Many banks have added private funds for CRE specialty investments without the confines of typical bank mortgages.
Providing the best rates and terms for stabilized properties with national credit tenants.
Credit Unions are active in community reinvestment and provide some of the most flexible funding.
Specialty and niche lending comes via an array of PE Funds for “target-specific” property types and risk profiles.
A Real Estate Investment Trust, or REIT is a private equity fund with specific focus on real estate debt instruments.
Commercial Mortgage Backed Securities (aka CMBS or Conduit) is a private debt investor for stabilized property types, over $5MM with national credit tenants. CMBS offers the lowest 10-year fixed rates available.
These funds don’t sell their investments in the secondary markets. This feature allows greater flexibility for “near miss” or early investments in commercial mortgages that most investors can’t consider.
Generally comprised of one or more significant family investment pools, these investors are target-specific. They can be more flexible in decisions to make larger investments with their private funds.
Private investors provide “hard money” and asset-based lending. Various property types and risk profiles use hard money lenders for acquisition, bridge and short term CRE mortgages with fast closings.