efforts in high-value markets like Dallas and Georgia.

Collaborate with experienced real estate developers and investors undertaking substantial projects.

By aligning referral efforts with these insights, referral partners can effectively connect clients to suitable funding opportunities, enhancing the success rate of referrals and contributing to the program’s growth.

Consider this: Would you rather get several base hits per month, or work for months trying to get a home run?

References

[1] 7e Investments. The State of Private Lending: Trends and Insights for 2025. Accessed: 2025-05-17. 2025. https://7einvestments.com/the-state-of-private-lending-trends-and-insights-for-2025. 

[2] Lightning Docs. Q1 2025 Loan Volume Report. . 2025. https://lightningdocs.com/articles/q1-2025-loan-volume. 

[3] Pix4free.org - link to - https://pix4free.org/