Benefits of Commercial Hard Money
Today’s commercial hard money brokers lead non-conforming borrowers down the road to success with the use of alternative-financing programs such as hard money commercial loans. Borrowers venturing off the beaten path of conventional commercial real estate loans will find that there are many benefits of commercial hard money.
- High approval rates: With the assumption that the property itself is in good condition, the chances of a clients application being accepted are very good. With true asset-based hard-money lenders, a high percentage of loans are approved because they depend solely on the value and condition of the property or real estate — regardless of the financial standing or the credit history of the borrower.
- Limited paperwork: Because equity-based private investors make loans based on the value of the property rather than credit history, there is much less paperwork involved in the private lending process. Standard documents, such as an appraisal, title, and insurance paperwork, are required, but very little beyond that. If the lender requires more documentation, it can be a major red flag that it is not a true hard-money, asset-based lender.
- Fast closings: Because hard money loans require an amount of paperwork that is substantially less than the conventional loan process, they often close in a very quick time frame. Hard money loans are usually finalized within the span of two weeks, rather than months. Investors looking to push the process forward with their projects place a high value on closing time of mortgages and hard money gives them the speed they need.
The benefits of commercial hard money give borrowers the confidence to move ahead in the commercial real estate market. Borrowers will find that commercial hard money is a viable alternative to conventional mortgages.
Contact the specialists at HML Investments today for further information regarding commercial hard money loans.