Hard Money Commercial Loans 

We are still closing commercial hard money loans.  You are not wasting your time.  In fact, commercial hard money is one of the most viable sectors in the business today.  

However, it can be a treachous area of the industry and we warn borrowers to not pay good faith deposits unless they have been referred to the lender by a third party.  There are many so called comercial hard money lenders that are only taking application fees/good faith deposits and not funding loans.  There is very little recourse a borrower has if they get their fee taken and, unfortunitly, we see it happening more and more. 

As a professional commercial mortgage brokers we only get paid when your loan funds...   Therefore we will only take you to reliable, legitimate commercial hard money lenders. 

Fill out or preapproval form now for meaningful answers.

Hard money commercial loans offered through private lenders, are typically used when conventional sources are not available for the borrowers due to timing restraints, the general credit crisis or because of difficult situations.  It is an expensive option, but it's always a cheaper route than either losing the property outright, or taking on a partner.  Commercial hard money loans, in this credit crisis, are the best option for borrowers that have exhausted all conventional financing sources.        

The three biggest components in underwriting a successful hard money commercial loan are:

1.    Loan to Value on the proposed loan is not to exceed 65%.  In other words if your property if worth $1,000,000 the maximum loan amount would be $650,000.  Some lenders are willing to go as high as 70% loan to value but the norm is max 65%.  What this really means is that the lender is mitigating their risk by the amount of equity, to help offset potential loses due to borrower default.

2.  Debt Service.  In other words, how is the borrower going to be able to make the monthly payments?   If investment property, is the net income sufficient to cover the proposed loan?  Simply from the proceeds of the loan?  From other businesses/properties, etc?  As credit criteria is tightening this is becoming more and more of an issue.   

3.    Exit Strategy.  In other words, what is the plan in paying the lender back?  Are you going to rehab the subject property than sell?  Perhaps you have another transaction that you’re waiting on and will use those profits to pay off the hard money loan.  Are you going to refinance the debt with a conventional loan?  Again, how is the commercial hard money lender going to get paid back?  You have to have a solid plan. 

Among many other issues are allowed such as divorce, partnership break ups, construction issues with building, etc. 

Again, hard money commercial loans are  expensive but they are cheaper than losing your building, business or taking on a partner.  Loan amounts that we work with range from  $400,000 - $10,000,000 and the loans are for both commercial real estate investors and business owner/users.

Bottom Line: If you know you are facing a difficult situation, commercial hard money may be your best solution.  And again it is much cheaper than the normal alternatives (like taking on a partner or losing your hard earnt equity).  We can structure the best possible commercial hard money loan for your situation.  We have solid relationships with trustworthy hard money lenders that FUND deals, not just take the borrowers application fees and run.  Again, we get paid when you get your money.  Call now to discuss or get preapproved by filling out the mini commercial loan application.

248 885-8797