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Hard Money Commercial Loans

We are still closing commercial hard money loans from $500,000 to $10,000,000.  You are NOT wasting your time.  In fact, commercial hard money is making one of the strongest come backs in the business.  This sector had a severe drop in funding due to lenders being overwhelmed with defaults, as well as investors seeking other areas to invest their capital in.  We are know seeing many national hedge funds and others commercial hard money lenders coming back into the market, as most believe that commercial property values have stabilized.

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Commercial Hard Money
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If you are seeking to refinance your existing balance, at a discount, or have an oppuntisic acquisition we want to look at your loan request. Please fill out or preapproval form now for meaningful answers. 

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Commercial Hard Money Loans

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 borrower 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 real estate loan:

1.    Loan to Value on the proposed loan is not to exceed 60%.  In other words if your property if worth $1,000,000 the maximum loan amount would be $600,000.  Some lenders are willing to go as high as 65% loan to value but the norm is max 60%.  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?   Does the property or operating company cash flow?   As credit criteria tightens this is becoming more and more of an issue.   

3.    Exit Strategy.  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. 

Commercial Hard Money- Still Doable:

  • Opportunistic purchase.  For example you have found a solid multifamily property that does not fit the current conventional underwriting standards.  You want to buy the property at a discount, stabilize it, than refinance the proposed commercial hard money loan.  This is a deal we want to look at!
  • Refinance your existing balance at a discount.  Perhaps your existing bank is being seized by the FDIC and or they approached you and want you to "go away".    As an incentive to you they offered you a discount on your existing balance.  We want to look at this type of request!
  • Low personal credit scores of borrower are still allowed.  (Click here to learn about ways to improve your credit score.)
  • Lack of liquidity of borrower or borrowing entity allowed.
  •  Short time constraints - Needing to close in as short as two weeks, for example is allowed.
  • Cash flow  or occupancy level on investment property is not stabilized.  
  • Cash flow on business (for owner occupant transaction) to low to meet traditional standards is permitted.
  • Subject property is in a state of foreclosure.


Again, hard money commercial loans are cheaper than losing your building, business or taking on a partner.  And for opportunistic purchases or refinancing existing loans at a discount they can make you a tremendous amount of money.  Loan amounts that we work with range from  $500,000 - $10,000,000 and the loans are for both commercial real estate investors and business owner/users.

We want to look at your loan request!  Get preapproved now by filling out our mini commercial loan application.

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