Zack Simkins, Managing Director, Vaster

In an interview with Invest:, Zack Simkins, managing director of private lender Vaster, explained how private credit has stepped in as traditional banks have pulled back from aggressive real estate lending in markets like Miami. By focusing on agile underwriting, close borrower relationships, and disciplined risk management, Vaster helps keep development pipelines and high-value transactions moving even in a more cautious environment. “It keeps things afloat. It keeps the engine moving in the right direction, and that’s what Vaster really does — it provides flexible capital,” Simkins said.

What are the core advantages of private money lending versus traditional bank financing in today’s real estate market?

The biggest advantage is the ease of the transaction. Getting a traditional loan has become difficult for both foreign and domestic borrowers. Banks now have strict underwriting requirements, more conservative valuations, and often require an existing relationship plus substantial deposits — they want you to commit capital to them before they’re willing to extend capital to you. If you don’t already have that relationship, along with a detailed business plan or a long track record, banks may hesitate to lend.

After COVID, as rates rose, the issue wasn’t just the rate environment. Many banks had become overleveraged and overexposed to real estate during a period when money was cheap and lending was aggressive. As they pulled back, the need for financing didn’t disappear. Developers, investors, and even homebuyers still needed to buy, sell, refinance, and build. That’s where private lenders stepped in to fill the gap.

In Miami, you’ve seen this play out across the condo market, spec single-family homes, and ongoing resale activity in condos, townhomes, and houses. Many of those transactions — when they weren’t all cash — have been powered by some form of private credit. That has helped keep the market functioning, transactions moving, and overall stability in place. It gives borrowers an alternative when the market softens or when fewer traditional lenders are willing to provide debt. It keeps things afloat. It keeps the engine moving in the right direction, and that’s what Vaster really does — it provides flexible capital.

How does Vaster adapt its underwriting and risk assessment across different asset classes?

Every asset class has its own underwriting criteria; you can’t underwrite a vacant land deal the same way you underwrite a condo resale. One of the advantages of private lending is that we can adapt to the specifics of the asset and, just as importantly, the story behind the deal. We always ask: What is the borrower trying to do? Why are they coming to Vaster for a loan? How will they execute on their plan?

For commercial land, for example, we may be looking at sites that will be upzoned or repositioned for higher and better use. That could mean future condo development, a mixed-use project, or a project that leverages programs like the Live Local Act, where you might see ground-floor retail, an affordable housing component, and multifamily in a single project. That requires extensive market study, a strong understanding of entitlements and zoning, and a clear view of the developer’s strategy.

Condos are more straightforward from a valuation standpoint. We look at comparables within the project and the submarket, but we also need to understand pre-construction and development timelines — when contracts were signed, when closings are expected, and whether values have moved since those contracts were put in place.

Single-family homes and spec construction add another layer. You’re not just assessing recent neighborhood sales; you’re also evaluating construction costs, acquisition price, the borrower’s track record, and their exit strategy. Across all of these asset types, the common denominator in our underwriting is the story: who the borrowers are, what they intend to do, and why they are likely to be successful. If those elements check out, Vaster can step in as a true debt partner rather than just a commodity capital provider.

What specific challenges and opportunities arise when financing foreign investors compared with domestic investors?

For foreign investors, the biggest challenge is usually comfort with documentation and process. Traditional banks often require the same — or more — documentation from foreign borrowers as they do from domestic ones. Our South American clients, for example, place a high value on relationships. They want a lender who will take the time to understand their story, their business, and their track record, and then ask only for the key documents needed to get comfortable.

At Vaster, we still conduct thorough underwriting, but for foreign nationals we’re more focused on the underlying asset, along with a clear picture of liquidity and track record in their home country. If a borrower can demonstrate strong liquidity or a solid track record, we can factor that into our credit decision without forcing them through an onerous process. The goal is simplicity and common sense, not unnecessary friction.

Domestic borrowers are generally more accustomed to a traditional checklist: credit checks, FICO scores, tax returns, bank statements, pay stubs, and so on, especially for larger loans. We may request some of that depending on the situation, but again, we focus on the story — the asset type, where they are in the process, their profile, and any prior legal or financial challenges.

The main difference comes down to expectations. Foreign borrowers often come to us specifically because they want a more relationship-driven experience and a more pragmatic approach. Domestic borrowers may be more willing to provide documentation, but they sometimes need more education on why private credit can make sense even if it appears more expensive at first glance. Once they understand the value of speed, certainty, and flexibility — along with the ability to borrow at higher loan amounts than many banks will offer — they see the opportunity.

Speed is critical in markets like Miami and New York. How do you balance fast execution with due diligence and risk management?

Balancing speed and prudence is more of an art than a science. You can put all the processes and protocols in place, but ultimately it comes down to execution and experience. At Vaster, a typical deal can close in about two weeks or less. If someone comes to us with a 60-day closing, we might tell them to call back closer to the deadline, because there has to be a real sense of urgency for private capital to make economic sense.

Our rates and fees are higher than a traditional bank’s, so borrowers need to be engaged and responsive. We can only move as fast as borrowers are willing to work with us. What we don’t do is compromise our risk standards or underwriting criteria. We still meet all KYC requirements, maintain strong compliance, and ensure our loan documentation and credit work are sound.

We’ve built tools and processes — including the use of technology — that allow us to streamline workflow without cutting corners. There are checks and balances throughout the life of the file: originators, processors, third-party attorneys, closers, compliance officers, and underwriters all touch the deal before it funds. Because we’ve completed so many transactions and know our markets, values, and risk parameters well, we can move quickly while still feeling confident about both the asset and the borrower.

Vaster offers up to 65% financing with interest-only, short-term loans. How does that structure support investors?

In South Florida, our home base, price points are high. A $20 million sale that once felt extraordinary has become relatively common in certain neighborhoods. There’s limited supply of premier waterfront and core locations, and as Miami’s culture, economy, and commercial sector have grown, the residential market has grown alongside them. High-end residential activity has also driven new retail, entertainment, and multifamily development as demand continues to expand.

In that environment, conventional mortgages often come with loan size caps. Even portfolio or non-QM loans usually top out at a certain level. To secure a $5–$10 million loan from a bank, you typically need a deep, established relationship — and even then, the bank will scrutinize your entire financial picture. Many senior executives or prominent foreign nationals who simply want a second home in Miami don’t have the time or desire to go through that process.

Our average loan is around $4 million at roughly 60% loan-to-value, and we’ll go up to 65% when the asset and borrower profile justify it. We tend to attract sophisticated investors who understand leverage. They know that taking 65% LTV at a higher rate can create negative leverage if you’re not careful, but they understand the trade-off: for roughly 200–300 basis points over bank pricing, they gain speed, flexibility, and certainty.

For many clients, the private loan serves as a bridge — to a more stable market, to a future bank take-out, or to a liquidity event that allows them to pay us off. If you can close in two weeks with Vaster instead of waiting 60 days for a bank, you’re not just comparing interest rates. You’re valuing the ability to secure a scarce asset, act on other opportunities, and protect or grow your portfolio. That’s where this structure really shines.