Private funding can be such an asset in residential real estate ventures. But have you thought about using it for commercial investments? Commercial private lenders allow for quicker closings, as the funding is already assembled, allowing you to get your next venture going that much faster than the typical 6-12 month timeline for construction loan funding you’re accustomed to.
Commercial Bridge Loans are primarily utilized through four scenarios:
Acquisitions: Acquisition loans are used to acquire property. It is solely based on the value of the property, not the potential value. Banks do not always see the value that investors do. Private lenders look beyond the as-is state and are more willing to lend on these properties.
Development: A development loan is used to fund the necessary improvements to convert raw land into improved, individual parcels of land for residential or commercial use. It can also include the installation of sewer, water, or power lines.
As a bridge between A&D Phases or between an A&D Loan and Construction Loan funding: One of the most common use for private funding in commercial investments is Bridge Loans. A&D loans cover both the acquisition of the land as well as the development of the property. Bridge loans can sustain the fluidity of the project through these phases before the construction begins. Construction Loans can take up to 12 months to fund! Bridge loans can provide the necessary labor and materials needed to keep the project moving forward without worry of funding delays due to traditional loan qualifications or waiting periods of the construction loan.
Various stages of the construction process or projects: Unexpected costs arise. Depending on the severity of the unexpected cost and where you are in your loan processes, private funding can be the easier, faster solution to keeping things on track throughout your project’s progression.
Regardless of which step of your commercial venture will need to be financed, we have the resources to keep your commercial venture moving forward.
Our financing fundamentals include:
At Vintage Real Estate Fund, we are here every step of the way to provide you with the private funding you need to bring your vision to life! If you are looking to build your investment portfolio with a commercial property, Contact Our Team. We can fund commercial loans up to $12 million. Let us help you get started today!