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The Alternative Solution

​Let’s say tomorrow someone off the street makes you an offer to take over your business and
pay you a kickback monthly but that person never worked in the business, never struggled or
had any success in the business, would you take that deal.

If you value your time and money you wouldn’t.

As a business owner and investor you know your business and process to the” T” you know
how to solve problems for your clients, your investors, and most of all you know how to manage
the losses that come with the business so you can bounce back fast. In essence you’re the
expert.

For commercial mortgage loans their are not many experts and sources that can do commercial
loans with flexible loan terms to get your deal closed. Especially when it comes to refi-cashouts,
but there is an alternative that can.

That alternative is an alternative lending specialist.

Alternative lenders specialize in commercial mortgage loans as a non-bank lender. By being a
non-bank lender alternative lenders are able to lend and provide flexible loan terms that
traditional sources fail to provide.

Many people when they first hear of an alternative lending source automatically think hard
money, high rates and fees. Although hard money is an option for short term value add
scenarios, they are not ideal for commercial investment properties for refi-cash out loans
because their LTV’s are low, loan terms are to short, and fees are high.

Another common misconception about alternative lenders is that it is a private money loan that
you will get from someone’s retirement account. Private money investors in your local market
are great people to build a relationship with and they can also be a resource to use for raising
equity, but when it comes to commercial properties private money investors do not specialize in
offering refi -cash out loans or long term financing for commercial properties because they do
not have significant amounts of capital compared to an alternative lender.

As you can see hard money lenders and private money lenders are not active in the commercial
lending space. Commercial lending is a niche class of financing and takes a unique financing
approach to close deals. These loans are reserved for entities with significant cash on the
balance sheet to lend.