We know there are times when you need to close quickly to seize an opportunity or avoid paying taxes. We also know there are loan types and circumstances that traditional banks refuse to touch.
Given the right circumstances of borrower, location, and project, Enact Partners provides the capital you need to buy and develop property.
Our deep knowledge of real estate development and commercial lending makes us willing and able to explore opportunities with vacant commercial buildings, land, construction, and other special uses – even horizontal improvements.
Even for borrowers who don’t qualify for conventional financing due to previous foreclosure, bankruptcy, inability to substantiate income, or inadequate liquidity, we’re willing to take a look and see if there’s a way to greenlight your project.
We’re Flexible, Creative, and Solutions-Oriented
Let’s be clear, as a lender, we scrupulously follow due diligence on all loans. This includes everything from engaging an appraiser, performing property inspections, running a background check, searching titles and liens, obtaining credit reports, and anything else necessary to mitigate risks. Ultimately, our goal is to ensure the value of the property will be sufficient to cover the loan if the borrower can’t (or won’t) pay us back.
That said, we are not a bank. Banks offer little flexibility when it comes to loan structuring and addressing borrower issues. They are loathe to fund projects that don’t fit into a pre-determined loan type or scenario. Anything outside of their loan “box” is often a no-go. This approach doesn’t make banks bad, but it does make them come across as more of a lending opponent than a lending partner.
Our goal is to foster a collaborative environment that allows us to explore creative lending solutions and out-of-the box thinking. We engage with clients with an attitude of, “How can we get this done?” It’s the kind of approach that leads to expediency, transparency, success, and long-lasting relationships.
Non-Traditional Loan Scenarios
Let’s take a quick look at a few non-traditional loan scenarios where Enact Partners has helped borrowers gain access to the capital they needed.
No Borrowing Track Record—Banks don’t like to fund projects pitched to them by first-time borrowers. With no track record, banks consider newbies too risky. While first time borrowers can present a risk, for Enact Partners that doesn’t mean there’s no opportunity for us to work together. Everyone has to start somewhere, and chances are even if this is your first commercial project, you have some form of credit history (personal or otherwise) that can help us build a profile. Plus, there’s the opportunity itself and the value it represents. Because our loan decision makers work closely with borrowers, first-time or experienced, we are willing and able to get to know them, their project, and conduct the due diligence necessary to make the right call, not just dismiss borrowers out of hand because they’re first-timers.
Fast Turn Around Needed—On average, banks can take 3 to 6 months to close business loans, and sometimes up to a year or more if it’s complicated. Most borrowers aren’t willing to wait that long—nor should they need to. Enact Partners moves and closes as quickly as the borrower provides required paperwork and the appraiser (if needed) completes the assessment. Generally, our process takes from 7 to 45 days. Such quick turnaround allows borrowers to seize upon business opportunities and start producing necessary cash flow sooner rather than later.
Lending To Foreign Nationals—Working with non-US citizens to secure business purpose loans can add extra steps to the due diligence, approval, and lending process, but without the extra red tape required by banks, coupled with the diligent oversight and flexibility of our attorney, Enact Partners can provide foreign nationals creative lending solutions with expedience and transparency. A recent example was our ability to provide financing for the purchase of two newly-constructed, vacant, rental condominiums in the popular Dog Patch neighborhood of San Francisco, CA. The owner is a foreign government official, which made him a Politically Exposed Person (PEP), so Federally-insured financial institutions could not lend to him.
Horizontal Construction—Banks will not typically approve loans for horizontal construction, which includes roads, drainage, sewer, utilities, and other elements typical to a housing or commercial development. Horizontal construction is often funded by state or municipal governments, or financed by individuals, institutions, or direct lenders (like Enact Partners). Given our rich experience in real estate development and construction, we are able to see the value horizontal improvements bring to a property to make it more appealing to developers and buyers. Again, we are able to work closely with borrowers to create lending scenarios that work for them and for us.
Land Purchases for Special Uses—Not many banks will look at loans to acquire commercial land for non-traditional uses. To them, anything that doesn’t fit into their mold of what a loan should be is just too risky. Enact Partners is willing to listen to borrowers with innovative ideas. Our hands-on approach often results in site visits and extensive discussions where borrowers can share their vision for the property with us, building a case for their project, which often allows us to lend to them with confidence.
Make Enact Partners Your Commercial Lending Partner
Business and investment opportunities can’t wait, so why should you?
As a private lender, Enact Partners provides financing solutions often not available through traditional banks. Since we are not regulated by the Federal Reserve, our process is easier and faster, with a lot less hassle.
Our interest rates and associated fees may be higher, but we are more flexible and much faster than banks, adding value that can far exceed the relatively small interest rate difference. For a short-term loan (the only kind we do), the overall cost is generally not that much different than a bank loan—especially now that the Fed has raised interest rates by three quarters of a point for the fourth time in 2022.
Contact Us About Your Borrowing Needs
Enact Partners specializes in quick turnaround times, flexibility, and providing access to decision makers who can provide the capital you need to buy and develop property.
(760) 516-7776 | [email protected] | www.enactpartners.com