The commercial real estate market moves at such a fast pace that real estate investors and developers often find themselves needing quick and flexible financing solutions to seize lucrative opportunities. Traditionally, investors have looked to banks and institutional lenders to provide them with commercial real estate loans. But as banks have become more averse to funding commercial real estate loans and more likely to move at a snail’s pace due to red tape and bureaucracy, many borrowers are turning to private lenders like Enact Partners to fill a need.
Enact Partners offers fast, flexible, and tailored lending solutions specifically designed for commercial real estate ventures.
The Limitations of Traditional Bank Financing
Traditional banks play a vital role in finance, but their current lending practices often fall short when it comes to commercial real estate development.
- Rigid Requirements: Traditional banks typically impose strict credit scores and financial history requirements, with little room to consider promising projects that don’t fit the norm.
- Lengthy Processes: Loan approvals at traditional banks can be lengthy and cumbersome, bogging down real estate investors who need to move quickly.
- Limited Flexibility: The structures of traditional loans often lack the adaptability needed to cater to the unique needs of each project, potentially hindering success.
- Sensitivity to Interest Rate Fluctuations: Banks pay close attention to interest rate changes because they can impact their ability to lend. Multiple interest rate hikes in recent years have made banks even more cautious when considering commercial projects. Such caution translates to stricter lending criteria and a reduced availability of financing.
- Refinancing Challenges: If interest rates continue to climb, developers will be hard pressed to refinance their construction loans affordably after project completion. Access to reasonable, long-term financing is essential, and its potential absence creates significant risk for banks and for borrowers.
- Market Shifts: If interest rates go down after a construction loan is issued, this could leave developers “underwater” on their loans, facing potentially lower demand for rental units as buying a home becomes more attractive. Such a scenario represents risk to the bank.
- Strict Scrutiny of Borrower Financials: Traditional banks emphasize borrower credit scores and financial history when evaluating loans. Such as singular focus can exclude promising projects with developers who may have faced past financial hurdles—even if their current business plans and properties hold strong potential.
Unlocking Opportunity with Enact Partners
Commercial real estate loans from Enact Partners offer a powerful alternative to traditional bank financing. They provide developers and investors with the agility and flexibility they need to thrive in the commercial real estate industry.
Faster Funding: Private lenders fund qualified borrowers and their projects quickly with streamlined approvals in as little as 7 to 45 days.
Focus on Project Potential: Enact Partners sees the big picture. While banks often focus solely on borrower credit scores, we look beyond that to recognize the potential of a property and the borrower’s vision for its future, even if the borrower’s financial history is less-than-perfect.
Flexible Loan Terms and Structures: Enact Partners recognizes that every project and every borrower has unique needs. We tailor funding solutions to align with specific projects and risk profiles.
Access to Capital for Non-Traditional Projects: Traditional banks might shy away from financing projects involving vacant movie theaters, unconventional properties, land development, and even horizontal improvements. Enact Partners welcomes these unique opportunities. If a project has merit and the borrower has a good chance of success, there’s a good chance we’ll be interested.
Acquisitions, Renovations, and More: Commercial real estate loans can be used to finance renovations, expansions, or ground-up development projects. Certain types of loans can also help borrowers cover short-term operational expenses such rent, payroll, or inventory costs, or finance mergers and acquisitions. Again, if a project has merit and strong potential, Enact Partners will strive to find a suitable loan solution.
Collateral & Liquidity Flexibility: We recognize that borrowers may have different types of assets that can serve as collateral for a loan. This can include lines of credit, investments, other real estate assets, and even personal guarantees. In this way, we provide them with more options to secure the financing they need.
Less Red Tape: Enact Partners streamlines the application and loan approval process with fewer documents required. This saves valuable time and reduces the hassle often associated with loan applications.
Relationships: Enact Partners is not just a lender. We strive to be a trusted partner and confidante throughout the financing process and beyond, offering ongoing support and guidance to help borrowers achieve their commercial real estate goals.
Bottom Line
With streamlined processes and flexibility, Enact Partners makes it easier for developers and real estate investors to pursue exciting opportunities. We focus on a project’s potential and borrower reputation, not just credit scores. This opens doors to unique projects that traditional banks might not finance, such as renovating old buildings or developing vacant land. Partnering with Enact Partners also provides borrowers with the expertise and support they need to turn commercial real estate projects into reality.
Contact Enact Partners today to discuss your commercial real estate financing needs. Call us at (760) 516-7776 or visit our website at to learn more about our commercial real estate lending options.
