Today, private lenders are overwhelmed with loan requests. Private financial institutions are being sought by high-quality borrowers who have strong balance sheets and net worth’s exceeding 7 figures. 

The credit crunch could result in the loss of thousands of great projects and buildings. The best properties and best deals can be financed today by hard money lenders.

You can navigate here if you are looking for hard money lenders.

How Safe Are Private Lenders For Non-Bank Commercial Mortgages?

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These three items are essential if you wish to secure a commercial mortgage loan approval today for your purchase, refinance, or construction project.

Strong sponsorship

Lenders want borrowers who have a track record for success. New investors and developers who are not experienced will need to wait for the lending crisis to end. Investors will also need to have strong financial and personal records. 

Nearly all private commercial mortgage loans require signature guarantees from principal borrowers. Private lenders no longer offer non-recourse loans and will not approve any deal sponsored by marginal or weak borrowers.

Cash in the Deal

No longer are you able to get 100% financing? A large seller's second mortgage is no longer permitted to finance a buyer's financial obligation. Borrowers must bring cash to any deal. 

You can bring cash in the form of a down payment or an investment in the property in the past.  

Payment Plan (debt service and exit)

A borrower who is looking for a hard cash loan must be able to show that they can afford the mortgage payments over the loan's life and repay the loan at its maturity.