Private capital solves problems banks cannot: speed, leverage, a story the committee will not read. It costs more, it is regulated differently in each province, and the exit has to be real. The desk handles all three.
Private and alternative lending is where a commercial broker earns the client's loyalty, because it is where the bank said no and the deal still closed. It is also where brokers get into trouble: undisclosed fees, an exit that never existed, a lender whose money was not really there. The desk uses private capital the way it should be used, as a bridge to somewhere, priced and disclosed properly.
A closing in two weeks, a lender that walked, a payout demand. A MIC or private fund can commit in days where a bank needs a committee cycle.
A building being repositioned, leased up or renovated. Income today does not support conventional debt; income in eighteen months will. The private loan bridges the gap.
A borrower who needs 80 percent of value on a purchase and can carry the cost for a year while they raise the equity or sell another asset.
Credit events, thin history, unusual property. Private lenders underwrite the asset and the exit more than the borrower's history.
Most land loans and many smaller construction facilities are private or alternative by nature.
The loan is only as good as how it gets repaid. The desk plans the refinance or sale before the bridge funds and tells the client honestly if there is no exit.
Rate, lender fee, broker fee, legal costs and the cost of the exit, all in front of the client before the engagement letter is signed.
MICs, private funds and individual lenders each suit different files. The desk knows which ones close on time and which ones retrade at the table.
BC, Alberta and Ontario each regulate private mortgage disclosure differently, and Ontario's rules for private files are specific. Read the Ontario disclosure guide. The desk keeps every file compliant.
A syndicated private mortgage can cross into securities regulation. The desk knows where the line is. Read the syndicated mortgage boundary.
A client has an accepted offer on a $2.6 million industrial building closing in eighteen days, with a bank approval that fell through on an appraisal. The desk places a twelve month private first at 65 percent with a MIC that commits in four days, prices the full cost to the client in writing, and lines up a credit union refinance for month nine once the appraisal issue is resolved. The client closes. Total cost of the bridge is a fraction of the deposit they would have lost.
Read how A, B and private lending tiers work, how MICs work, and the specialty path for private and alternative lending. Bring your first private file to the desk before you quote anything.
Part of the Commercial Deal Desk. Previous: construction. Next: multifamily.
Book a discovery call. The desk will tell you whether private capital is the right answer and what it would honestly cost.