If you are entering the commercial real estate arena for the first time, you may be focused on renovating one of your properties to rent out to new tenants. If you’re a seasoned pro, you may be looking at a multifamily residence or new construction. Whichever part of the scale you’re on, finding the right financing is key, and traditional methods may not yield the results you want.
Commercial Real Estate Funding and Traditional Lending Channels
Commercial real estate investors and traditional lending channels have always had a strained relationship. A decade ago, we experienced the Great Recession, and suddenly traditional lenders became very wary of commercial real estate. Banks raised their requirements for loans and have not eased accessibility ten years later. To help rebuild and grow the market, private lenders started offering commercial real estate funding solutions for properties of all shapes and sizes. Commercial real estate funding was once again accessible, affordable, and could be scaled to fit the needs of property investors.
Single and Multifamily Properties
With a wider range of funding solutions, investors are now able to enter the commercial real estate arena by flipping houses and renting out properties. Conventional loans, SBA loans, FHA and HUD financing, and more help commercial real estate investors get the funding they need for acquisitions and renovations, and to keep projects on track so they can generate revenue faster.
Large Property Investments and Construction
Sometimes property investments and projects call for a funding strategy that falls outside most conventional debt financing. For larger projects, there are mezzanine loans, which combine features of conventional debt-based loans with an equity component. Mezzanine debt is ordered at a lower priority in the hierarchy of debt, giving commercial real estate investors more flexibility with repayment. For projects such as ground-up or large scale construction, there are special funding solutions designed to ensure a source of working capital to keep things moving on a tight schedule at every step.
At Nanaki Capital, we offer a wide range of commercial real estate funding solutions for properties and projects of all shapes and sizes. Whether you are just getting into commercial real estate or you are a seasoned pro taking on multiple projects at once, our team will work with you to provide financing tailored to your needs. Contact Nanaki Capital today to get started.