HOW TO SEAL THE DEAL WITH A PRIVATE MONEY COMMERCIAL REAL ESTATE LENDER

If you’re a property investor or are looking to break into the market but have an unconventional situation or an unconventional opportunity that banks are closing their doors on, a private money commercial loan could be exactly what you need to get things over the line. Instead of using a traditional bank or financial institution to fund your commercial real estate purchase or rehab project, you can finance with private funds from an individual or private company like Alpha Funding.

WHAT IS PRIVATE MONEY?

Private money is typically a private loan through an individual or organization intended to facilitate the purchase or renovation of an investment property – or often even both. Private money loans are secured with a mortgage against the real estate and typically come with non-traditional qualifying guidelines, less paperwork and fewer regulations. Whilst a private money loan is known as a loan acquired through someone you have an existing relationship with, the term is also used interchangeably with “hard money”, meaning a loan with a firm that lends private money rather than government-backed securities. Accordingly, you’ll be able to work with direct commercial lenders and do not need to rely on friends or family members.

A private money loan is generally a short-term loan ideal for commercial property flippers or investors with short-term plans such as those who intend to purchase, renovate and resell as well as investors wanting to purchase land to build a commercial property on. It’s also a key strategy for many buy-and-hold investors too, who, for example, might use private money as a “bridge loan” to purchase or rehab a commercial real estate investment when a traditional bank deems the property too risky.

WHY SHOULD YOU CHOOSE PRIVATE MONEY FOR COMMERCIAL PROPERTY?

Unlike financing through a bank, private money lenders offer incredible flexibility designed to meet your needs. The terms vary widely and the qualifying criteria is completely at the discretion of the private lender. Generally, however, the loan is tied to the asset which means things like poor credit ratings and a currently unstable situation won’t necessarily be deal-breakers. You can also secure a loan for a property with a higher loan to value ratio and private money loans can be secured much faster than traditional finance, allowing you to get access to the money you need as soon as you need it. This means you won’t have to miss out on an opportunity that’s too good to turn down and can move on to your next investment much faster.

Plus, working with the right private lender means finding someone who shares your vision and believes in your goals as much as you do. Particularly at Alpha Funding, we genuinely care about our clients and structure our deals with your unique strategy in mind. With over forty years of experience and a team of highly skilled principals and executives, we know the ins and outs and risks of commercial property investment and, accordingly, your loan will be tailored to the full picture.

Rest assured that whilst private commercial real estate lenders are not restricted by banking regulations, we do need to comply with lending laws. So, you can relax knowing that you’ll be kept in good hands when you choose to borrow money through one of the best commercial private money lenders like Alpha Funding.

WHEN IS PRIVATE MONEY THE BETTER OPTION?

Private money gives you access to opportunities you might not otherwise even be able to consider. Though private money loans generally attract higher interest rates, there are a number of circumstances in which private money is a very appealing option, and sometimes even your only option. For instance, a private commercial real estate loan is ideal if:

• You need financing quickly and can’t wait for a bank whose processes can take up to six months
• You’re looking for a short-term solution, such as a commercial bridge loan or a short-term loan to finance a property you intend to fix and flip, or fix for the purpose of enhancing business that a bank, therefore, wouldn’t be able to see the true value of
• The property you are purchasing is too unique for a bank to consider
• The property you are purchasing needs too much work for a bank to consider
• The transaction is too complicated for banks to consider
• You are not a citizen and therefore don’t have “credit depth”
• You’re trying to restructure your debt to avoid foreclosure
• You had traditional financing but it’s fallen through before closing and you need an immediate alternative solution

If any of these circumstances sound a lot like yours, getting in touch with a private money lender specializing in commercial real estate like Alpha Funding could be life changing.

WHAT CAN YOU USE A PRIVATE COMMERCIAL LOAN FOR?

Private commercial money loans are available for a broad range of commercial property types. For instance, at Alpha Funding, we offer private money loans for:

• Restaurants, hospitality and leisure venues
• Condominiums
• Automotive sites
• Office buildings
• Churches
• Schools
• Gas stations
• Mobile home parks
• Self-storage facilities
• Industrial buildings
• Special-use properties
• Retail buildings

READY TO FIND THE PERFECT PRIVATE MONEY LOAN FOR YOUR COMMERCIAL INVESTMENT?

If you’re looking for a private lender for real estate, Alpha’s financing has you covered. As private money lending is one of our specialties, we’re a top private money lender offering private commercial loans for a huge range of purposes. We have extensive experience and work with borrowers nationwide, offering competitive rates and terms for private money loans between 12 and 36 months.

To find out more about Alpha Funding and our favorable private commercial real estate loans, click here or get in touch with our friendly team today.