Senior housing industry participants are increasingly turning to non-bank lending as a source of capital for growth and other needs. Chicago-based Cambridge Realty Capital is an example of a non-bank firm that offers loans to interested parties through its extensive network of senior housing lenders and the Department of Housing and Urban Development. Its conventional debt financing program and bridge loan financing program are tailored specifically for this purpose. Senior housing owners and operators who are interested in obtaining a loan in today’s low interest environment should contact Cambridge Realty Capital to learn more about these programs and the many other financing programs that it offers.

One of the many reasons that non-bank lending has picked up recently is because non-bank lenders can approve deals much faster than traditional banks. For example, traditional banks can take up to four weeks to approve a deal. In contrast to this, non-bank lenders can sometimes approve a deal in as quickly as 24 hours. The speed with which a loan can be analyzed and approved is especially important in the senior living industry because of the increasing demand for senior housing services. The quicker an owner or developer can get approved for a loan and begin working on a construction project, the quicker they can complete the project and residents can begin moving into the community. By approving loans quickly, non-bank lenders allow developers to focus on construction instead of obtaining capital.

Another reason that non-bank lending has increased is that in contrast to banks which tend to focus on borrowers with high credit scores, non-bank lenders tend to focus on the value of the borrower’s assets instead. They do this because unlike a lot of banks, many non-bank lenders are adept at stepping in if a borrower defaults on a loan and completing whatever project the borrower was working on themselves or quickly liquidating the asset so that they don’t take a loss on the loan.

Lastly, non-bank lending has also increased because owners, operators, and developers like working with them due to their knowledge of the real estate business. For example, non-bank lenders understand the importance that developers place on having a smooth and flexible flow of capital and are more open to tailoring their loan terms to accommodate these needs. Loans with terms that take these needs into account allow for advances if necessary so that a developer can keep a construction project going when an unexpected event like a storm or flood interrupts their schedule. Developers appreciate this flexibility and non-bank lenders are often more open to loans that meet this criteria than traditional banks.

As the demand for senior housing continues to increase industry participants will need to expand their operations to meet this demand. Accordingly, parties that are interested in obtaining financing for growth or other needs should contact Cambridge Realty Capital to learn more about the many different financing programs it offers.

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