If you are looking for a loan, struggling through the requirements set by a bank, credit union, or another financial institution can be the least efficient path. Luckily, private lenders exist for this exact reason. According to the National Association of Realtors, commercial sectors include large buildings that are valued at over $2.5 million. Whether you are looking for a commercial or residential property loan, here are four reasons why a private lender is a better option for you.
1. Poor Credit Score
If you have a poor credit score, getting approved for commercial real estate loans can be difficult, but private real estate loans are a viable alternative for those seeking funding for commercial properties. While private real estate loans may come with higher interest rates, they offer more flexibility and a faster turnaround time than traditional commercial real estate loans. Additionally, private lenders may be more willing to work with borrowers who have less-than-perfect credit or financial histories.
2. Urgent Need for Funding
While a private real-estate loan can provide fast access to funding, it’s essential to ensure that you can comfortably manage the loan’s repayment terms. This means taking a close look at your budget and financial situation to determine if a private real-estate loan is the right choice for you. You may also want to consider alternative options, such as a personal loan or credit card, depending on your specific needs and circumstances.
3. Unique Property Type
Commercial real estate loans are often unavailable for unique property types, such as historic buildings or properties with unusual zoning regulations. Private real-estate loans can be a great option for those with unique property types, as private lenders are often more flexible and willing to take on unconventional projects. To increase your chances of securing a private real-estate loan, it’s important to present a clear plan for your property and demonstrate its potential value.
4. Investment Properties
Investment properties can be a great way to build wealth and generate income, but they can also be expensive to finance with commercial real estate loans. Traditional lenders may be hesitant to finance investment properties, which can make it difficult to secure the funding you need. Private real-estate loans can be a viable option for those looking to invest in real estate, as they often have more flexible terms and requirements.
By understanding the signs that suggest a private real-estate loan may be preferable, you can make an informed decision to obtain financing for real estate of any value. Contact our team at West Coast Commercial Capital LLC today if you are interested in our services.