As a borrower, you may be curious about your options in securing a loan for your commercial mortgage, to grow your real estate investments, and to fund your projects and goals, but what other choices do you have other than a bank? There are private lenders to consider, and they hold more advantages over non-bank lenders in more ways than one, but are they safe? Private lenders can provide loans for almost any type of property, whether it’s a single-family dwelling, multi-family residential, a plot of land, or for commercial purposes.
What are Private Lenders?
It may seem too good to be true: timely loan approvals, malleable payment terms, and attractive rates, but with a private lender, you still have the same security as you would with a bank or other standard lender. The same laws and practices that govern those that are done with banks and other traditional financers secure loans, but the differences are simply that these private lenders choose to lessen the severity of qualifications on the borrower to make the loan process more streamlined. Privacy and security are not sacrificed with a private lender, as they are still bound by law to follow all of these essential lending guidelines. Not only does this protect the borrower, but it also protects their position as a private lender, too.
With private lending, you could seek funding from different sources like family or friends, professional and personal acquaintances, or lastly, from accredited investors and hard money lenders. For a non-bank commercial mortgage, there’s a good chance that you will be receiving your loan from a private investor or hard money lender as they are typically involved in large scale projects and investments that require equally large loan amounts to finance.
These are third-party lenders, and they have a long list of credentials and involvement in financing commercial projects. Private lenders will have a lengthy resume and history of community involvement with several clients, ensuring that they are experienced and serious about their involvement in financing non-bank commercial mortgages among other financial needs.
Private Lender Offers
Private money lenders can offer short-term loans for non-bank commercial mortgages. For instance, a private money lender is an ideal choice for a borrower looking to fix up and proceed to flip a home within a short amount of time—say, about a year’s time to purchase, renovate, and then sell the home. Both short-term and long-term investors who need financing quickly can seek out a private lender for a hard money loan or a bridge loan instead of a bank because the approval process is drastically shorter with less demanding qualifications. Loans can be obtained in a matter of days instead of a bank’s lengthy, sometimes weeks-long process.
Finding Private Lenders
Reputable private money lenders can be found online. Larger firms with private lenders will have all of their contact information listed on their site, their general or standard rates for various loans, and full descriptions on the services and types of financing they offer. The best private money lenders are the most transparent, verified by clients and other businesses, and trusted by the community.
Typically, can apply for a private money loan for a non-bank commercial mortgage with a private lender on their website via a submit form, or by calling them directly. Gelt Financial has financed 10,000+ deals since 1989. The more financing you do with a private lender, the quicker and easier the loan process will be, as a trusted relationship will develop and the financing process will go even more smoothly.
Contact Gelt Financial today for your bridge loan needs!