Explore the Power of Portfolio 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.
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, commercial real estate, healthcare real estate, and income-producing residential properties. In addition to short-term capital solutions, Wilshire also provides a host of permanent financing options through our strategic relationships.
Advantages of Private Money Lending with Wilshire Finance Partners
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 TermsWhile 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 SolutionsFrom 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 LendingUnlike 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 ExperienceEach 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
Loan Products
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 DebtThe new loan made by Wilshire is in second lien position secured by the real property collateral and sits behind an approved first lien.
✓ Mezzanine DebtMezzanine 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 DebtParticipating 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?
Why use a private money lender?
How does private money work?
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?
Is private money the same as cash?
Is private lending a good idea?
