What Is A Commercial Hard Money Loan?
A commercial hard money loan is a specific type of loan that utilizes capital from our private lenders to borrowers who need it for their commercial project. For example, borrowers may need a commercial loan to rehab a pre-existing commercial property prior to refinancing to a traditional property mortgage. Our commercial hard money loan deals will provide you the ability to invest in a project without having to go through a traditional bank loan, which tends to be more difficult for individuals who have not previously owned commercial property. Private Capital makes the process more efficient and faster.
Fast Commercial Hard Money Lenders
Our commercial hard money loans are used to purchase or refinance commercial properties such as mixed-use buildings, retail centers, self-storage facilities, shopping complexes, student housing, mobile home parks, industrial properties, condominium complexes, and restaurants.
As a direct hard money loan provider, we help borrowers get the capital they need for their commercial project in a quick and efficient manner. We are not a “matrix lender” or a broker and can work with a wide variety of clients in different situations. We hold and service our loans and because we are a private lender and not a bank, we can close without upfront fees on both residential, investment and commercial properties. We are not bound by the stringent regulatory constraints of traditional bank lenders and can analyze a transaction to close loans that make sense for you.
Typical commercial hard money loans have loan terms between 1-3 years and range from $100,000 to $5,000,000.
Commercial Hard Money Loans At A Glance
| Topic | Answer |
|---|---|
| Types of Property: | Single Family Homes, Multi-Family Residents, Commercial Real Estate |
| Loan Values: | $50k Minimum – No Maximum Loan Amount |
| Loan Term Length: | 6 – 18 months |
| Average Interest Rate: | 8% – 15% |
| Loan-To-Value (LTV): | Up to 80% |
| Funding Time: | Can close deals as quick as 7 days |
To help assist you with cost estimates related to your commercial hard money loan, check out our loan calculator!
What Are The Benefits of Using Commercial Hard Money Lenders?
Short-term commercial loans are a great option for large and small commercial projects. When a borrower seeks a commercial loan from a bank, it typically takes several weeks for the loan to go through and they usually have high rates. A hard money commercial loan provides the borrower with a much quicker turnaround time—the average closing time is 5-10 days with zero upfront fees.
Since we work with private commercial real estate lenders,our loans come from a private lender, we offer flexible terms that work better for your project compared to what you would typically receive from a bank.
What Are Our Hard Money Commercial Loan Requirements?
The requirements for hard money commercial loans can vary depending on the type of project and the experience of the client. Typically, hard money loan requirements are less strenuous compared to traditional banking loans. Hard money loans come from private commercial real estate lenders that have more flexibility in structuring your financing arrangement. If you are interested in learning more about hard loans or our hard money commercial loan requirements then reach out to our experienced associates.
When Is a Commercial Hard Money Loan Appropriate?
There are certain situations where getting commercial hard money loans is the best option for some applicants. Read more below.
- The applicant needs a loan as soon as possible and can’t wait the time required to apply for a traditional loan
- The applicant needs a bridge loan, or funds that effectively bridge the gap between transactions
- The applicant has bad or impaired credit history
- The applicant can’t or doesn’t qualify for a traditional loan and needs a creative solution that doesn’t fit with traditional lenders
- The applicant needs working business capital
- The applicant wants to get a loan without submitting as much paperwork as is required by a traditional loan
- The applicant is of foreign nationality and may not possess substantial credit depth
- The applicant needs a complex loan with multiple pieces of collateral
- Speed of funding is essential
- The applicant’s desired transaction falls out of traditional lending parameters
- The applicant has ample equity, but their property has liens, judgments, unpaid bills, etc. that cash is needed to resolve
- The applicant’s property is occupied by their business, and their financials don’t tell the full story
- The applicant is trying to avoid foreclosure and restructure their debt or reposition the property
- The applicant needs a creative solution to a loan that doesn’t fit other lenders
Hard Money Loans For Bad Credit
One of the most common questions about commercial hard money loans is if you are eligible to receive them if you have bad credit. It is possible to receive commercial hard money loans if you have bad credit but it depends on the type of project, the value of the loan, and the experience of the client. Our team of commercial hard money lenders is open to providing loans to those with a bad credit score, so reach out to our experts if you would like more information on our credit requirements.
We accept applications from individuals with a bad credit score as well as:
- Bankruptcy
- Tax Liens
- Child Support Liens
- Divorces
- Prior Evictions
- Foreclosures
What Paperwork Do I Need to Prepare to Qualify?
Depending on the state, paperwork requirements could vary. This list can include:
- Loan Application
- Personal Financial Statement
Other Types of Loans We Offer
Our team provides a variety of different loan types to help you succeed with your project. We offer the following loan types as well other options:
Commercial Hard Money Loans FAQs
While we do consider credit score during our review process, our commercial hard money loan deals are mainly determined by the property in question. Our team is very understanding of past credit issues. Clients are typically not denied because of low credit.
Typically, our commercial hard money loans require a down payment ranging 1% to 20% cash. Past credit performance and the strength of the performance will determine the amount of cash required from a client. Frequently, refinance or “cash-out deals” require zero cash.
Yes, our team will provide proof of funds verification for commercial hard money loans after an application is completed.
Points are fees for acquiring a commercial hard money loan. Each point charged is equal to 1% of the loan amount. For example, two points on a $150,000 loan are equal to $3000.
Most commercial hard money loan deals are closed within 5-7 business days. At the HardMoney company, our loan process is extremely streamlined. However, our team can be restricted with title reports and title issues. Recently, we closed a deal within 24 hours from the time we met a client at their property. Florida is the exception: Florida transactions typically require approximately 3 weeks to close.
