“The lender said no… and I don’t know what happened.”

That sentence usually means the deal was already in trouble long before it ever reached a lender’s desk.

From our seat in private credit, we see this pattern constantly. Transactions rarely collapse in underwriting. They unravel earlier, during deal formation, expectation setting, and early structuring. Financing simply becomes the messenger.

That is exactly why we joined this conversation.

Charles Farnsworth, Fund Director at 1892 Capital Partners, recently sat down with Matthew Ma for a wide ranging discussion on modern real estate finance, private lending, and why agents and investors need to understand capital earlier in the process.

With more than 25 years in real estate finance and billions overseen across private credit and institutional platforms, Charles brings a lender’s perspective shaped by multiple market cycles, asset classes, and deal structures.

For agents, brokers, and investors operating in today’s environment, this episode offers practical clarity on why deals stall, how lenders actually evaluate risk, and what keeps transactions alive.

Why So Many Deals Break Before Financing Ever Begins

One of the core themes of the conversation is simple. Most financing issues are not surprises. They are predictable outcomes of early decisions.

From a lender’s perspective, warning signs often appear before an offer is even written. These include unrealistic assumptions, incomplete budgets, unclear ownership structures, or borrowers taking on projects beyond their current experience.

When deals eventually reach a lender, underwriting is not where problems start. It is where they become visible.

Charles explains how experienced lenders look at deals holistically, not just through rate or leverage. Value, collateral quality, sponsorship strength, and exit strategy are evaluated together. If one of those pillars is weak, the entire structure becomes fragile.

This is why early conversations matter. Agents who understand this process can protect their clients and their pipelines by identifying issues before momentum is lost.

How Private Lending Approaches Deals Differently

At 1892 Capital Partners, private lending is not about replacing banks. It is about filling the gaps banks cannot or will not address.

The firm focuses on income producing bridge loans, typically ranging from three to ten million dollars, across Washington, Utah, Idaho, and select Western markets. These loans often support stabilized or near stabilized assets that need flexibility, timing solutions, or transitional capital.

Private lending differs from traditional bank financing in several important ways:

• Decisions are relationship driven rather than product driven
• Structure can adapt to real world deal complexity
• Credit evaluation considers context, not just checklists
• Conversations start earlier and stay more collaborative

Because 1892 operates within a family office structure, lending decisions are long-term oriented. The firm is not chasing volume or quarterly fundraising targets. That allows for disciplined underwriting paired with practical creativity.

What Agents and Investors Often Miss About Financing

Another major takeaway from the episode is how often financing is treated as an afterthought.

Many deals are marketed as strong opportunities without fully considering how lenders will assess risk. Optimism replaces diligence, and assumptions go unchallenged until a lender says no.

From Charles’s perspective, common gaps include:

• Overconfidence in appreciation without a clear exit
• Underestimating construction or repositioning risk
• Weak alignment between partners and guarantors
• Limited contingency planning if the market shifts

In a tighter credit environment, these issues carry more weight. Lenders are less forgiving, not because capital has disappeared, but because risk must be priced and structured more carefully.

Why Partnerships and Transparency Matter More Than Ever

One of the strongest throughlines of the conversation is the role of partnership.

Healthy deals are rarely built in isolation. They are the result of aligned expectations between agents, borrowers, lenders, and capital partners.

When agents understand how lenders think, they become better advisors. They can ask better questions, surface concerns earlier, and guide clients toward structures that actually close.

From our perspective, the best lending relationships are built long before a deal is live. Trust is earned through honesty, clarity, and consistency. Capital follows credibility.

Market Conditions Shaping Lending Right Now

The episode also touches on the broader forces shaping real estate finance today.

Interest rate volatility, slower price discovery, and cautious bank balance sheets have changed how deals are underwritten. Bridge capital has become a critical tool for navigating this transition.

Shorter term loans, disciplined leverage, and realistic assumptions are helping borrowers and lenders manage uncertainty while waiting for markets to stabilize. Private credit plays an essential role during these periods, offering flexibility without abandoning discipline.

As Charles notes, real estate is resilient, but it rewards preparation. The deals that survive are the ones built with margin, patience, and realistic expectations.

Why This Conversation Matters

For real estate professionals who want fewer surprises and stronger outcomes, this episode provides a clear window into how private lenders evaluate deals before underwriting ever begins.

It challenges agents and investors to think differently about financing, not as a hurdle at the end, but as a strategic component from the start.

Understanding how capital thinks does not just save deals. It elevates the entire process.

Episode Chapters

00:00 Why Deals Really Fall Apart
03:02 Charles’ Lending Origin Story
06:05 How Private Lending Has Evolved
09:01 What Lenders Look For
12:02 Navigating Today’s Lending Landscape
14:42 Advice for New Investors
17:44 Why Partnerships Matter
20:54 Hidden Financing Pitfalls
23:32 How Risk Gets Mitigated When a Deal Looks Dead
26:50 What Agents Often Miss
29:44 Lending Trends to Watch
32:35 Market Challenges Right Now
35:32 Why Knowledge Matters
38:27 The Lending Impact of Market Shifts
40:58 The Future of Real Estate Investing
43:54 Final Thoughts

Listen to the Full Episode

🎧 Matthew Ma Podcast

This conversation is for agents, brokers, and investors who want to understand financing before it becomes a problem.

Connect With Our Team

If you are evaluating a project in Washington, Utah, or Idaho and believe it may benefit from income producing bridge financing, we are always open to a conversation.

Charles M. Farnsworth
Fund Director, 1892 Capital Partners
(253) 592-3452
charlesf@1892capital.com

The strongest deals are built early, with clarity, structure, and the right lending partners at the table.