Lending guide · First lien
Private commercial real estate lenders
What private capital providers do differently, when they are the right counterparty, and how to evaluate one before you engage.
In short
A private commercial real estate lender is a non-bank capital provider that underwrites and funds loans secured by commercial property using its own capital or a discretionary vehicle. Private lenders are generally used for transitional assets, time-sensitive closings and structures conventional institutions cannot accommodate.
Hard money lending guidelines
Asset-based financing. We focus on the property's value and the owner's equity, not a credit score. Low credit does not rule out a request. Every deal is subject to underwriting.
- Annual rate
- From 11.5%
- Origination
- From 2% of the loan amount
- Term
- 6 to 12 months
- Payments
- Interest only
- Loan-to-value
- Up to 70%
- Lien position
- First position only
Third party closing costs are separate.
Every term sheet is different. Every deal goes through underwriting and has specific terms. These are guidelines, not a commitment to lend.
How private lenders differ from banks
Banks underwrite to standardized criteria and are constrained by regulatory and portfolio requirements. Private capital providers set their own criteria, can look at the property's specific situation, and can generally move on a shorter timeline.
The trade-off is that private capital is typically shorter in term and priced for the risk and speed it absorbs.
What to ask before you engage one
The most expensive outcome in a financing process is a deal that fails late. These questions surface that risk early.
- Are you lending your own capital, or brokering the request to others?
- Who makes the decision, and have I spoken with them?
- What diligence do you need, and on what timeline?
- What would cause the terms discussed to change?
- What happens if my exit takes longer than planned?
Where Stokley Capital sits
Stokley Capital is a principal. We own and operate commercial real estate, and we evaluate financing requests directly rather than acting as an intermediary. That means the person you speak with is the person assessing the request.
Request loan terms
Bring us the request directly.
Questions
Answers before you ask.
- What is a private commercial real estate lender?
- A non-bank capital provider that underwrites and funds loans secured by commercial property, generally using its own capital and its own criteria rather than standardized bank underwriting.
- When does a private lender make more sense than a bank?
- When the asset is transitional, the closing timeline is short, the structure is unusual, or the situation involves complications a conventional process cannot accommodate.
- Is Stokley Capital a broker?
- No. Stokley Capital acts as a principal, evaluating requests directly rather than shopping them to a panel of lenders.
- What loan sizes do you make, and do you publish rates?
- Loans are typically $1M–$5M, first lien only, and larger loans are considered. We do not publish rates or leverage: every request is evaluated on the specific property, situation and business plan, and any financing is subject to underwriting, diligence, documentation and approval.
Nothing on this website is an offer to lend or a commitment of capital. All loans are subject to underwriting, due diligence, documentation and approval. Published lending guidelines are for general guidance only. Every deal goes through underwriting and has specific terms.
Next step
Want to deal with a principal?
Send the property, the amount and the deadline. A principal will respond directly.