 | ||||||
|
||||||
|
| ||||||
|
||||||
|
Home About Us Contact Us Real Estate Articles |
Find out More About the Various Hard Money Commercial LoansWhy Would Someone Want Hard Money Commercial Loans? The main reasons are that these types of money financing solutions are so reputable is the extensibility. I've heard of companies inviting this type of business loan wholly unsecured, with no collateral. But these loans are under 500k. Business Cash Loans of 500k to One Billion are most always backed by Real Estate. People tend to use these Hard Money Commercial Loans as Procurement or "Bridge Loans". They want to connect the missing piece meaning they will tend to use this commercial finance loan until their traditional financing kicks in. The issue with these loans is that they are introduced at rates of 11-16%. This is approximately 5 points more than a conventional loan. What Types of Hard Money Loans are out there? You can acquire a loan like this for commercial property. This can be anything from a Strip Mall to a Grocery Store to a small office suite. You can also use them for a residential project such as a tract home development. I've heard of loans $100,000,000 and more just for one loan of this type. The Industrial Hard Money Commercial Loan is also very popular. Whether you are looking for office land, a warehouse or factory, or an office building, there is a type of Hard Money Commercial Loan that will cover you. There are a lot of flexible options, unlike the early days, that will let almost anyone with a decent business track record and some initiative to land one of these deals in their lap. Hard Money Commercial Loans also go by personal factors such as a Favorable Credit Score, Preferable Proceeds and other things. This obviously affects rates as well. The more your score, the more your LTV. LTV stands for Loan to Value Ratio which is the multiple of the value of the property the bank is subject to loan on. When applying for a huge loan of this type your Credit Score and personal history isn't weighted as much as how long you've been in business. Is your organization is victorious, massively victorious or failing? The reason the rates on Hard Money Commercial Loans are so intense is because they have to entertain the possibility of the borrower going into default. These financial loans don't shield the Investor or the Banks from the large failure rates on behalf of the borrower. But it's important to note that these types of loans are closed everyday. Business moves on and the world moves on accordingly. When attempting to find a lender that will help you acquire money financing of this type, make sure you at least setup an meeting. This doesn't have to be an in person interview, since many lenders are nationwide now. A telephone interview should be enough in most cases. What you need to do is honestly work out the numbers. If they work in your favor, regardless of the high interest rate of the loan, you have something good you can run with. That's what you have to take into consideration before you make your move. Also conduct an on the phone interview with the lender to make sure you are getting the best rates. Whether you're looking for Prime Rates or Commercial Finance Options there is definitely a viable solution for you. |
|