Hard Money Commercial Real Estate Loans
29 Feb 2020GET AHEAD WITH A NATIONWIDE PRIVATE MONEY LENDER
If you’ve been looking for hard money commercial real estate loans while trying to secure funding for an investment property call us today. If you aren’t having any luck with traditional lenders, such as a bank and other government-backed financial institution, a commercial hard money loan is an alternative worth considering.
Working with a Nationwide hard money commercial real estate lender or broker could open worlds of opportunity and make financing or refinancing possible where it otherwise might not be. For instance, if you’re not currently in a financial position a bank would consider favorable or are looking to purchase or refinance an unconventional property, a non-performing property or an under-performing property, this is where hard money comes in. Hard money loans are asset-based whereby the loan is secured with the real estate asset as collateral. Accordingly, a hard money lender will use the value of the property you own or are trying to acquire in order to work out how much you can borrow and at what rate.
THE PERKS OF A HARD MONEY COMMERCIAL REAL ESTATE LOANS
Though often given a bad rap for coming with higher rates, hard money loans offer a huge range of benefits for commercial real estate investment and are often even a key part of many investors’ strategies. Here are just some of the reasons going with a reputable commercial private money lender could work in your favor.
• Hard money is a fast solution. If you need money quickly to take advantage of commercial real estate investment before it’s passed you by, a hard money loan is your best bet. Securing a loan with a traditional lender is a notoriously slow process, taking several months. Hard money banks can issue finance much faster, making a hard money commercial real estate loan much more ideal for an opportunity you need to act on immediately.
• Hard money is a short-term solution. If you’re looking for something that is not only fast, but doesn’t lock you in for decades, a hard money commercial loan could be the answer. Generally, hard money loans last between one and five years, which means they’re an excellent interim solution for purchasing a property you intend to fix and flip or fix to get business back on track. This is why you’ve probably heard of them being referred to as hard money bridge loans.
• Hard money loans are suitable for a range of commercial properties. The sky is (almost) the limit when it comes to what you can use hard money for. For instance, Alpha Funding is a commercial real estate hard money lender offering hard money loans for various types of commercial property including retail premises, restaurants, hospitality and leisure venues, schools, gas stations, self-storage facilities, office buildings and more.
• You won’t necessarily be restricted by your current financial situation or your credit history. Conventional loans generally require high credit scores as well as a thorough look at your financial position to get things over the line. When it comes to hard money, on the other hand, the rules are a lot more relaxed. Since hard money loans are typically asset-based, hard money lenders tend to focus more on the collateral rather than the person. At Alpha Funding, we consider the whole picture and, since we’ve been working with commercial investors for a very long time, we’re good at knowing a worthwhile opportunity when we see one.
• The application process is easy. Since the rules are different for commercial real estate hard money lenders compared to traditional financial institutions, the process is generally a lot easier and more straightforward. Our application process is done online and takes just a few minutes. From here, you’ll speak to one of our experienced loan officers to arrange the necessary documents for underwriting. Once we’ve received these documents, we’ll issue you with terms, conduct a site visit and close the loan within two to three weeks of issuing the terms.
• Hard money rates aren’t as bad as you think. While hard money loans typically come with higher interest rates than conventional loans, reputable hard money brokers like Alpha Funding can offer you competitive rates that minimize your repayments. Our upfront costs include a refundable expense deposit to cover our site visit and any legal or third-party costs, giving you another way to keep costs down.
• Hard money commercial mortgages are flexible. Unlike traditional lenders, hard money lenders can finance unique properties as well as properties with higher loan to value ratios. This means you can keep your investment options wide open. We evaluate each property on a deal-by-deal basis, using our expertise and industry insight to make our decision based on your unique situation.
• A hard money loan can help you get a purchase over the line. Hard money mortgages are also a great way to get an edge on your competition. For example, if you’ve found the perfect commercial property, you could use your hard money loan to make an all-cash offer the vendor can’t refuse.
If it sounds like a hard money commercial real estate loan is the ideal solution for you, feel free to get in touch with one of our expert advisors to find out more, check your eligibility or start the application process today. Our team has extensive experience when it comes to commercial real estate hard money mortgages and offer competitive rates and terms designed to help you achieve your investment goals. We understand even the most complicated hard money loan scenarios and with invaluable industry insight, we can secure a hard money loan that delivers the best possible solution based on your needs.
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