Hairy Deals Don't Scare Bridge Lenders

LOS ANGELES—The more complex a deal, the less competition lenders have, making these otherwise unappealing transactions ideal for non-traditional lenders, said participants in the “Opportunities in Debt and Equity” panel at RealShare National Investment & Finance here last week. Those willing to go the extra mile for the borrower, with increased expertise and service, are winning the deals in a highly competitive lending environment. Also, among bridge lenders especially, those who can distinguish themselves from the competition are winning as well.

Zach Murphy, SVP, commercial lending, for Liberty SBF, said, “The hairier the deal, the less competition we have.” He added that his firm doesn’t do ground-up construction loans, and Don Pelgrim, CEO of Wilshire Finance Partners Inc. said the same thing.