Private lending is an invaluable practice that has existed since time immemorial. The first mentions of it date as far back as when Mesopotamia was still a country on the map. Today, this practice is flourishing across the United States. California is no exception to the rule! Private lending, especially in urban neighborhoods, plays an important part in their revitalization.

Keep reading to learn why private lenders are the unsung heroes of local communities.

Infill Development

We’ve all seen abandoned properties with dilapidated signs. This often happens when small businesses close down, forcing owners to move out. These buildings aren’t eyesores. Rather, they are treasure troves, diamonds in the rough, patiently waiting to be discovered.

By providing commercial loans, private lenders encourage the reuse of these abandoned properties. Adaptive reuse is highly beneficial for the environment as it reduces the need to construct new buildings. Not to mention that it encourages urban renewal.

Communities with lots of amenities—grocery stores, hair salons, cafes, and restaurants—attract new residents. No doubt, infill development makes neighborhoods more eye-catching for potential home buyers. So, it’s an excellent strategy to revitalize neighborhoods.

Benefits for the Environment

We’re living in an era where the trend of people relocating to suburban areas is gradually declining. No longer are the suburbs the epitome of the American dream. As the rate of car ownership among the young generation is low, people tend to settle near their offices to avoid the need to commute. As younger people focus on careers and families, they have less time to spend on renovating houses. That’s why the fix and flip market is ripening.

Non-owner-occupied loans give entrepreneurs an exciting opportunity to renovate and resell houses to homeowners who are looking for properties that don’t require remodeling. By helping younger people settle in the vicinity of their workplace, private lenders also contribute to reducing the need to commute, which in turn decreases gas emissions.

Nurturing Inclusivity

Private lending is an incredible opportunity to encourage inclusivity in the lending industry. Traditional banks follow rigid rules when it comes to deciding whether to give someone a loan to buy a house. However, private lenders have more flexibility. When making the decision, they can not only focus on an individual’s credit history, collateral, and capacity to pay, but they can also take their prospective borrower’s individuality into consideration.

What’s their unique reputation? What’s their vision? There’s always so much more to the picture than mere numbers and stats. Private lending has the potential to be more individual-focused, humane, and inclusive.

At ARC Private Lending, we are committed to helping you get the money you need, whether you plan to fix and flip, open your own business, or purchase a house for your family. We understand and embrace the unique role that private lenders play in revitalizing communities by enabling infill development, providing more conveniently located housing options that don’t require remodeling, and fostering inclusivity.

Contact us today to schedule an appointment!