Private lending in commercial real estate refers to financing provided by private individuals or companies (often called private money lenders or hard money lenders) instead of traditional banks. These loans are typically short-term, asset-backed loans used for real estate projects. With commercial real estate private lending, decisions are based more on the value and potential of the property asset and the specifics of the deal, rather than just the borrower’s credit score or financial history. This alternative financing is popular for investors and developers who need fast, flexible funding for opportunities that don’t fit bank criteria.

Private real estate loans are ideal for individual investors and small to mid-sized real estate developers who cannot secure bank financing or need more flexibility. If you have been turned down by a bank due to strict requirements or slow approval processes, private lending can be a solution. It’s designed for borrowers who might have credit challenges, limited real estate experience, or time-sensitive projects.

Private lending differs from a bank loan in several key ways. Private loans offer faster approvals and funding, flexible qualification criteria, asset-focused lending, and customized terms. This allows investors and developers to secure funding in days or weeks instead of months. Additionally, it offers loan terms, repayment schedules, and structures that can be adjusted to meet the needs of a specific project or borrower.

Unlike banks that have strict rules, private lenders offer flexible underwriting. They look beyond just credit scores or long track records. Even if you have bad credit or a short financial history, a strong asset or deal can still get approved. Traditional banks heavily scrutinize income, debt ratios, and borrower experience. Private lenders put more emphasis on the value and potential of the property (collateral) and the viability of the project itself. Unconventional or distressed properties that banks reject can often be financed through private lending.

Elevate Realty Capital is a nationwide private lender serving clients across the continental United States. We consider commercial real estate projects in all regions of the U.S., from major metropolitan areas to smaller local markets (coast to coast, excluding Hawaii and Alaska). Our familiarity with diverse markets allows us to evaluate opportunities wherever they arise within the continental U.S. So no matter if your project is in California, Texas, New York, or anywhere in between, we can likely assist with financing. Our broad geographic reach gives you the flexibility to invest in opportunities across the country without being limited by local bank lending constraints.

One of the biggest advantages of private lending is speed. Elevate Realty Capital prides itself on a streamlined approval and funding process. In many cases, we can evaluate your loan request and provide funding in a matter of weeks – sometimes even just days for straightforward deals. This rapid timeline is much faster than traditional banks, which might take months to close a loan. By moving quickly, we help borrowers secure deals and tackle urgent projects without delays. If you have a time-sensitive opportunity, our team works diligently to get you the capital when you need it most.