a private money lender

West Bay vs. Traditional Lenders

Timing, credit issues, regulatory restrictions, property characteristics, and unfortunate circumstances can prevent borrowers from obtaining traditional financing. As a result, borrowers are sometimes forced to seek alternative financing solutions from lending sources other than banks and financial institutions. West Bay is a niche lender in the commercial real estate marketplace uniquely positioned to provide financing solutions for loan requests unable to be secured through traditional financing vehicles. Some examples are outlined below:

  • A borrower may need to close a loan quickly to take advantage of an immediate business or real estate opportunity. The opportunity is far more profitable than the high interest rate charged on the loan.  A bank or other financial institution may offer lower rates, but securing the loan may take too long in order to take advantage of the opportunity.  In such circumstances, West Bay can expedite the financing process because its structure is more flexible and responsive than traditional lenders.
  • A borrower may have a credit problem which prevents a bank or lending institution from making the loan due to its strict credit policies and regulations, regardless of the value of the property. West Bay, after checking thoroughly to verify that the borrower has the capacity to make payments on the loan, sufficient equity, and a viable exit plan, may determine that the equity in the property and the borrower’s ability to make payments make the loan a sound investment.
  • Banks and other financial institutions often have restrictions on the use of borrowed funds (e.g. no cash out loans or restrictions on use for investment in other properties).  West Bay has no such restrictions.
  • A borrower’s property and financial position may not meet the specific profile needed by a bank or other financial institution for sale of the loan in the secondary market.  Therefore, the bank or other financial institution will not be able to facilitate the loan request.  West Bay’s loans are portfolio loans and are not subject to secondary market requirements.
  • A borrower may have an existing loan on the property and a bank will not issue a second mortgage regardless of the remaining equity in the property.  In certain cases, when there is enough equity in the property to provide sufficient security, West Bay may provide a junior position loan.
  • A bank or other financial institution may have difficulty in evaluating a non-traditional property and therefore decline the loan request.  West Bay utilizes years of experience in evaluating commercial real estate and can more readily make underwriting decisions on property criteria.
  • The borrower may have a thriving business that has specific or technical financial risks, such as a high ratio of accounts receivable, which may disqualify the borrower from receiving a bank loan.  West Bay considers compensating factors and other attributes of a loan request that mitigate against these risks.
  • West Bay provides a variety of loan programs with creative and innovative structures which most banks and other financial institutions are unable to provide due to underwriting guidelines
    or regulatory restrictions.