Private Money Lending
Real Estate Finance Solutions with Tailored Terms
Private Money Bridge Loans and Permanent Financing Solutions
Private money is an agile form of financing provided by a private entity rather than a conventional banking institution. Unlike traditional financing, private money gives you a tailored loan solution matching your unique needs and the complexities of your property.
Wilshire Finance Partners has deep experience with various property types and transaction requirements, which paves the way for a more fruitful and collaborative lending relationship.
As a fund manager and portfolio lender using its own capital rather than external sources of funding, Wilshire Finance Partners is positioned to deliver real estate financing in the form of fast and flexible portfolio bridge loans from $1 million to $10 million nationwide.
Wilshire Finance Partners has deep experience with various property types and transaction requirements, which paves the way for a more fruitful and collaborative lending relationship.
As a fund manager and portfolio lender using its own capital rather than external sources of funding, Wilshire Finance Partners is positioned to deliver real estate financing in the form of fast and flexible portfolio bridge loans from $1 million to $10 million nationwide.
With market insights and customized financing solutions, our in-house underwriting team’s experience and expertise creates certainty of execution for owners and operators of senior housing facilities, healthcare real estate, and income-producing residential properties seeking commercial bridge loans.
Advantages of Private Money Lending with Wilshire Finance Partners.
✓ Quick Loan Approvals
Our team operates without the bureaucratic red tape that slows down the speed of decision-making at traditional lending institutions. Our application and loan process are swift and streamlined, giving you faster access to capital.
✓Flexible Loan Terms
While rigid lending guidelines typically constrain conventional lenders, our internal lending platform is designed for flexibility. We adopt a personalized approach to meet your borrowing needs.
✓Diverse Suite of Lending Solutions
From apartment buildings to warehouse properties, and acquisitions to refinances, our private money lending platform addresses a broad spectrum of borrowing objectives and capital requirements.
✓Collateral-Based Lending
Unlike conventional lenders, Wilshire Finance Partners uses a collateral-based approach. With a focus on the present and future cash flow and value of the real estate collateral, our capital helps borrowers position those assets to their maximum financial advantage.
✓Personalized Borrowing Experience
Each private money transaction sets the stage for a long-lasting relationship of trust, transparency, and mutual benefit. Unlike the impersonal setting of large financial institutions, our team works directly with you to deliver customized solutions and the foundation for a long-term business relationship.
Our team operates without the bureaucratic red tape that slows down the speed of decision-making at traditional lending institutions. Our application and loan process are swift and streamlined, giving you faster access to capital.
✓Flexible Loan Terms
While rigid lending guidelines typically constrain conventional lenders, our internal lending platform is designed for flexibility. We adopt a personalized approach to meet your borrowing needs.
✓Diverse Suite of Lending Solutions
From apartment buildings to warehouse properties, and acquisitions to refinances, our private money lending platform addresses a broad spectrum of borrowing objectives and capital requirements.
✓Collateral-Based Lending
Unlike conventional lenders, Wilshire Finance Partners uses a collateral-based approach. With a focus on the present and future cash flow and value of the real estate collateral, our capital helps borrowers position those assets to their maximum financial advantage.
✓Personalized Borrowing Experience
Each private money transaction sets the stage for a long-lasting relationship of trust, transparency, and mutual benefit. Unlike the impersonal setting of large financial institutions, our team works directly with you to deliver customized solutions and the foundation for a long-term business relationship.
Transaction Types
Strategic Acquisition
A strategic acquisition is part of an acquisition strategy to purchase another property because the combined properties or the consolidation of the properties becomes more profitable together than alone.
Acuity Level Transition
Increasing or decreasing the licensed bed count in an assisted living facility or changing the bed count between assisted living and memory care units.
Value-Add Acquisition
A value-added acquisition involves a building or facility that may have poor occupancy and lower cash flow at acquisition, but strong upside potential once the issues are addressed by the buyer (i.e., value-added to the facility or business model).
Competitive Repositioning
Repurposing and repositioning a property to compete with similar properties in the market (e.g. a refresh of an apartment building or senior housing facility to increased revenue and reduce costs)
Opportunistic Acquisition
Opportunistic acquisitions present challenges but offer significant potential for the right operator and management team. Acquired at a low basis, success requires an experienced owner and a skilled in-market management team to effect a turnaround, leading to increased cash flow and the realization of positive upside.
Core Plus Investment
A core plus investment is synonymous with growth and income. The property itself is of high quality and well-occupied. Core plus property owners/operators can increase cash flows through light property improvements, management efficiencies, or increasing the occupant types.
Cash Out Refinance
A cash-out refinance is a mortgage-refinancing option that lets you convert real estate equity into cash. A new mortgage is taken out for more than your previous mortgage balance and the difference is paid to you in cash.
Rate-and-Term Refinance
A rate-and-term refinance changes the interest rate, the term—or both the rate and the term—of an existing mortgage without advancing any new money.
Growth Capital
Growth equity or expansion capital frees equity in the property to capture new opportunities and take advantage of transformational events with the potential for dramatic growth.
Leveraged Recapitalizations
Reorganizing the borrowing entity’s debt and equity capital structure to reduce costs and/or release equity, including, releasing equity to the borrower for other acquisitions or prior to an agency refinance.
Loan Products
✓ First Lien Debt
The new loan is secured by a first lien against the real property collateral. Other subordinate liens may be permitted with Wilshire’s approval.
✓ Second Lien Debt
The new loan made by Wilshire is in second lien position secured by the real property collateral and sits behind an approved first lien.
✓ Mezzanine Debt
Mezzanine debt is a type of subordinated financing used to increase leverage in a real estate transaction. Mezzanine debt is real estate-based debt, but it is not directly collateralized by the underlying real estate. Instead, it is secured by a pledge of the borrower/sponsor’s ownership interest in the entity that owns the underlying real estate.
✓ Participating Debt
Participating loans are structured as debt with equity-like economic attributes and may be secured against the real property collateral. Participating loans have priority of repayment over equity but are generally subordinate to the real estate secured debt.
The new loan is secured by a first lien against the real property collateral. Other subordinate liens may be permitted with Wilshire’s approval.
✓ Second Lien Debt
The new loan made by Wilshire is in second lien position secured by the real property collateral and sits behind an approved first lien.
✓ Mezzanine Debt
Mezzanine debt is a type of subordinated financing used to increase leverage in a real estate transaction. Mezzanine debt is real estate-based debt, but it is not directly collateralized by the underlying real estate. Instead, it is secured by a pledge of the borrower/sponsor’s ownership interest in the entity that owns the underlying real estate.
✓ Participating Debt
Participating loans are structured as debt with equity-like economic attributes and may be secured against the real property collateral. Participating loans have priority of repayment over equity but are generally subordinate to the real estate secured debt.
Permanent Loan Details
Permanent Financing Types
- ✓ Eligible Properties:
- Multifamily
- Office
- Retail
- Warehouse/Industrial
- Self-storage
- Mixed Use
- Senior Housing Facilities
- Other commercial real estate
- ✓ Rates: Fixed or floating rate
- ✓ Term: Typical terms are 3, 5, 7, and 10
- ✓ Amortization: 25-30 years and interest only also available
- ✓ Recourse: Recourse and Non-Recourse
- ✓ Prepayment Penalty/Lockout: Varies
- ✓ Eligible Properties:
- Multifamily
- Office
- Retail
- Warehouse/Industrial
- Self-storage
- Mixed Use
- Other commercial real estate
- ✓ Description: Non-Recourse may be assumable
- ✓ Terms: Typically 10 year term
- ✓ Interest Rate: Fixed and floating rate
- ✓ Prepayment Terms: Lock up or yield maintenance may be used
- ✓ Fannie Mae
- Eligible Properties:
- Multifamily
- Seniors Housing
- Healthcare Real Estate
- ✓ Loan Amount: Minimum of $5,000,000, with exceptions on a case-by-case basis
- ✓ Rate Structure: Fixed and adjustable-rate options available
- ✓ Term: 5 to 10 years (up to 30 years for fixed-rate loans)
- ✓ Amortization: Up to 30 years
- ✓ Recourse: Non-Recourse with standard exceptions, including for fraud and misrepresentation
- ✓ Prepayment Penalty / Lockout: Varies
- ✓ Programs:
- Standard DUS®
- Fannie Mae Small Loan
- Multifamily Affordable Housing (MAH)
- Fannie Mae Seniors Housing
- Cooperative Apartment Financing
- Fannie Mae Student Housing
- Moderate Rehabilitation (Mod Rehab) Supplemental
- Green Financing
- Healthy Housing Rewards
- Manufactured Housing
- ✓ Fannie Mae
- Eligible Properties:
- Multifamily
- Seniors Housing
- Healthcare Real Estate
- ✓ Loan Amount: Minimum of $5,000,000, with exceptions on a case-by-case basis
- ✓ Rate Structure: Fixed and adjustable-rate options available
- ✓ Term: 5 to 10 years (up to 30 years for fixed-rate loans)
- ✓ Amortization: Up to 30 years
- ✓ Recourse: Non-Recourse with standard exceptions, including for fraud and misrepresentation
- ✓ Prepayment Penalty / Lockout: Varies
- ✓ Programs:
- Small Balance Loan
- Green Advantage
- Freddie Mac Seniors Housing
- Cooperative Apartments
- Student Housing
- Student Housing Value-Add Loan
- Freddia Mac Supplemental Loan
- Value-Add Loan
- Lease-Up
- Moderate Rehab
- Manufactured Housing Community Loan
- Manufactured Housing Resident Owned Community Loan (MHROC)
- ✓ Eligible Properties:
- Multifamily
- Seniors Housing
- Healthcare Real Estate
- ✓ Loan Amount: $1,000,000 to $50,000,000
- ✓ Rate Structure: Fixed and adjustable-rate options available
- ✓ Term: Up to 35 years
- ✓ Amortization: Up to 35 years
- ✓ Recourse: Non-Recourse with standard exceptions, including for fraud and misrepresentation
- ✓ Prepayment Penalty / Lockout: Varies
- ✓ Programs:
- 223(f) Refinance of Section 202
- FHA 223(a)(7)
- FHA 223(f)
- FHA 221(d)(4)
- FHA 241(a)
- FHA 232 223(a)(7)
- FHA 242, 242 223(f) & 242 223(a)(7)l
- ✓ Eligible Properties:
- Multifamily
- Commercial Real Estate
- Seniors Housing
- Healthcare Real Estate
- ✓ Rate Structure: Fixed or Floating Rate
- ✓ Term: Typically 5, 7, 10, 15, 20 and 30
- ✓ Amortization: 25-30 years and interest only available on exception basis
- ✓ Recourse: Non-Recourse with standard exceptions, including for fraud and misrepresentation
- ✓ Prepayment Penalty / Lockout: Varies
- ✓Programs:
- SBA 504
- SBA 7(a)
- ✓ Eligible Properties: Owner-user properties
- ✓ Rate Structure: Floating Rate
- ✓ Term: Varies
- ✓ Amortization: Typically 25-30 years
- ✓ Recourse: Recourse
- ✓ Prepayment Penalty / Lockout: Varies
Frequently Asked Questions
What is private money?
Private money refers to funds provided by individuals or private entities rather than traditional financial institutions like banks.
How does private money work?
A private money lender offers speed, flexibility, and tailored financing—something that borrowers cannot find from traditional lenders. When time is of the essence, a private money lender can help you close the deal more quickly.
How do you get a private money loan?
The first step is for a borrower to contact private lenders like Wilshire Finance Partners. The second step involves Wilshire reviewing the borrower’s loan request and determining the loan parameters. If both parties agree to the terms of the loan, the loan request proceeds through the underwriting and closing process.
What is the difference between hard money and private money?
The terms hard money and private money are often used interchangeably, but there are often a few nuances to be aware of. A hard money loan usually refers to a loan made to a borrower or against a property that may be in distress and in need of rescue capital. Hard money loans are generally more expensive than other loan types. Private money may take into consideration several components, including the asset itself, as well as the borrower’s financial strength. While these loans are more expensive than traditional loans, private money loans are often more flexible and close more quickly than traditional loans.
Is private money the same as cash?
No. It refers to the type of lender, such as private individuals or entities, versus banks, credit unions and other traditional financial institutions.
Is private lending a good idea?
Private lending can be highly beneficial for borrowers who seek access to more flexible and streamlined sources of capital.
