If you’re a builder or investor planning a new project, one of your first steps may be to go to a conventional lender to seek out financing to make your dream a reality. Often, those dreams are crushed as banks have strict lending requirements that can prevent you and your business from moving forward. Fortunately, there are other ways to get the funds you need to start your new project. Here are four alternative loan options for builders and investors to consider when the bank says no.

HARD MONEY LOAN

A hard money loan borrows against tangible collateral (the asset being purchased) rather than using a credit assessment. For businesses wanting to close on a property sale quickly or those with a low credit score, this type of loan can be a great alternative. However, hard money loans may not be the best option for those looking to finance owner-occupied properties.

If you’re ready to talk with one of our experts about a hard money loan, click HERE!

BRIDGE LOAN

A bridge loan may be a good fit for those who have existing equity in another property that can be used while building another project. Taking cash out can be a quick way to obtain financing as your lender won’t need to evaluate construction plans or experience.

If you’re ready to chat with a professional about a bridge loan, click HERE!

PRIVATE CONSTRUCTIONS LOAN

Investors and developers can benefit most from private construction loans, even for more complex project financing situations. Whether it’s a $200,000 or $50 Million project, Barrington Commercial Capital has various options available depending on your business. Unlike banks, we won’t over-analyze your tax returns or debt-to-income ratios.

If you’re ready to talk with someone about a private construction loan, click HERE!

LOAN FROM A PRIVATE INVESTOR

If you know a private investor willing to invest the funds you need for your project, that’s great! Private investors can often provide the most flexibility for your project. However, finding a private lender can be very difficult unless you know someone directly or you’re in a network that fosters that type of relationship.

We hope you’ve enjoyed reading about four alternative loan options for builders and investors. If you still have further questions about what financing option would be best for your future goals, please contact us by submitting a form online, email us at info@bccfirm, or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook, Twitter, and LinkedIn. And lastly, sign-up for our monthly email to stay informed of the latest commercial capital options available to you and your business.