By Anita Winkles, General Manager, On Top Funding
You’re looking for capital. Maybe it’s for a fix-and-flip, a rental acquisition, a ground-up build, or a commercial deal you need to close in the next 30 days. You’re searching for the right lender, the right terms, and the right timeline. And then you see a headline saying JPMorgan just committed $50 billion and Bank of America another $25 billion to “private credit” and you think: where is all this money, and why is it still so hard to fund my deal?
That’s the right question. The answer matters, because the gap between what these headlines say and what they actually mean for real estate investors could cost you time, money, or both.
This article breaks it down: what’s actually happening with bank capital in 2026, why most of it isn’t flowing where you think it is, and what you can do right now to position yourself for the capital that is available for your deals.
What Is Private Credit? (And Why It’s Not What Most Real Estate Investors Think)
Before going further, it’s important to understand what “private credit” means in this context, because it’s not the same as private money lending.
In real estate investing circles, “private money” usually means an individual lender, someone with capital who funds deals directly, often secured by real property. That’s the private lender you meet at a local REI meetup who funds your rehab or bridge loan based on the asset and the relationship. That is not what these headlines are about.
When Wall Street and the financial press say “private credit,” they’re referring to an institutional asset class: large-scale lending done outside of traditional bank loans and public bond markets. Think Apollo, Blackstone, Ares, KKR, and Blue Owl, billion-dollar fund managers that raise capital from pension funds, insurance companies, endowments, and wealthy institutions, then deploy it as loans to mid-size and large corporations. The borrowers are typically companies doing $50 million to $500 million or more in annual revenue.
So when you read that Bank of America committed $25 billion to “private credit,” that capital is being deployed through institutional fund platforms. That capital is not going into a pipeline where a real estate investor can access it for a duplex acquisition or a fix-and-flip.
Understanding this distinction changes how you interpret every headline about capital availability. The capital referenced in these articles exists in a different ecosystem than the one most real estate investors operate in.
The Numbers Are Real, But the Context Is Often Missing
U.S. banks earned a combined $295.6 billion in profits in 2025, according to FDIC data, the highest on record. Net interest margins improved to 2.99%, lending grew by roughly $750 billion, and delinquency rates actually declined. The four largest banks accounted for approximately 40% of those profits.
The scale of private credit commitments is significant. Federal Reserve Bank of Boston research found that large banks’ total loan commitments to private equity and private credit funds grew from roughly $10 billion in 2013 to $300 billion by 2023, a 30x increase in a decade. As of early 2026:
- Bank of America committed $25 billion to private credit deals
- JPMorgan committed $50 billion to direct lending
- Wells Fargo launched a middle-market direct lending partnership with Centerbridge
- Goldman Sachs created a dedicated private credit division within its asset management arm
The private credit market itself has grown to roughly $1.8 trillion in assets under management.
These are real numbers. But what the headlines leave out is where this capital actually flows, and who it serves.
What the Headlines Don’t Tell Real Estate Investors
When you see “banks pouring billions into private credit,” it’s natural to assume more money is available for your next flip, rental acquisition, or commercial project. That’s not what’s happening.
The majority of this capital flows between institutions. Banks lend to private credit funds, including business development companies, direct lending platforms, and fund vehicles, which in turn lend to middle-market corporate borrowers. As the Federal Reserve Bank of Boston noted in its 2025 research, the relationship between banks and private credit funds is deeply intertwined: banks lend to funds, funds lend to end borrowers. There are layers of intermediation, underwriting criteria, and fund-level strategy between the headline number and the loan on your property.
Bank of America’s $25 billion is being deployed through its investment banking platform and global capital markets division. JPMorgan’s $50 billion targets leveraged finance and corporate direct lending. These are institutional-grade transactions, not loans to individual real estate investors.
This doesn’t mean the macro trend has no effect on real estate lending. It does. But the effect is indirect and uneven, and understanding that distinction puts you ahead of most investors who are misreading these headlines.
How Private Credit Growth Actually Affects Real Estate Investors in 2026
The downstream effects are real, but nuanced:
Competitive pressure can improve terms at the upper end
When banks compete with alternative lenders for quality institutional deals, it creates downstream pressure across the lending ecosystem. Some of that competitive pressure reaches the private money and hard money lenders that real estate investors work with directly, though the effect is indirect and uneven.
Non-bank lending has become a permanent feature of the capital markets
The growth of institutional private credit has legitimized non-bank lending at scale. This is good news for real estate investors who rely on private money, bridge loans, DSCR products, and other alternative capital sources. The infrastructure supporting these products is stronger than it was five years ago, and there’s more institutional backing behind many of the lenders investors work with today.
The cost of capital hasn’t dropped just because there’s more of it
This is the part most articles skip. Rates remain elevated. Underwriting standards on bank loans have tightened. The FDIC reported that commercial real estate past-due rates at banks with over $250 billion in assets were 4.18% as of Q3 2025, down from a peak of 4.99%, but still far above the pre-pandemic average of 0.59%. Lenders at every level are being more selective, not less.
More capital in the system does not mean easier access to that capital. It means more sophisticated competition for quality borrowers.
The Real Bottleneck Isn’t Capital Availability: It’s Borrower Positioning
Capital availability is not the primary bottleneck for most real estate investors. Positioning is.
The investors who consistently access capital, whether from private lenders, hard money sources, SBA programs, or commercial banks, share a few things in common. They understand what type of capital fits their deal before they start shopping. They present clean financials, realistic projections, and a clear exit strategy. They negotiate structure, not just rate. And they build lending relationships before they need them.
The investors who struggle are the ones who hear “$300 billion in private credit” and assume the market is waiting for them. It isn’t. The market is competitive, and lenders at every level are choosing borrowers as much as borrowers are choosing lenders.
How Real Estate Investors Can Position Themselves for Available Capital
Know your loan product before you apply
Private money, hard money, DSCR loans, bridge loans, SBA 7(a), SBA 504, and conventional commercial: each has different qualification criteria, timelines, and cost structures. Applying to the wrong product wastes time and can create unnecessary credit inquiries. The right product match starts with understanding the structure of your deal, not just your financing need.
Get your documentation lender-ready before you need it
Tax returns, entity documents, personal financial statements, project pro formas, and proof of liquidity. Lenders move fast when borrowers are prepared. They move on when borrowers aren’t. Being ready before the deal is in hand is a meaningful competitive advantage.
Negotiate the full structure of the loan, not just the interest rate
Points, prepayment penalties, draw schedules, extension options, recourse provisions, and closing timelines all affect your actual cost of capital and your ability to execute the business plan. Rate is one variable. Structure is the deal.
Work with someone who understands the lending landscape
A commercial loan brokerage with relationships across multiple capital sources can match your deal to the right lender, structure the request properly, and advocate on your behalf. This is especially important in a market where lenders have options and borrowers who present well get better terms.
The capital is out there. The question is whether you’re positioned to access it, or just reading about it.
About On Top Funding
On Top Funding is a boutique commercial loan brokerage specializing in real estate investment loans, including private money, hard money, bridge loans, DSCR and rental loans, SBA programs, and small balance commercial financing. We help real estate investors and commercial property owners find the right capital for the right deal.
If you have a deal that needs the right capital source, visit www.ontopfunding.com or reach out directly. We do what we teach, and we teach what we do.
Sources
- FDIC data compiled by BankRegData: U.S. bank profits, 2025
- Reuters, Bloomberg, Financial Times: Bank of America $25B private credit commitment, Feb. 2026
- JPMorgan Chase: $50B direct lending commitment, Feb. 2025
- Federal Reserve Bank of Boston: Bank Lending to Private Equity and Private Credit Funds, Feb. 2025
- Moody’s Ratings: U.S. banks’ private credit loan exposure analysis, Oct. 2025
- FDIC Quarterly Banking Profile: Q3 2025 industry performance data
- Federal Reserve: 2025 Stress Test Results and Financial Stability Report
- American Banker: BofA sharpens focus on private credit, despite rising fears, Feb. 2026
