Why good projects get rejected by banks
Banks operate under strict regulation: standardized credit scoring, specific types of collateral, long approval committees and limits on sector exposure. A developer with a solid project may be rejected because the land is not yet titled in a particular way, because sales are still in pre-sale, because the company is young, or simply because the timing does not fit the bank's calendar.
Private lenders evaluate the project itself: the asset, the numbers, the team and the exit. That allows them to decide faster and to accept guarantees that a bank cannot.
The main types of private real estate loans
- Bridge loan: short-term financing that covers a gap — for example, while a bank loan is approved or while units are sold.
- Mezzanine loan: capital that sits between the senior debt and the developer's equity, completing the capital structure so the project can start or continue.
- Rescue loan: financing for stalled or unfinished projects, to resume construction and protect the value already invested.
- Land or acquisition loan: to purchase land or an asset with a clear business plan.
Flexible collateral
One of the main differences is the collateral. Dahan Capital accepts guarantees that traditional banking often cannot: land, units under construction, rights over a project, or other assets with verifiable value — usually placed in a guarantee trust. This flexibility is what allows viable projects to move forward when the bank says no.
What a private lender will ask you
Preparing this information in advance speeds everything up:
- Description of the project, location and stage of progress.
- Budget, schedule and use of the funds requested.
- Documents of the land or asset offered as collateral.
- Licenses and permits obtained or in process.
- Sales plan or repayment source (exit strategy).
Cost vs. speed: making the right decision
Private capital usually costs more than bank credit, because it takes on situations and timelines that banks avoid. The right question is not only "what is the rate?" but "what does it cost not to have the money in time?". A stalled project loses value every month; a land opportunity disappears if you cannot close. For many developers, a well-structured private loan is the most profitable decision available.
