Because they do not have the same constraints as major financial institutions, First Financial Capital says that they are still able to continue providing loans to qualified candidates.
Los Angeles, CA (PRWEB) August 20, 2015
According to an article published August 5th by CoStar, many banks and government backed lending agencies are tightening the purse strings when it comes to commercial real estate loans for apartment buildings, despite the high demand for rentals in these buildings. The article notes that less than four percent of all multifamily apartments nationwide are vacant at any given time, even with many new buildings being constructed every year. Yet, for various reasons, this increased ability of borrowers to pay back loans is not translating to an increase in commercial loans for apartment buildings in Los Angeles. Luckily for any potential borrowers looking for property financing, not all funding sources are closed off.
According to Los Angeles based direct portfolio lender First Financial Capital, this high rate of occupancy is a good sign for lenders, as healthy rent collections allow building owners to pay back any commercial real estate loans that they have borrowed. Because they do not have the same constraints as major financial institutions, First Financial Capital says that they are still able to continue providing loans to qualified candidates. They note that, in addition to apartment buildings, they also provide funding for qualified real estate buyers looking to acquire special purpose property. The reason that First Financial Capital is willing to offer loans where banks are not is that they look at more than the most basic criteria that banks use to determine credit-worthiness. Additionally, banks tend to only make the most conservative investments, and do not like investing in single business properties that would necessitate a loan default if one business were to fail.
While a large number of First Financial Capital’s returning borrowers rely on them because they can reliably approve qualified candidates for commercial loans for gas stations in Los Angeles, for example, they also offer these borrowers attractive repayment terms. Unlike long-term loans that are often preferred by bank lenders, loans from First Financial Capital carry a one to three year repayment length so that borrowers will not be making payments far into the future. Additionally, First Financial Capital notes that they do not charge pre-payment penalties so that anyone able to pay the loan back earlier can do so without penalty.
Anyone interested in seeing what kind of loan terms First Financial Capital can offer them for their next commercial real estate loan can call them today at 310-694-5060 or visit them online at http://www.firstfincap.com. Their loans range from $1 million and $25 million, allowing borrowers to make the large acquisitions needed to help their business grow.