The $1.1 trillion commercial real estate market in the United States is full of profitable opportunities for investors to build equity. Due to ongoing pandemic, the interest rates are extremely low, encouraging more buyers to take action. However, bank loans may not be the most suitable choice for CRE financing during COVID-19.
Let’s find out more!
Why Banks Aren’t a Good Option
There are multiple reasons that banks aren’t an excellent option to obtain CRE funding during COVID-19. For starters, banks only entertain investors and businesses with excellent credit history. If you’re unable to show a regular stream of cash flow and regular rental income, it’s more likely that they will reject your loan application.
Moreover, if you manage to pass their screening test, it takes a considerable amount of time for banks to process the loan application. It can take several weeks or possibly months till you get the money. Due to coronavirus, the timeline can be further delayed, which can potentially cost you the deal.
Finally, banks put stringent conditions in the loan contract to ensure the borrower makes the repayment. Due to the current pandemic, banks are more cautious than ever and taking additional steps to make sure their investment remains safe. It will provide you less freedom to manage your investment as you like.
What should you do?
We recommend you to opt for private lending. Using hard money loans, you’ll be able to enjoy fast processing times as, unlike conventional lenders, they don’t have a tedious loan application process. It can allow you to beat the competition and capitalize on profitable deals available in the market.
Moreover, hard money lenders aren’t concerned with your creditworthiness and don’t reject your application based on your cashflow. They don’t put stringent requirements and offer flexible terms. Most reputable private lenders have a team of professional underwriters who work closely with clients to help develop a payment plan that suits their business goals.
About Global Capital Partners Fund
Based in NYC, Global Capital Partners Fund is a renowned private commercial lender that offers hard money loans and an extensive range of financing solutions to CRE investors. The company has been operating in the commercial lending industry for over 30 years, offering suitable financing solutions at flexible terms. To find out more about their services, call at +1-800-514-7350, or visit their website.