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Navigating Commercial Real Estate Challenges: Bridging Gaps with GHC Funding

With a staggering $1.5 trillion wave of commercial real estate loans on the horizon, borrowers face challenges in paying off or refinancing their loans. As lenders tighten their practices, issuing fewer loans with stricter credit requirements and higher rates, alternative solutions become crucial.

Facing Tightened Practices

In response to economic uncertainties, banks have adopted stricter lending practices, making it more challenging for borrowers. Rates have soared to levels unseen in over a decade, intensifying the difficulty of borrowing. While restructuring loans is an option, it can be a lengthy process. For those anticipating the need for a commercial loan refinance, early discussions with the bank are advised to explore available options.

Decreasing Valuations: A Compounding Factor

Commercial property valuations, including offices and retail spaces, may plummet by an estimated 40 percent. The pandemic's impact on demand, coupled with rising vacancies and reduced rent, has led to more loan defaults, decreasing the value of these real estate investments by 15 percent in the past year. With tighter lending practices and higher rates, qualifying for a loan to refinance becomes even more challenging.

Alternative: Hard Money for Borrowers

When working with existing lenders is impractical, or loan restructuring seems arduous, hard money emerges as a viable alternative. Acting as a bridge loan, hard money offers an interest-only option, reducing payments compared to conventional bank-amortized loans. Decisions are based on equity rather than credit, occupancy, or income, streamlining the application process. Hard money becomes a crucial option for those facing immediate repayment demands or requiring a quick closing.

GHC Funding: Bridging the Gap

Enter GHC Funding, a hard money lender providing interest-only loans backed by equity. If your bank denies an extension, GHC Funding may offer a lifeline based on your equity. With a streamlined application process taking mere minutes, approvals and closings happen within days. Whether buying time or seeking the convenience of a swift close, GHC Funding stands ready to assist.

If you're contemplating commercial real estate investments in the current market, explore our page for insights into factors shaping your purchase decisions. In a landscape of challenges, GHC Funding is here to bridge the financial gaps and empower your journey in the commercial real estate realm.


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