Insights | December 1, 2022
McKnight's Guest Column: Bank Versus Bridge
Senior living owners and operators should always ask the question, “what is the best financing for my type of transaction?” Based upon the specific situation and the opportunity, it is important to weigh the merits of traditional lending (bank) and alternative lending (bridge loan).
Wilshire Finance Partners’ CEO Don Pelgrim shares his insights on how lenders view potential transactions, and highlights the importance of alignment between the lender, owner, and operator in his recent guest column for McKnight’s Senior Living.
“All lenders will look at deals differently, but it is relevant to view a bank loan as a long-term transaction, while a bridge loan is short-term, bridging the gap to your next step. Banks are scrutinizing deals based upon their regulatory requirements and internal lending parameters, because of this, banks tend to be more rigid in their permissible lending criteria,” Don writes. “Whereas bridge lenders aren’t beholden to the same regulatory requirements, allowing bridge lenders to potentially have more flexibility and creativity when underwriting a deal.”
Read more of Don’s insights on what happens behind the scenes here.
If you are a senior living owner or operator exploring financial solutions for your community or facility, learn how Wilshire Finance Partners can help fund your path forward with solutions from our senior housing bridge lending program.
Wilshire Finance Partners is a real estate finance and investment company specializing in bridge loans and capital solutions for senior living and healthcare from $1 million to $10 million nationwide.