Private money and hard money get used as if they were the same ad. On this desk they are related and not identical. Hard-money language usually means a short bridge against an asset. Private money, as this page uses it, is private credit for commercial property: it can be that bridge, and it can also be a loan a bank declined because the collateral, the entity, or the timing is outside the bank's form. In every case a private lender is the lender. Arizona bridge is where the short loan is arranged. Arizona bank is the portfolio alternative, and we are not the bank. A neutral comparison is bank versus private lenders.
Three reasons show up in Arizona files. The close date is sooner than a bank process. The income is transitional, so a coverage test fails today and may pass later. The collateral is real but unusual: a mixed building, a partial lease-up, or a structure the bank's checklist does not name. None of those reasons is a promise that a private lender will say yes. They are reasons to ask. The OCC's March 2022 booklet is about how national banks manage commercial real estate risk, including income-producing property. It explains the bank side of the line. It does not obligate a private lender, and it does not make us one.
A layer behind the first mortgage is Arizona mezzanine. That is debt placement. It is not a securities offering and not preferred stock sold by this office. Structural differences among lender types, without rates, are lender types compared. Bridge types are Arizona bridge lender types. When the private loan has done its job and a new senior loan is the point, see Arizona refinance.
What private credit will still ask for
Speed does not delete underwriting. A private lender can still want an entity chart, a plan, a budget, and a view of how it is repaid. Non-standard collateral needs a clearer story, not a thinner one. Transitional income needs a date when income is supposed to arrive, and a backup if it does not. TreppTalk's public commentary discusses commercial credit markets. It is not a covenant for your loan. The Mortgage Bankers Association's research section is the same kind of context.
The DSCR calculator helps after there is income to type. On a vacant building it only shows that you typed a number. Label projections. Do not send them as trailing statements.
Words we will not use about ourselves
We will not say we are a private-money lender, a hard-money shop, or a direct lender. We will not rank private lenders against banks. We will not quote a spread. Craig Hoebing arranges the file from Scottsdale under CMB-1047342 and NMLS 1445066. Capital Market Funds is not a Fannie Mae DUS lender. A term sheet, if a private lender issues one, is that lender's document.
Arizona private money market context
- Bank CRE supervision
- The OCC March 2022 Commercial Real Estate Lending booklet addresses income-producing real estate and construction risk for national banks and federal savings associations. Private credit on this page is arranged outside that charter. OCC Comptroller's Handbook, Commercial Real Estate Lending
- MBA research
- The Mortgage Bankers Association's research and economics section is national commercial-mortgage context. It is not an Arizona private-credit rate card. Mortgage Bankers Association, research and economics
- TreppTalk commentary
- TreppTalk is public commentary on commercial real estate credit. It is not a covenant and not a ranking of private lenders. TreppTalk
Why a sponsor asks for private credit instead of a bank form
The private lender still decides. This table is not a claim that private credit is better.
| Bank form | Private credit, arranged | |
|---|---|---|
| Timing | Committee and the bank's list | A private lender's own list, sometimes shorter |
| Income today | Often wants coverage now | May read a plan, at the lender's risk |
| Odd collateral | May not match the checklist | May be readable if the story is specific |
Private credit next to a bank or a permanent loan
| Source | When it fits |
|---|---|
| Bridge & Private | Arizona private credit and bridge arranged for speed, transitional income, or collateral outside a bank checklist. |
| Bank | The Arizona bank path when the form, the deposits, and the coverage actually fit. |
| Life Company | A permanent insurance-company loan after the property is stabilized, not a private bridge in disguise. |