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Hundred-dollar notes stacked on a table.

Private Money Lenders Vs. Banks: Who Provides Better Financing Options?

July 28, 2021/in Blog /by Bruce Kent

The financial sector of the US economy plays a contributory role in driving economic growth. The sector mainly consists of two players: private money lenders and banks.

Here’s all that you need to know about the two financing options.

Who Has a Better Approval Rate?

Only 27.9% of small businesses managed to get their loans approved from big banks. This highlights how challenging it is to acquire loans from banks. This is mainly because of the rigorous selection processes that you need to go through in banks and the lengthy loan requirements that they ask for. Private hard money lenders don’t have any strict requirements and are only interested in the value of the property you are willing to give away as collateral for the loan.

Who Provides Quick Financing?

The time it takes to acquire a loan can make or break your business deal. The lengthy processes in traditional banks can make obtaining loans a time-consuming process. Since private money lenders don’t have any rigorous processes, they can ensure quick financing.

Who Is More Flexible?

Banks have a single loan policy that is the same for every borrower. However, private money lenders use the Loan to Value (LTV) policy to assess the loan requirements.  LTV policy means that loan requirements depend on the value of the property you provide as collateral. Furthermore, since private lenders don’t have a fixed policy, they can choose requirements according to your needs.

Final Words

While banks have historically played a big part in the financial sector, private money lenders are becoming the primary source of loans as they are more flexible and provide loans quickly.

A private hard money lender shaking hands with a borrower

Get Hard Money Loans from Private Money Lenders Now

If you have a poor credit history, going to a bank for a loan may be a waste of time. A viable option for you would be to acquire hard money loans. Visit Commercial Private Equity now to get financial hard money consultation. We have been in this industry for over 75 years and provide five types of specialized loans, including commercial hard money, bridge loans, construction loans, raw land loans, and workout loans.

We also offer three levels of loan programs with different loan conditions to cater to as many clients as we can. We also provide other loans, including blanket loans, acquisition loans, and corporate LLC loans.

Reach out to us today for more information.

https://commercialprivateequity.com/wp-content/uploads/Hundred-dollar-notes-stacked-on-a-table..jpg 477 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-28 07:45:132021-07-24 07:48:30Private Money Lenders Vs. Banks: Who Provides Better Financing Options?
hard money loans have a quick approval rate

Everything You Need to Know About Commercial Hard Money Loans

July 26, 2021/in Blog /by Bruce Kent

It’s no secret that banks reject loan applications based on low business credit scores. It is estimated that banks only accept 27.9 percent of loan requests from small businesses. However, these shouldn’t stop you from looking for financial alternatives. One such alternative is a commercial hard money loan provided by private money lenders.

What Are Commercial Hard Money Loans?

Commercial hard money loans are for firms that want quick financing and don’t have the time to improve their business credit. Unlike banks that use income and credit score as a determinant for loans, a hard money lender uses your firm’s assets as collateral.

Types of Properties You Can Use to Acquire a Hard Money Loan

The unique thing about a hard money loan is that it only uses your property as collateral. The types of properties a lender might accept for a commercial hard money loan can differ. Some common types of properties include retail centers, raw land, warehouses, industrial buildings, and offices. The greater the value of your property, the better the loan terms you will get.

Uses of Commercial Hard Money Loans

Investing in commercial spaces can be beneficial for your company. Acquiring the best real estate in town can get you an edge over your competitors. Commercial properties can offer high long-term returns as their asset value gradually increases. If you get a property now, you can loan it out in the future for more financing.

If you have just opened a business and your firm doesn’t have a good credit history, commercial hard money loans can be your shortcut to financing. Furthermore, these loans don’t have strict loan requirements, making them easy to refinance. You can also use commercial hard money for bridge loans. These loans can act as a bridge for you to refinance your existing properties.

A private hard money lender counting dollar bills

Obtain Commercial Hard Money Loans Now

Commercial hard money loans can solve your financial issues. Get commercial hard money loans from Commercial Private Equity now. Our team of experts can help you meet commercial financial objectives through effective hard money loan consultation.

Apart from commercial hard money loans, we also cater to residential hard money loans, construction loans, raw land loans, and workout loans. We have started a loan program with three levels, and each level has different term conditions to cater to as many clients as we can.

Contact us now for more information.

https://commercialprivateequity.com/wp-content/uploads/hard-money-loans-have-a-quick-approval-rate.jpg 416 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-26 07:40:222021-07-24 07:44:06Everything You Need to Know About Commercial Hard Money Loans
Ground view of tall offices that have been acquired through commercial hard money loans

5 Types of Specialized Loans

July 24, 2021/in Blog /by Bruce Kent

Efficient financing can help streamline a lot of things. If your loan application is rejected by banks, you opt for a private hard money lender that can provide you loans based on your property value.

There are many specialized loans that a private money lender can offer. Here are its five types.

Commercial Hard Money

If your business has an average credit score, it may be difficult for you to acquire a bank loan. If you own a property and want to buy more for expansion, you can get a commercial hard money loan to finance your projects. Generally, commercial hard money loans are used to finance short-term projects that require urgent financing as these loans use assets for collateral.

Bridge Loans

If you’re looking to purchase new property but haven’t sold off your existing one,obtaining a bridge loan is the perfect option for you. You will use your property to get the loan and repay once that is sold.

Bridge loans can be used if you need quick financing on an excellent bargain that you don’t want to miss out on.

Construction Loans

Unfortunately, traditional financing doesn’t provide loans for constructing infrastructures such as your home or office. Constructions loans give you a way to finance those projects, and once they are complete, you can take a traditional loan to repay the construction loan.

Ongoing construction work after loan approval

Raw Land Loans

Every business or project starts with the acquisition of raw land. But acquiring raw land can be challenging if you don’t have the finances for it. You can use raw land loans to obtain money for the office space you need to kickstart your business.

Workout Loans

A workout loan is given to individuals stuck in foreclosure situations. If the repayment of a previous loan is challenging for you, then a workout loan can help you.

Get Specialized Loans Now

If you’re looking to get specialized loans, visit Commercial Private Equity. We have been helping our clients get effective loan deals for over 75 years now.

We provide five different types of specialized loans, including commercial hard money, bridge loans, construction loans, raw land loans, and workout loans. Our team of experts also provide hard money loan consultation to help you make an informed financial decision.

Apart from specialized loans, we also provide other loans including, blanket loans, Corporate and LLC loans, and acquisition loans. We also offer a loan program with three levels that cater to all your financing needs.

Contact us now for more information.

https://commercialprivateequity.com/wp-content/uploads/Ground-view-of-tall-offices-that-have-been-acquired-through-commercial-hard-money-loans.jpg 416 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-24 07:39:152021-07-24 07:39:155 Types of Specialized Loans
Ongoing office construction after the approval of a commercial construction loan

4 Things You Need to Apply for a Construction Loan

July 22, 2021/in Blog /by Bruce Kent

The construction industry is one of the most booming industries in the US. It has a contribution of 4.3% in the GDP and has over seven million employees. The main reason why the construction industry has flourished is the favorable economic conditions for investors and ease of financing.

Construction loans are given out by not only banks but private lenders too. Private hard money lenders give out construction loans by taking your property as collateral. However, construction loans can only be acquired if you apply properly.

Here are four things you need to have to successfully apply for a construction loan.

The Construction Plan

A clear and efficient construction plan will facilitate private lenders to give you construction loans. You must provide the hard money lender with all the details of the construction plan. The relation between you and the lender can be strengthened if your construction plan is transparent.

Who Is Constructing the Property?

Constructing your property through a qualified builder can boost your chances of acquiring a construction loan. The higher the integrity of your contractor, the better the chances are of the project finishing on time. When private hard money lenders provide you with a construction loan, they trust you to ensure that the project completes on time to avoid repayment issues.

Estimated Value of The Constructed Property

Many construction loan decisions are based on the value of the property after the construction. You must hire a licensed appraiser to get an estimated value of your property. Many private money lenders use the appraised value to decide loan terms, so the higher the value of your property, the better terms you will receive.

Down Payment

The down payment is usually 20-30% of the total loan amount, but if you’re taking a construction loan from a private hard money lender, down payments are forgone as you provide your property as collateral.

Ongoing home construction after the approval of a residential construction loan

Acquire Construction Loans Now

If you’re looking to construct your property, you may need to get the finances for it. Visit Commercial Private Equity now to get construction loans. We have worked in this industry as a construction loan lender for over 75 years. We also provide other specialized loans, including workout loans, raw land loans, commercial hard money, and bridge loans.

Reach out to us now to obtain construction loans for interest rates as low as 10%.

https://commercialprivateequity.com/wp-content/uploads/Ongoing-office-construction-after-the-approval-of-a-commercial-construction-loan.jpg 480 640 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-22 07:30:102021-07-24 07:35:524 Things You Need to Apply for a Construction Loan
Housing Loan is written using scrabble game tiles

3 Benefits of Taking a Bridge Loan

July 19, 2021/in Blog /by Bruce Kent

Every business needs financing to either grow or to save itself from financial problems. The long wait for loan approvals is over as short-term financing alternatives are here. One such alternative is a bridge loan. They are a great way to buy new properties without having to sell your previous property.

Quick Financing

The real estate industry is one of the hottest industries in the world right now.

If you see an excellent property available, you’ll want to grasp that opportunity quickly. However, traditional financing options can be time consuming, and it may be too late by then. Bridge loans provide a quick way of financing that is usually available in two to three working days.

Assets as Collateral

If you go to a bank for a loan, they would look at your income, credit history, and all other relevant details to make their decision. Providing all the documents can be challenging, and if the loan is not granted even after that, it can be devastating for the borrower.

A bridge loan from a private hard money lender would only require property value that would be used as collateral. The value of the property would determine the loan conditions. As a result, bridge loans can be an effective way for you to acquire a loan if you have a low income and below-average credit, but possess valuable property.

Multiple Properties for One Loan

For a bridge loan, several types of properties can be taken as a security, including houses, flats, shops, commercial units, farms, lands, and many other properties. This increases the number of people that are eligible for loans. Furthermore, multiple properties can also be used as security to get more financing.

An individual showing 100-dollar notes

Get Bridge Loans Now

If you’re looking for short-term financing, a bridge loan is the best solution for you. Visit Commercial Private Equity now to get expert financial consultation on bridge loans. We have been providing proficient loan deals in this industry for over 75 years now. We use your assets as collateral and strive to provide you with the lowest interest rates possible.

Apart from bridge loans, we offer various loans for our clients, including construction hard money loans, commercial hard money loans, private equity, and many others. We also offer three different loan programs to cater to as many clients as we can.

Reach out to us today for more information.

https://commercialprivateequity.com/wp-content/uploads/Housing-Loan-is-written-using-scrabble-game-tiles.jpg 351 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-19 10:40:562021-07-19 10:40:563 Benefits of Taking a Bridge Loan
private money lenders can help finance real estate properties

3 Reasons Why You May Need a Bridge Loan

July 17, 2021/in Blog /by Bruce Kent

The US economy is one of the largest economies in the world. One of the reasons why it has reached such massive heights is the ease with which financing is available. Commercial banks up till June 2021 granted loans that reached a value of 15.5 trillion dollars. However, banks are not enough to finance businesses in the US, and the gap is filled by private hard money lenders who provide specialized loans. One kind of specialized loan is a bridge loan that uses your assets as collateral for the loan. Here are three reasons why you may need it.

A Bridge to Shift to Another Property

Bridge loans can be useful for you if you want to buy a property before selling your existing one. The competitiveness of the real estate industry calls for such measures as every opportunity to buy a property needs to be grabbed to beat competitors. Bridge loans can act as a bridge until your current property is sold off after which you can repay the loan.

Facilitates Auction Buying

Auctions can be a way for you to buy hidden gems that are often missed out in general transactions. However, you can only buy in an auction if you have the cash in hand. Usually, a down payment is required right after the auction, and the remaining payment needs to be done in a short time frame, depending upon the amount. Bridge loans can be a way for you to acquire financing to complete any auction deal.

Assistance in Obtaining Short-Term Financing

There are instances when there’s a great deal on a property, and you may not have the finances to buy it. In these circumstances, you’ll want to exchange your existing properties for the deal. Bridge loans are a way to use your properties for financing. Unlike bank applications that require you to show your income, credit scores, and other details, bridge loans are a way of obtaining quick financing as the only requirement you need to fulfill is to have valuable property.

One-dollar bills

Acquire Bridge Loans Now!

If you’re looking to get bridge loans, Commercial Private Equity is the company to visit. We have been working as a private hard money lender in this industry for over 75 years. We provide efficient bridge loan deals for you to acquire any property you like with ease.

We also offer other specialized loans, including construction hard money loans, commercial hard money loans, raw land loans, workout loans. We also have a loan program with three levels that provide you with different interest rates and terms.

Contact us now for more information.

https://commercialprivateequity.com/wp-content/uploads/private-money-lenders-can-help-finance-real-estate-properties.jpg 469 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-17 06:10:192021-07-16 06:14:343 Reasons Why You May Need a Bridge Loan
An individual thinking about which lender to select sitting in front of his computer

3 Things You Need to Consider Before Choosing a Private Hard Money Lender

July 16, 2021/in Blog /by Bruce Kent

Commercial banks in the US had granted 15.5 trillion-dollar in loans till June 2021. Even this massive amount is not enough to cater to the robust US economy. As a result, people turn to private hard money lenders. Individuals who have a below-average credit score are likely to be rejected by a bank on their loan application, and that’s why they turn to private hard money lenders. Here are three things you need to consider before selecting a private hard money lender.

Experience And Reputation

Trust is one of the most critical factors in any transaction in the private lending industry. When you are dealing with banks, you can trust them since they have established a name for themselves in the industry. The same concept should be followed when you are selecting a private hard money lender.  You must ensure that the hard money lender you choose is rich in experience in this industry and has a reputation for striking excellent deals for its clients.

Interest Rates

When you’re taking out a loan, the first thing that you must be worried about is the interest rate that you will be charged. The higher the interest rates, the greater the cost of borrowing. You should choose the hard money lender who adjusts interest rates according to the assets you have. While the US banks give out loans at 4%, interest rates given by hard money lenders are between 10-15%, known to be reasonable rates in today’s market.

Average Time Taken to Respond

You would choose a private money lender if you are in a financial crisis and need to get out of it quickly or your bank loan has been rejected. In both circumstances, you need financial backing quickly.

The response time for a private money lender would make or break a deal. If a private money lender takes weeks to analyze your application, then that firm is useless for you. A good response time for any lender is 24 hours after you have submitted your application. The quicker the application approval, the faster you will get your loan.

A private hard money lender drafting a loan agreement

If you’re looking for a private lender to sort out your financing issues, visit Commercial Private Equity now. We want to make hard money loans easily accessible to you. We have been providing hard money loans for over 75 years, and we use your assets to dictate the terms of any loan agreement. We provide many types of loans, including commercial hard money loans, construction loans, real estate loans, and many more specialized loans.

Contact us now for more information.

https://commercialprivateequity.com/wp-content/uploads/An-individual-thinking-about-which-lender-to-select-sitting-in-front-of-his-computer.jpg 417 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-16 08:59:242021-07-19 10:42:263 Things You Need to Consider Before Choosing a Private Hard Money Lender
Hundred-dollar bills in an individual's hands

What Are Blanket Loans?

July 15, 2021/in Blog /by Bruce Kent

The US is the hub of economic activity, and to sustain this economic environment, loans are crucial to. It is estimated that the loans granted by US banks were 15.5 trillion dollars in June 2021. However, surprisingly, even these loans are not enough to finance the projects started in the US, which is why private lenders have to step in. When the banks reject you, you go to a private lender for different types of loans, one of which is a blanket loan.

Basics Of Blanket Loan

A blanket loan is a loan that takes several properties as collateral. If you’ve more than one property, rather than finding a financing option for each one, it would be better for you to acquire a blanket loan.

Pros Of Taking A Blanket Loan

Taking out a loan has many costs associated with it. One such cost is the fees paid to the lender on every settlement. If you have more than one property, blanket loans provide you with a way to pay the settlement fees only once rather than paying it for every property, saving you a lot of money.

Think of a blanket loan as a wholesale transaction. For example, if you buy a single good, you won’t have any negotiating power. But if you go to a market to buy in a large quantity, the seller will decrease the price for you and give you attention. A blanket loan also works like this when you go to a lender with multiple properties instead of you; the negotiating power lies in your hands.

Who Should Get A Blanket Loan?

It’s sensible for individuals who have or want to buy more than one property to get a blanket loan.

Real estate builders are the first thing that comes to mind that fits the above description. If you’re a real estate builder, you will need to buy several properties at one time and then develop them simultaneously. A blanket loan can help speed up the finances you need to start the construction. If you’re a real estate investor, you can look to acquire blanket loans as they can provide you with extra finances to buy more properties and enhance your portfolio. If you are looking to expand your franchise in multiple locations as a business owner, you may want to look towards a blanket loan instead of getting separate mortgages; a blanket loan can act as a single financing option for you.

man filling out a hard money loan application

Get A Blanket Loan Now!

If you’re looking for a single financing option for your multiple properties, visit Commercial Private Equity now. We provide blanket loans to individuals who want to buy more than one property. We have been in this industry for over 75 years and strive to provide the best possible deals for our clients. Apart from blanket loans, we deal in other loans, including commercial loans, construction loans, hard money loans, private equity loans, and much more.

Fill our application form to start your financing.

https://commercialprivateequity.com/wp-content/uploads/Hundred-dollar-bills-in-an-individuals-hands.jpg 416 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-15 08:59:122021-07-15 08:59:12What Are Blanket Loans?
1st227186

Smart Ways to Use a Small Business Loan – Infographic

July 14, 2021/in Blog /by Bruce Kent

Whether you’re just starting your business or need to take things to the next level, you need accessible money.

A business loan can help you in such circumstances.

 

https://commercialprivateequity.com/wp-content/uploads/1st227186.jpg 400 644 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-14 05:49:122021-07-16 05:58:22Smart Ways to Use a Small Business Loan – Infographic
black coin bank shaped like a pig

Bridge Loans vs. Commercial Loans

July 13, 2021/in Blog /by Bruce Kent

Bridge loans and commercial loans are both types of loans that are backed up against a property. A bridging loan usually has more to do with getting access to a property through quick cash, while commercial loans will take longer to go through, but still with the aim to provide money to buy a property.

Today, we take a look at the major differences between the two and what each is more useful for.

Purpose of the Loan

As stated above, bridge loans are short-term loans that can even last a few days. This sort of loan is useful for buying property quickly before it goes off the market. This is ideal for anyone in property developers looking to either flip a house or sell the property forward at a profit.

Commercial loans often take a lot longer to be paid off, although in smaller amounts and are more commonly used to buy properties with the purpose of owning them for commercial use, such as creating an office space.

Higher Interest on Bridge Loans

Bridging loans are often available at a higher interest rate than commercial loans. While the commercial loan interest may be spread over a long time to be completed in small payments, bridge loans come with many risks attached to them for lenders and can’t come with low interest rates.

The Idea behind a bridge loan is that it will be paid back soon and hinges on the property being successfully flipped and sold forward. If that doesn’t happen in time, there’s a chance the lender loses out. To avoid the associated risk, higher interest rates are charged to make back losses.

person counting a wad of cash

Collateral Backed

One similarity both of these types of loans have is that they are backed against the bought property as collateral. So, if you fail to make it through on the payments of either one of these two types of loans, you’re likely to get the property repossessed by the lender or bank you took the loan from.

If you’re interested in investing in real estate loans to either develop or own commercial properties, get in touch with our team at Commercial Private Equity in Atlanta, GA. We offer all sorts of bridge loans, commercial loans, and other private equity loans. Contact our team to apply for a loan today.

https://commercialprivateequity.com/wp-content/uploads/black-coin-bank-shaped-like-a-pig.jpg 417 624 Bruce Kent https://commercialprivateequity.com/wp-content/uploads/Commercial-Private-Equity-Logo-2.png Bruce Kent2021-07-13 10:32:262021-07-12 10:36:05Bridge Loans vs. Commercial Loans
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