The COVID-19 pandemic has had an unprecedented economic impact on virtually every industry and sector—some more than others. The resultant loss of rent on vacant or non-paying retail tenants has led in the substantial disruption of small retail and mixed-use property valuations. These market fluctuations have prompted a significant majority of banks to either pull back on their funding options for small business loans by imposing stricter standards or even halting lending completely due to the inherent uncertainty associated with the pandemic. That’s where private money lenders like Security Financial Services come into play. Our team of experienced and knowledgeable financial experts can fill the void in situations where banks and other conventional lenders are unwilling or unable to provide funding. Here’s a quick and handy overview of how Security Financial Services can assist property owners and real estate investors weather this challenging period and continue to maintain and scale their asset portfolio.
As most owners of small retail or mixed-use properties will tell you, even with a solid business strategy and promising revenue generation data it can still be extremely difficult to get approved for a conventional loan. Banks and other lenders are notoriously hesitant to extend debt financing to smaller investors who may not be able to provide substantial capital—with multiple industry research programs indicating that the approval rate for small business entities is well under 25%. That is why small retail or mixed use property owners are turning to private lending options to obtain the liquidity they need to operate—and for good reason: we can provide acquisition or cash-out financing for these clients at significantly higher loan-to-value (LTV) ratios than a bank would be able to provide on current income levels.
Our commercial private lending process is a great way to tap into a capital source for investors looking to act quickly on promising acquisitions. Our qualification criteria are much more flexible when compared to traditional financing and the Security Financial Services team is adept in crafting customized and innovative financing options to small retail and mixed-use deals. We can provide you with the funding you need to fulfill essential short-term liquidity needs. Our loan options are intentionally designed for quick underwriting and efficient closing in order to align with your expedited timeline. In an increasingly competitive marketplace, partnering with Security Financial Services will give you a distinct business advantage, allowing you to quickly access to capital when you need it to make key acquisitions and improvements without having to worry about excessive paperwork and long waits.
Our dynamic bridge loan options can be used for commercial real estate owners for a wide range of uses, such as: putting a down-payment on a promising location, making needed tenant renovations and funding other expenses until you are able to obtain long-term take-out financing once the property is producing steady revenue. Conventional financing for virtually every property type typically requires a history of tenant payments. However, property owners may want to renovate a vacant property in order to incentivize high-paying tenants to provide a consistent stream of passive income after the property is stabilized. Our bridge financing offer you the financial means to complete the initial transaction and install reliable tenants, allowing you to pursue your investment goals without having to worry about the up-front costs of a project.
Our private lending financing options will be particularly relevant given the ongoing recovery of the Bay Area economy. With San Francisco on track to transition into the most lenient category of California’s pandemic reopening blueprint—the yellow-tier—the process of acquiring promising retail spaces will become increasingly competitive as more and more tenants are once again able to operate at full capacity and thus have the ability to make timely rent payments. As the vacancy rate drops, it will be all the more important for commercial real estate investors to have the cash on-hand to submit last-minute offers on in-demand spaces—a key ability the Security Financial Services team can provide you. Contact us today to learn more about how we can assist you in taking your real estate business to the next level.