Finding Hard Money Commercial Loans

Hard money commercial loans are an integral part of investing today, as banks continue to refuse lending to just about everyone under the sun.  Because of an economic crunch that is permeating nearly all industries, those interesting in acquiring property while prices are low must find financing through other avenues and organizations.  Hard money commercial lenders are springing up across the country, as they help to fill in the cracks left by frugal banks, giving individuals the ability to capitalize on great real estate prices, filling out their portfolio, and setting them up for large gains in the future.  Finding these lenders isn’t difficult, as a simple internet search can deliver several names.  However, knowing what to expect can help you find the right lender for your particular situation, and ultimately help you acquire properties that can deliver a significant return in the coming recovery years.

Expected Costs

The costs associated with commercial hard money lending are often a bit higher than the loans offered by banks, but given the economic landscape, they aren’t incredibly brutal.  The average hard money loan will range from 8%-18%, with a few fees sprinkled in.  Researching the lending group that you plan on utilizing will give you exact figures in this area.  There are benefits that are provided with the increased interest rates, however.  Closing times are cut in half, as there is much less “red tape” to pass through in the process.  Further, there are often several tools that can help you turn a profit on your end, as a borrower, as the lenders want you to succeed in your venture.

Loan Amounts

The loan amounts witnessed with commercial hard money lenders can vary greatly.  It often depends on the amount of capital that the organization or individual has at their disposal.  When considering a piece of property, however, you must remember that these loans are often issues for approximately 65% of the property’s market value.  This means that you will want to find incredible deals when using these lenders, or have a great plan in place to “flip” the property and turn a profit.  Regardless of your overall approach, using these lenders to finance acquisitions can help save time, money, and of course, your portfolio!

Hard money commercial lending is helping alleviate the credit crunch that has taken the world by storm.  With banks now reversing their stance of a decade ago, and essentially freezing the lending arms of their organizations, new ways of financing acquisitions are necessary.  If you have a clear path regarding how you are going to acquire a piece of property, and then leverage it for a profit, commercial hard money lenders may be the relief that you have been searching for.  Because they provide quick closings, issue loans to those with bad or non-existent credit, as secure the loan by using the deed to the property as collateral, you can find any number of lenders that would be willing to assist you in your acquisition endeavors.