Bridging the Capital Gap: How Genesis Capital Is Redefining Private Lending for Residential Real Estate’s New Era

Genesis Capital is at the forefront of a major shift in real estate finance, where private credit has evolved from a niche solution into a core strategy for top-tier developers. With deep expertise across all residential asset classes and a reputation for working with high-performing operators, Genesis is helping reshape the capital landscape for the next cycle.

The Private Credit Inflection Point

Private credit has reached a pivotal moment in the evolution of real estate finance. As traditional lenders face regulatory constraints and capital pressures, developers are increasingly turning to more agile, relationship-driven capital partners.

“Private credit isn’t new,” said Clint Arrowsmith, CEO of Genesis Capital. “What’s new is how core it’s becoming to the strategies of the most sophisticated developers — and the institutions that back them.”

At its core, private credit is a negotiated loan between a borrower and a non-bank capital provider. In today’s environment — marked by elevated interest rates and tighter credit conditions — demand for flexible, reliable capital has surged. What was once considered an alternative is now essential, particularly in residential real estate, where speed, certainty and creativity are critical to execution.

The Bank Is No Longer the Bank — and That’s a Good Thing

Today’s banking environment — shaped by tighter regulations, capital reserve requirements and exposure limits — is creating a gap in the market for real estate financing. While traditional lenders remain cautious, developers still need capital that offers both reliability and speed.

“There’s still demand for institutional-grade capital, but without the red tape,” said Joe Bleyle, the president of Genesis Capital. “That’s where we come in.”

Genesis Capital fills this gap by offering a relationship-driven approach with the flexibility and responsiveness demanded by today’s market. While the traditional bank model relied heavily on personal connections, Genesis builds on that ethos, delivering the same trust  with faster execution and more tailored solutions.

Genesis Capital’s Distinct Model: Institutional Strength, Sponsor-First Focus

Genesis Capital brings a unique combination of institutional-grade capital and a sponsor-first mindset to the residential real estate market. The firm is recognized for its deep expertise across all residential asset classes — including fix and flip, single-family rentals, ground-up construction, homebuilder financing, build-to-rent and multifamily bridge and construction loans — spanning from affordable to luxury product types.

A commitment to working with top-tier professional operators and real estate investors sets Genesis apart; the firm supports a select group of experienced local, regional and national homebuilders who have demonstrated strong track records and commitments to quality execution.

Genesis doesn’t measure success by transaction volume alone. Instead, it prioritizes long-term relationships and sponsor satisfaction, as reflected by its 85 percent repeat client rate. This loyalty is a testament to the firm’s ability to deliver consistent, reliable capital and strategic support across market cycles.

Every project is approached with a solutions-oriented mindset. Genesis understands that no two deals are alike, especially in construction, development and renovation. The firm structures financing to match the unique needs of each borrower and the specific risk profile of each project, offering the flexibility and creativity required to bring complex deals to life.

“We finance the full life cycle, from land to lease-up, flip to final certificate,” said Nate Trunfio, the chief strategy officer at Genesis Capital. “But our real product is helping great sponsors scale.” 

Flexible Capital, Structured for Scale

In today’s market, speed and certainty are essential. Genesis Capital delivers both, along with the strategic structuring needed to help sponsors grow. Revolving credit lines and prestructured terms provide borrowers with predictability and confidence, while the firm’s focus remains on aligning with the right sponsors rather than chasing fleeting market trends.

Genesis leverages proprietary data, deep market intelligence and cutting-edge technology to make fast, informed underwriting decisions. It designs its loan structures to accommodate a wide range of residential models, including multifamily communities and manufactured housing.

“Flexibility doesn’t mean looser credit; it means structuring for how real estate really works — and that starts with understanding our sponsors’ strategies” said Bleyle.

A Capital Partner That Grows With You

Genesis Capital isn’t a one-and-done lender. It’s a long-term partner that evolves with its sponsors, offering capital solutions that scale alongside ambitions.

Genesis Capital has long led the way in asset-based finance, structuring capital around the full life cycles of residential real estate assets. This approach includes pairing capital strategically, sizing leverage appropriately, managing servicing with precision and defining exit strategies upfront. It’s a model built for portfolio resilience and long-term performance, and plays a key role in the broader strategy of its parent company, Rithm Capital.

The firm’s capital strength hinges on a diversified structure that includes rated securitizations — one of several strategies that enhances its ability to deliver competitive pricing. These securitizations have opened access to a broader pool of institutional investors, enabling Genesis to pass on lower capital costs to borrowers. This flexibility helps bridge the pricing gap that often exists between banks and private credit.

In 2024, Genesis originated $3.65 billion in loans and was recognized as BTR and Construction Lender of the Year and SFR Securitization of the Year by Information Management Network (IMN). The firm also closed two of the industry’s largest rated residential transition loan securitizations, totaling nearly $1 billion.

“Our borrowers know we’re a constant, even when the capital stack changes,” said Arrowsmith. “That’s a rare thing in this market.”

The New Normal in CRE Finance

Private credit is no longer a fallback, but the first call for top-tier sponsors. Genesis Capital believes this shift is not temporary, but a durable evolution in how real estate is financed. While today’s market presents challenges, it also offers unprecedented opportunities for those prepared to act.

“We’re not just filling a gap — we’re building what the future of real estate capital should look like,” said Trunfio.

What Today’s Market Demands

Today’s developers and investors don’t only need a lender; they also need a capital partner they can trust. In a market full of friction, Genesis delivers speed, certainty and strategic structure. The opportunity is massive — but execution is everything. That’s why the most successful sponsors are turning to Genesis Capital.