DH Private Finance: Tailored Lending Solutions

DH Private Finance is a specialized lending unit within DH, a financial services organization. It focuses on providing customized financing solutions for real estate investors and developers who often face challenges securing traditional bank loans. Unlike conventional lenders with rigid underwriting criteria, DH Private Finance adopts a more flexible and opportunistic approach, evaluating each deal on its individual merits and potential.

Target Audience and Loan Types

The unit caters primarily to experienced real estate professionals seeking short-term, bridge financing for a variety of property-related projects. Common loan types include:

• Bridge Loans: Used to acquire, renovate, or reposition properties quickly, allowing investors to capitalize on opportunities before securing permanent financing.
• Construction Loans: Funding for new construction or significant redevelopment projects, typically with a draw schedule based on construction progress.
• Rehab Loans: Financing for the purchase and renovation of distressed properties, offering a streamlined process for acquiring and improving assets.
• Fix-and-Flip Loans: Short-term loans for purchasing, renovating, and reselling properties for profit.
• Land Loans: Financing for the acquisition of land intended for future development.

Key Features and Benefits

Several factors differentiate DH Private Finance from traditional lenders:

• Speed and Flexibility: The unit boasts a streamlined approval process and faster closing times compared to banks, enabling borrowers to act quickly on opportunities. They can adapt loan structures to suit specific project needs.
• Higher Leverage: Often offers higher loan-to-value (LTV) ratios than banks, allowing borrowers to leverage their capital more effectively.
• Focus on Asset Value: Underwriting emphasizes the value and potential of the underlying asset, rather than solely relying on the borrower’s credit history.
• Relationship-Based Approach: DH Private Finance emphasizes building strong relationships with borrowers, providing personalized service and ongoing support.
• Expertise and Experience: Staffed with experienced real estate professionals who understand the nuances of various property types and markets.

Risk Considerations

While DH Private Finance offers significant advantages, it’s crucial to acknowledge the inherent risks. Private lending typically involves higher interest rates and fees compared to conventional loans. Borrowers should carefully assess their project feasibility, exit strategy, and ability to repay the loan. Due to the nature of being short term financing if projects don’t go as planned, borrowers can be subject to high interest rates, fees, or even losing the underlying asset.

Conclusion

DH Private Finance plays a valuable role in the real estate financing landscape, providing a vital source of capital for investors and developers seeking flexible and timely funding. By focusing on asset value and building strong relationships, the unit empowers borrowers to pursue opportunities that may be inaccessible through traditional lending channels. However, borrowers should carefully weigh the risks and benefits before engaging with private lenders to ensure alignment with their investment goals.