Austin CRE Financing: The Advantages of Using a Private Lender

Finding commercial real estate financing options in Austin, TX can be challenging for local investors. However, not all CRE financing is created equal, and it helps to understand the difference between lenders before committing to any specific loan.

Traditional Lenders Understand Banking

Traditional lenders are successful because they understand banking and bottom line numbers. This is very good if you are trusting a traditional lender to manage your savings account or a personal mortgage. The downside is that traditional lenders do not understand the Austin commercial real estate market. Traditional lenders still view Austin CRE financing as a high-risk venture, which is why there are prohibitively high requirements and long processing time for loans. The Austin commercial real estate market is very lucrative, but lenders are focused on protecting themselves and their interest ever since the recession a decade ago.

Private CRE Financing Options Are Virtually Unlimited

Traditional lending options can be distilled into two programs – bank loans and SBA loans. Even SBA loans for commercial real estate transactions in Austin can be held up by the internal red tape of traditional lending institutions. On the other hand, private lenders can offer solutions tailored to the type of property and the plans that Austin CRE investors have for their real estate, while also taking into account the overall profitability of the property after renovations and construction. Private lenders offer conventional loans as well as SBA loans, plus a wide range of other options, such as bridge and hard money loans; construction financing to ensure there is working capital at every stage of the project; equity and mezzanine solutions when debt-base financing is not a good fit for larger projects; stated income loans, and many more.

Fast and Efficient Austin CRE Financing Options

Private lenders can also provide fast closings on CRE financing solutions without red tape or arbitrary limits getting in the way. Commercial real estate transactions need to be fast and efficient to prevent delays and keep projects on track, so properties can start generating revenue. Finding the right private lender means asking questions to see if they have a good understanding of the Austin CRE market, as well as the needs of investors and property developers. At Wexum, we provide fast, efficient, and accessible CRE financing solutions tailored to markets in Austin, TX. Our team will work with you to understand your needs and goals, to structure financing to keep things moving forward. Contact Wexum today to learn more.


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