4 Reasons To Prefer A Private Lender For Your Commercial Mortgage

Need a flexible financing option for your commercial mortgage? Private lenders don’t impose the same stifling requirements as traditional financial institutions.

The reasons that a company may take out a commercial mortgage are fairly typical across the board, revolving around plans to acquire, develop or refinance a real estate asset. The terms and conditions necessary to make this loan feasible for both parties, however, will differ greatly between projects. In fact, there are many projects that may turn off traditional lenders like banks and development firms. In cases like these, your company has an opportunity to work with a private lender to help finance a big real estate move.

There are a long list of reasons that a trusted and experienced private lender is an ideal source of financing for a commercial real estate acquisition or development. Look over the following advantages and strongly consider how working with a flexible private lender could create new opportunities for your business.

1. Your Company’s Revenue Streams Aren’t Guaranteed – Maybe your company’s revenue streams are highly seasonal or your company is succeeding on a contract-by-contract basis. This may be working out for your company, but this business style makes it difficult for a traditional lender to make predictions about your long-term success. Banks prefer going with a sure thing. Thankfully, private lenders are more willing to work with borrowers to make a deal.

2. Traditional Lenders Are Unfamiliar With Your Niche – When traditional lenders are unfamiliar with an industry, they may have less confidence in a company’s ability to pay back a loan. As a result, the mortgage terms that a niche business are offered may be less generous or favorable than those offered to a known entity. Most private lenders are free of these preconceived notions, making them an ideal financing partner for niche business owners.

3. Business Credit Is Still Recovering – It’s not uncommon for companies to hit the occasional roadblock that leads to a dip in their credit score. A one-time mistake or error in judgement shouldn’t prevent your company from getting the funds it needs to do business. Even if your company’s credit score is not at its best, private lenders are more willing to qualify borrowers that can demonstrate a way to pay back the loan in the future.

4. You’re Looking To Sell Quickly – Does your business have an opportunity to invest and flip a commercial property within few months? What about few weeks? In cases like these, working with a traditional lender can be difficult. Private lenders, on the other hand, often specialize in reasonable, short-term loans. Finding financing this way is a much quicker way to go, which may be necessary to pull the trigger on a time-sensitive investment.

Private Lenders Can Help Streamline Your Commercial Mortgage Process

Need to get to work on your company’s next development project immediately? Working with a private lender to finance your commercial mortgage allows you to avoid many of the tedious hoops required by traditional lenders.

The right private lender will offer you flexible terms that put your business in an advantageous position.

Don’t let a great commercial real estate opportunity pass your company by, even if you’re recovering from credit issues or short on existing capital. Find the right private lender that can open up new doors for your company.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years. 

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