One option for mortgage loans comes in the form of commercial mortgage loans, which use commercial real estate as collateral. However, individuals can not get these loans, which are reserved for various types of businesses and then, private commercial mortgage loans appear.

Privately funded commercial mortgage loans are becoming increasingly popular during this mortgage meltdown. By some estimates, bank lending against commercial property has dropped off by more than 80%. Many rejected borrowers will look to private lenders. That means thousands and thousands of good deals are out there, and every one of them is competing with you for a lenders time, attention and money. As a result, these days, private commercial mortgage lenders are busier than ever today.

Private lenders, many funded by wealthy individuals, hedge funds or other large pools of capital, often lend their own money for their own portfolios. These unique lenders have not been crippled by the breakdown of the collateralized mortgage bond market. They can still originate loans at will without worrying about who may or may-not want to buy them.

What’s more, private loans can close in just days, as-opposed to conventional loans which, if you get one at all, can take 3 months or more to fund.

There are generally no loan committees, stacks of paperwork or complicated ratios to deal with. If they like your deal and you demonstrate that you can pay them back, they can and will close your loan no-matter-what wall street is doing.

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