Despite the growth in the commercial real estate sector, the percentage of loan turndowns has increased over the past year, with no sign of subsiding. Property investors in West Palm Beach need viable financing solutions with higher approval rates and fewer delays.
Why Loan Turndowns Are on the Rise
Loan turndowns in the commercial real estate sector are nothing new. Traditional lenders played a big part in the real estate market crash of 2008, and have been trying to mitigate risk ever since. In order to protect themselves, traditional lenders have increased credit and collateral requirements while lowering the amounts borrowers can access. The COVID-19 pandemic only exacerbated this situation. More businesses and commercial investors are poised to default on existing loans for property investments, so lenders are tightening their requirements even further. At the same time, the commercial real estate market in West Palm Beach is – and has been – on a major upswing. Demand for both residential and commercial properties is rising as businesses and families need new space to thrive and grow. Yet securing adequate financing in West Palm Beach remains a challenge for property investors.
Financing for Property Investors in West Palm Beach
To avoid loan turndowns, as well as the long approval process associated with traditional lending channels, property investors in West Palm Beach use bridge and hard money loans. Unlike traditional loans, bridge and hard money solutions are not based on in-depth credit histories and bottom-line numbers. Instead, bridge and hard money loans are structured around the value of property and assets involved in the project at hand. This allows loans to be customized to fit the scope of the project and provide the financing necessary to carry the project to successful completion. Qualifying for bridge and hard money loans is much simpler and more efficient than traditional loans, so there is a high approval rate.
Avoid Loan Turndowns
HML Solutions provides bridge and hard money loans to property investors throughout West Palm Beach, for commercial projects of every shape and size. We handle approvals and processing in-house to get you the financing you need, when you need it. Contact HML Solutions today to get the financing you need.