Private lender, direct lender, hard money loan, bridge loan—these are all different terms used to define the same important structured lender and loan within the commercial real estate world.

If you’re in the business of commercial real estate, chances are you’re at least familiar with hard money loans for real estate and perhaps have an idea why investors prefer private lending for their real estate financing solutions over traditional financing.

Private money lenders for real estate, such as RoseRock Capital Fund, provide transparent, fair loan terms, and will work side by side with you to help the project reach its next stage.

Here is a list of reasons why investors prefer private loans over traditional financing:

Private Loans Are Structures to Fit the Project

A loan should be structured to fit the unique project its funding, but that’s not always the case with traditional lenders such as banks. Not all real estate investment opportunities are created equal, and when you work with a private money lender for commercial real estate, you’re going into business with lenders who have experience specific to real estate.

Their level of experience and ability to create a loan exclusive to the proposed project is a major strength and benefit of working with a private lender.

Private Loans Offer Fast Bridge Financing

Do you need a short-term loan to get your project up and running? Hard money lenders for commercial real estate offer a type of short-term lending solution called a bridge loan or land bridge loan.

Land bridge loans can be very helpful in a range of circumstances, but their basic purpose is to provide quick financing solutions for your commercial real estate project.

Traditional lenders generally cannot offer such quick, short-term bridge loans. This can mean you miss out on valuable commercial real estate opportunities, simply because you don’t have access to a short-term loan when you need one.

Faster Access to Capital Than Banks Can Offer

One of the biggest benefits of working with private vs. traditional bank financing is that a hard money lender for commercial real estate will be able to get the financing you need more quickly than a bank or other traditional financer.

If you’re in need of fast funding for an acquisition, such as land, you might be out of luck if you choose to work with a traditional financer vs. a real estate private lender in Texas.

A direct private lender may be able to provide you with the funds you need for your commercial real estate project much more quickly than a bank. Banks often require a level of bureaucratic paperwork that slows down the loan process. Meaning that by the time you get approved for a loan, the opportunity may have come and gone.

Experienced real estate investors know how fast-paced the commercial real estate investment world works. When a lucrative real estate investment opportunity becomes available, it’s crucial to have the capital stack you need to complete the transaction, otherwise, your competitors will.

Private Lenders Know the Commercial Real Estate Market

Commercial real estate short-term loans are designed with the competitive real estate market in mind. Private money lenders like RoseRock Capital Fund are experienced and invested, meaning they have the know-how and are committed to seeing the project move on to the next phase.

Choosing a hard money loan rather than a traditional loan means you’ll have the cash on hand that you need when you need it.

Specialized Knowledge and Focused Experience

In the commercial real estate world, experience counts for a lot. When you work with a private lender for real estate, you’re working with people who have knowledge in the field.

A traditional lender disperses loans in a variety of areas. Experienced investors know that when they choose to work with a qualified lender for commercial real estate, they will be working with an institution and individuals geared specifically toward commercial real estate investment.

That kind of trusted practice in lending can make all the difference to a project’s success.

Key Reasons Investors Choose Private Lending

When it comes to financing your commercial real estate project, it’s important to remember that experienced investors prefer private loans over traditional funding, not just for one reason, but for many:

• Flexible loan structures tailored to fit each unique commercial real estate project and investor.
• Options for short-term bridge loans can help keep an existing project going when there’s a gap in funding. Another benefit is that these loans are quickly available when they’re most needed.
• In a competitive real estate market, private loans are available much more quickly than if you worked with a traditional lender such as a bank.
• Working with lenders and other investors who are experienced in commercial real estate.

If you’re in need of fast, secure capital for a commercial real estate investment, contact your local Texas private lender and find out what options are right for you.