A growing Bay Area manufacturer needed to close quickly on a new facility and chose to go with 12-month private money commercial loan from First Capital Trust Deeds rather than go through the 2-3 month SBA loan process through a traditional bank lender.
For businesses that need to get things done fast, private money, though more expensive in upfront costs and interest rates, can often be a very practical short-term solution to meet their needs. (Geez, that last sentence sounds like some lame sales training manual! Sorry, but it really was true in this case).
It made more sense for the buyers to go with the private money loan in order to expand the business and then take out long-term SBA financing on the building in the coming months or at the beginning of the new year. But for now, the private money commercial loan worked and got the job done.
We matched the borrowers with a Southern California trust deed investor that also owns dozens of industrial buildings, which made this a pretty simple transaction for both the borrower and the lender since they spoke the same language when it came to real estate.
Private Money Commercial Loan Terms:
- $650,000 Loan Amount (50% LTV)
- 10.00% Interest-Only
- 12-Month Term
- No Prepayment Penalty