How Donald Trump Could Influence Real Estate and Private Money Lending

Whether you support him or not, there’s no denying Donald Trump’s impact on the U.S. real estate landscape—both as a developer and a policymaker. If Trump regains influence in the political arena, real estate investors, developers, and private money lenders should keep an eye on how his economic stance could shift the market.

Let’s break down what a Trump-led policy environment might mean for both sectors.
1.
Real Estate Deregulation
Trump has historically pushed for fewer restrictions on development and construction. A return to a deregulation-heavy agenda could mean:

• Easing of zoning laws or environmental regulations in certain markets
• Faster permitting processes
• Encouragement of new housing development, particularly in suburban and rural areas

This could create a surge in development activity—especially in red-leaning states—leading to more opportunities for private lenders to fund ground-up and value-add deals.
2.
Private Money LendingTax Policy Impacts
Trump-backed tax policies have historically favored real estate investors. Key possibilities include:

• Renewed support for 1031 exchanges
• Preservation (or even expansion) of capital gains tax incentives
• Favorable treatment of depreciation and pass-through income

These types of changes could juice investor activity, leading to more acquisitions, flips, and refinances—all of which drive demand for private money lending.
3.
Interest Rates & Inflation Outlook
While the Federal Reserve operates independently, Trump has voiced strong opinions about keeping interest rates low. If his influence pressures monetary policy toward rate suppression, we might see:

• Cheaper borrowing costs in the private market
• Lower cost of capital for lenders
• More aggressive leverage used in real estate deals

For private lenders, this could mean more competition—and potentially tighter margins—but also higher loan volume.
4.
Immigration and Housing Demand
Immigration policy can directly impact housing demand. A restriction-heavy approach could slow household formation in certain regions, reducing demand for rentals and entry-level housing. On the flip side, any pro-growth immigration stance would likely support stronger housing demand, particularly in metros like Texas, Florida, and Arizona.
Private lenders focused on residential investments in high-immigration markets will need to adapt their risk models accordingly.
5.
Infrastructure Spending
Trump has historically championed infrastructure projects. If massive infrastructure spending resumes, expect:

• Booming growth in tertiary markets and suburban corridors
• Increased land value and construction demand
• More ground-up development, especially in logistics and commercial real estate

That’s good news for private lenders who fund construction, bridge, and value-add projects in growth corridors.
Final Thoughts
Love him or hate him, Donald Trump’s influence on real estate is undeniable. For real estate professionals and private money lenders, it’s not about politics—it’s about preparing for the shifts in regulation, tax structure, and economic policy that could dramatically impact deal flow, borrower demand, and investor behavior.

If you’re in the business of real estate finance, stay focused on the macroeconomic signals, not the political noise. Because policy—not personality—moves markets.