The interest rate cut that many commercial real estate investors are waiting for has not yet materialized. It is no wonder, then, that traditional banks are still not very accessible.
Even if they are accessible, their slow and complex approval system can be a disadvantage in competitive markets.
If you want accessible and quick options, you should consider CRE financing providers instead. These companies provide equity financing, debt financing, transactional funding, and gap funding, among others.
Furthermore, as the use of earnest money in commercial real estate has become normative, many of them also provide earnest money funding.
In this article, we consider five of the best private money lenders in the US.
1. Duckfund
Duckfund is a CRE financing company that provides earnest money funding, equity funding, and debt funding for commercial properties across major US states and the Sun Belt.
Best known for:
Duckfund is best known for quick access to funds and support for investors operating in competitive markets.
Key advantages:
Ideal for:
Duckfund is ideal for investors operating in competitive markets.
2. Levine Capital
Levine Capital is a private equity firm that provides EMD financing, new construction loans, Debt-Service Coverage Ratio (DSCR) loans, bridge loans, transactional funding, gap funding, and joint venture equity.
Best known for:
Levine Capital is best known for quick access to funds.
Key advantages:
Ideal for:
CRE investors with a quick need for funds.
3. Private Capital Investors
Private Capital Investors (PCI) is a financing company that provides CRE loans, bridge funding, hard money loans, and stated income loans.
Best known for:
PCI is best known for supporting both mid-market and large-scale projects.
Key advantages:
Ideal for:
PCI is ideal for investors with imperfect credit profiles.
4. GoKapital
GoKapital is a financing company that provides commercial mortgages, hard money loans, and rental investment property loans.
Best known for:
GoKapital is best known for its transparent fees.
Key advantages:
Ideal for:
GoKapital is ideal for investors looking for fast and flexible funding.
5. EMDCC
EMDDC is a financing company that provides short-term funding that includes earnest money financing, double closings, seller carrybacks, and transactional funding to CRE developers and investors.
Best known for:
EMDCC is best known for placing a premium on experience when evaluating funding applications.
Key advantages:
Ideal for:
EMDCC is ideal for wholesalers in need of short-term funding.
Final thoughts
Duckfund provides a good combination of both short-term and long-term financing.
While providing earnest money financing, like Levine Capital and EMDCC, it also provides debt financing for the property’s purchase price, like GoKapital. However, it goes a step further by offering two equity financing options.
Also, Duckfund provides an exciting combination of speed, accessibility, and flexibility that’s hard to match.
It provides all types of funding within 48 hours of approval, and does not require a credit check for any of them. Investors can choose between equity and debt financing for the purchase price, and they can request higher EMD amounts to gain an edge in competitive markets.
