For clients looking to finance commercial properties in the Caribbean, we have a number of reputable options. In fact, we have lenders who can close on commercial real estate in as little as 30 days for the right property. In business, time is money, and although our non bank options are not priced as well as the banks, they are willing to lend (something we cannot say for the banks at this time).
Private Capital Financing
Private capital is quick to source, has easier qualification and is a reliable source of funds. We have lenders eager to lend on the right projects, at manageable terms to keep your development moving on time and on budget. As opposed to our residential loans, we can lend in most locations in the Caribbean region, as the property and borrower play a larger part in the qualification.
Most of our private capital comes from the US, large hedge funds or private lenders. We do however have sources in the Caribbean as well. With private capital, equity is key, and a significant amount of ‘skin in the game’ is required on the borrowers part. This can be in the form of property equity, private equity, or cash on hand.
Although private capital for commercial financing is not the most economical, it is one of the few sources of capital that is active in the Caribbean region today.
Commercial Property Types We Finance
Although there are a number of different industry types we can lend on, we specialize in resort and development properties in the tourism sector. This also seems to be a sector our lenders have an appetite for, as the tourism industry in this region of the world has seen extensive growth since the hangover from the 2008 recession ended.
Multi-unit residential properties are also attractive at this time, depending on their location and the need for such development. Some locations are simply easier to lend than others due to the strength of the local economy, demand, government stability etc.
The Process of Securing a Commercial Mortgage
Unlike dealing with the local banks, securing financing for a commercial property through our options is a much simpler process. Although we still require financials, proforma’s, appraisals and such, we are dealing with lenders who are actually eager for your business. This is not always the feeling you get walking out of your bank.
Keep in mind, the process of lending money in the Caribbean is not cheap, and you will be required to cover the costs of securing this financing. The lenders will not put out thousands of dollars to find out the cost of your property was inflated, this is your burden to bear. Long story short, it costs money to borrow money, so expect due diligence costs.
If you are looking to purchase, refinance or develop a commercial property in the Caribbean, we want to hear from you. Talk to us today about how we can keep your project moving with our financing options.
