Why Investors are No Longer Using Banks For Commercial Real Estate

Written By Wesley Chong

Across the country, investors are fed up with banks. Traditional financial institutions simply cannot support the needs of commercial buyers.

Banks are:

  • Too slow (45–90+ days to close)

  • Too restrictive (DTI rules, tax returns, heavy documentation)

  • Not investor-focused (geared toward owner-occupied homes, not income-producing assets)

  • Unwilling to finance many commercial property types

  • Declining deals due to rigid internal loan policies

Meanwhile, commercial investors need:

  • Fast approvals

  • Flexible underwriting

  • Business-purpose financing

  • LLC-based structures

  • Long-term 30-year options

  • Property-income qualification

Banks can’t deliver — but private commercial lenders do.

This is why the fastest-growing investors have shifted permanently to private commercial loan programs, especially DSCR-based 30-year commercial loans.

Wesley Chong
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