Traditional Bank Loans: A Second Choice
Traditional bank loans have become a second choice for real estate investors and small business owners due to complex lending regulations and compliance costs. Low interest rates and tough real estate markets have made these more complicated. When banks do lend, the amounts are often not enough to cover development costs.
Private Lending is on the Rise
Meanwhile, the private lending industry has grown exponentially, doubling in the last 10 years. Since 2016, 80% of small business loan applications have been rejected, pushing these borrowers to private lenders. This is an opportunity for mortgage originators to capitalize on the shift.
Benefits of Alternative Lenders
Alternative lenders are not bound by the same rules as banks so they have more flexibility in their lending. They typically provide faster loan decisions—usually within 48-72 hours—and have funds available immediately for approved loans. Private lenders also have more lenient credit score requirements so they are a good option for borrowers.
Conclusion: Real Estate Investment and Lending Challenges
Real estate investment and lending is complicated. If you’re in this industry and need help getting financing for commercial or residential projects, we are transparent and honest with our clients. Click here to learn more.
Book a Free 1-on-1 Consultation Call with me Today!