As anyone in the business of commercial real estate can attest, it is a fast-paced and generally profitable investment scenario…but you need to have access to funding when it’s required and be able to act when the time is right.

There are only so many commercial real estate opportunities available in Texas, and taking advantage of an opportunity when it comes along is only possible if you have the finances to make it happen. If you don’t have the funds at the right time, you risk losing out on valuable financial investment opportunities to competitors who have the assets readily available when needed.

This is where hard money loans from a trusted, experienced private money lender for commercial real estate come in.

Private money lenders for real estate, like RoseRock Capital Fund, are the ideal resource for prompt real estate financing solutions and hard money loans to fast-track your commercial development in Dallas.

What is a hard money loan?

A hard money loan is a short-term loan from a real estate investor that’s used as financial backing for a real estate investment prospect.

What's the benefit of choosing a private money lender vs. traditional bank financing?

The short answer is that there are multiple benefits to choosing a direct private lender for your commercial real estate short-term loan, the biggest advantage being that you’ll be able to acquire your loan more quickly than if you were working with a lender such as a bank.

Banks aren’t known for the speed of their loan processing. This can have to do with numerous factors, one of which is that they often require more paperwork in order to approve a loan, which can cause the loan approval timeline to be significantly longer.

Especially if the bank is a large corporate institution, it’s likely that your loan will get bogged down in corporate hoops to jump through, and in the meantime, your commercial real estate investment opportunity might slip away.

While banks may have an investment in the loan they give you, it’s a more personal experience when you work directly with a private lender. Hard money lenders for commercial real estate aren’t in the business of taking big risks. In most cases, your private lender will work closely with you throughout the duration of the loan project to help ensure that everything goes as planned and the project has a successful financial outcome for both parties.

Why Experience Matters

In addition, private lenders for commercial real estate are experienced in the specific area of commercial real estate—unlike banks, which process thousands of loan applications for a multitude of purposes, but don’t have a finger on the pulse when it comes to the nuances of commercial real estate lending.

Experienced and knowledgeable lenders can make a big difference when it comes to the success of your investment.

Flexibility in Rates and Terms

Another benefit of working with a direct lender in Texas is that you’re more likely to have more flexible interest rates and loan terms.

As lenders, banks often don’t have as much flexibility when it comes to setting loan terms and interest rates, but when you work with a direct lender for a commercial real estate loan, you’ll have more options available to you.

What about higher interest rates

While it’s true that most short term loans from private lenders come with higher interest rates, there are valuable details that offset the higher interest, perhaps the biggest being that these fast and more easy to access than a bank loan funds will be paid back in a short amount of time and the interest won’t have an extended period of time to accrue and burden you with an unreasonable payment when it’s time to pay back the loan.

Consider a Bridge Loan Option

If you’re looking for a hard money loan that’s short-term in order to fast-track your commercial development, a private lending option your direct lender might suggest is a short-term bridge loan.

A land bridge loan “bridges” the gap in funding until a more permanent funding solution is in place. In many instances, you’re able to use land, etc., as collateral to back your loan.

Using the assets you already have in place as backing for a loan to finalize your project helps ensure the commercial real estate project gets completed and that the investment is a success.

Real estate investment opportunities are an excellent way to build capital, but they also require funds to make it happen.

Real estate private lenders in Texas such as RoseRock Capital Fund, offer private lending options and solutions that will make all the difference when it comes to having the funding you need, when you need it.