A Commercial Hard Money Loan isn't for everyone.
But it could be a viable solution for someone that can't get an everyday traditional Real Estate Loan.
Of course with this type of loan Real Estate is always the collateral, with no exceptions.
If for some reason the buyer defaults on the payments, the bank can repossess the property in due course of course, no pun intended.
The basic inference of the various types of Commercial Loans can also be defined as Sub-Prime Lending, Near Prime, B-Paper or Second Chance lending options.
So seriously would someone take out a Commercial Hard Money Loan verses a standard Commercial Loan? It's because there are determining factors such as Slight Credit Score, Enterprise Stability, proven absolute Income Level that would curb someone from getting traditional money financing or custom rates, so the defaulter in these cases will compromise for what they can get.
Some companies have a lowest amount they will lend you when helping you get a Commercial Hard Money Loan.
The companies we have researched start out at $300,000 and go up into the millions for Commercial Real Estate Properties.
There are also what they call Mezzanine Loans which is a loan that's paid back behind the sale or refinance of the Commercial Property.
It's possible for a lender to secure a portion of the proceeds upon sale of the Hard Loan debt.
These loans tend to have suitable structures such as good debt and equity ratios.
There's also a Financial Loan called a Hard Money Bridge Loan.
These types of Money Financing solutions are usually temporary until a more permanent solution comes into play.
These are used when time is of the essence, when a business move needs to be made quickly to acquire a property.
There are no upper limits on this type of loan, and the qualification requirements usually remain the same.
There are also Hard Money Construction Loans, which is another distinctive Money Financing option that can be applied to for limited home projects to larger Commercial Property projects such as the development of a strip mall or tract home development project.
In most cases for construction projects there is a reserve account setup to make sure that money is allocated properly as the project keeps moving forward.
A Commercial Hard Money Loan is typically used in both Urban & Suburban areas.
The current Prime Rates are from 11 - 16% verses the 6-7% for a standard loan.
Usually all associated Points & Fees are included in the loan and payments from these are dispursed upon closing the loan.
Also note these are Short Term Real Estate Loans that are usually given from 1-3 years.
It is always comforting to know that there is big money available to you when you need it in the form of a Commercial Hard Money Loan.
This article went over the main types of loans and how they can benefit you.
However beware of the common Predatory Lenders that lurk in this industry.
Expect to pay 11-17% for a Real Estate Loan like this.
If you are asked to pay anymore more, imho you are being taken to the cleaners.
So before you jump into anything like this, just do your research and you should come out okay.
But it could be a viable solution for someone that can't get an everyday traditional Real Estate Loan.
Of course with this type of loan Real Estate is always the collateral, with no exceptions.
If for some reason the buyer defaults on the payments, the bank can repossess the property in due course of course, no pun intended.
The basic inference of the various types of Commercial Loans can also be defined as Sub-Prime Lending, Near Prime, B-Paper or Second Chance lending options.
So seriously would someone take out a Commercial Hard Money Loan verses a standard Commercial Loan? It's because there are determining factors such as Slight Credit Score, Enterprise Stability, proven absolute Income Level that would curb someone from getting traditional money financing or custom rates, so the defaulter in these cases will compromise for what they can get.
Some companies have a lowest amount they will lend you when helping you get a Commercial Hard Money Loan.
The companies we have researched start out at $300,000 and go up into the millions for Commercial Real Estate Properties.
There are also what they call Mezzanine Loans which is a loan that's paid back behind the sale or refinance of the Commercial Property.
It's possible for a lender to secure a portion of the proceeds upon sale of the Hard Loan debt.
These loans tend to have suitable structures such as good debt and equity ratios.
There's also a Financial Loan called a Hard Money Bridge Loan.
These types of Money Financing solutions are usually temporary until a more permanent solution comes into play.
These are used when time is of the essence, when a business move needs to be made quickly to acquire a property.
There are no upper limits on this type of loan, and the qualification requirements usually remain the same.
There are also Hard Money Construction Loans, which is another distinctive Money Financing option that can be applied to for limited home projects to larger Commercial Property projects such as the development of a strip mall or tract home development project.
In most cases for construction projects there is a reserve account setup to make sure that money is allocated properly as the project keeps moving forward.
A Commercial Hard Money Loan is typically used in both Urban & Suburban areas.
The current Prime Rates are from 11 - 16% verses the 6-7% for a standard loan.
Usually all associated Points & Fees are included in the loan and payments from these are dispursed upon closing the loan.
Also note these are Short Term Real Estate Loans that are usually given from 1-3 years.
It is always comforting to know that there is big money available to you when you need it in the form of a Commercial Hard Money Loan.
This article went over the main types of loans and how they can benefit you.
However beware of the common Predatory Lenders that lurk in this industry.
Expect to pay 11-17% for a Real Estate Loan like this.
If you are asked to pay anymore more, imho you are being taken to the cleaners.
So before you jump into anything like this, just do your research and you should come out okay.
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