The For-Sale Housing Blind Spot: The Institutional Case for Financing Homeownership - Tony Avila - Founder @ Avila Real Estate Capital

Dec 19, 2025

Tony Avila, Founder and CEO of Avila Real Estate Capital, shares his extensive experience in residential land development and homebuilding finance. He discusses the evolution of institutional investment in homebuilding and the shift in risk dynamics post-financial crisis. Avila delves into how traditional banks have backed away from land and construction lending, creating opportunities for private capital. He also explains the nuances of underwriting land loans and highlights the importance of housing affordability in today’s market.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Unlevered Land Loans Beat Land Banking

Avila focuses on making unlevered land development loans that target high-teens project returns.
They avoid owning land or layering debt on land, differentiating from traditional land bankers.

ANECDOTE

From Family Apartments To Homebuilder Investment Banking

Tony began working on his father's apartments in 1981 and later joined the Federal Home Loan Bank during the S&L crisis.
He moved into homebuilding investment banking and advised many public and private builders on capital and M&A.

INSIGHT

How Homebuilding Became Institutionalized

The institutionalization of homebuilding began after the 1980s with public listings and project capital from institutional investors.
Pension funds, private equity, and large firms started providing project-based capital and enabling consolidation.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

In this episode of The Distribution, Brandon Sedloff sits down with Tony Avila for a detailed discussion on the evolution of residential land development and homebuilding finance. Tony walks through his multi-decade career, from early exposure to real estate and investment banking to building platforms focused on capital solutions for developers and regional homebuilders. The conversation explores how institutional capital, regulatory shifts, and interest rate cycles have reshaped the housing ecosystem, and why today’s environment presents a distinct opportunity in land and construction lending. Together, they break down the mechanics behind land development loans, underwriting discipline, and the structural gaps left by traditional banks.

They discuss: • Tony Avila’s career path through real estate workouts, investment banking, and homebuilding M&A • The institutionalization of homebuilding and the role of public markets and consolidation • Distressed land and development opportunities following the financial crisis • Why banks have pulled back from land and construction lending and how private capital is filling the gap • The fundamentals of land development loans, underwriting risk, and housing affordability

Links:

Tony on LinkedIn - https://www.linkedin.com/in/tony-avila-8879487/

Avila Real Estate Capital - https://www.avilacapllc.com/

Brandon on LinkedIn - https://www.linkedin.com/in/bsedloff/

Juniper Square - https://www.junipersquare.com/

Topics:

(00:00:00) - Intro (00:01:41) - Tony Avila's background and career (00:06:03) - The evolution of home building and institutionalization (00:08:46) - Mergers, acquisitions, and public listings (00:12:39) - Encore and distressed market opportunities (00:17:41) - Pivoting strategies in a changing market (00:20:01) - Current business structure and focus (00:24:58) - Understanding the fundamentals and opportunities (00:27:14) - Understanding land development loans (00:28:54) - Key considerations for land loans (00:30:43) - Distinguishing developers from builders (00:32:21) - Funding and underwriting strategies (00:39:35) - Navigating institutional capital (00:48:55) - Addressing housing affordability (00:53:16) - Conclusion and contact information