PRIVATE COMMERCIAL REAL
WHAT ARE PRIVATE COMMERCIAL REAL ESTATE LENDERS?
• Definition of Private Commercial Real Estate Lende rs : Non-bank institutions or individuals offering loans for commercial real estate.
• Purpose: Provide fast, flexible capital when traditional financing falls short.
• Who They Serve: Investors, developers, and business owners.
COMMON USE CASES
• Purchasing distressed commercial properties
• Bridge loans while awaiting long-term financing
• Refinancing when banks decline
• Funding value-add property projects
• Fix-and-flip or fix-and-hold investments
TYPES OF LOANS OFFERED
• Bridge Loans: Short-term, quick-close solutions
• Hard Money Loans: Asset-based lending
• Mezzanine Loans: Hybrid of debt and equity
• Construction Loans: For ground-up or redevelopment projects
• Stated Income Loans: Ideal for self-employed borrowers
BENEFITS OF PRIVATE LENDING
• Fasterapprovalandclosing
• Greater tolerance for credit or documentationissues
• Tailored underwriting based on assetpotential
• Relationship-based decisions, not algorithmic
RISKS & CONSIDERATIONS
• Higher Interest Rates (typically 6%–12%)
• Shorter Terms (1–3 years)
• Points and Fees may be higher than banks
• Due Diligence Required: Evaluate lender credibility
CONCLUSION & KEY TAKEAWAYS
• Private lenders play a crucial role in CRE financing
• They offer speed and flexibility but at a higher cost
• Ideal for investors needing creative, fast solutions
• Always perform due diligence before partnering
