Commercial Hard Money: Get Acquainted
The ongoing buzz about commercial hard money these days has the real estate investing community alert when seeking attractive investments. As a side effect of the recent depression, we have experienced an increase in hard money loan programs in the United States. A large majority of commercial real estate buyers are having trouble receiving financing from commercial banks. Instead, they are turning the secondary market of private lenders dealing in commercial hard money. These commercial hard money loans make it possible for owner/operators and investors to capitalize on immediate opportunities in commercial real estate.
Some examples of why one would consider commercial hard money:
- The borrower has the opportunity to purchase a property under market value, but the seller is looking to close escrow within 30 days. Typically, funding for hard money loans are processed in less than 30 days.
- The loan has matured and lender refuses to rewrite loan. First trust deed holder may be willing to discount his note or carry back a second trust deed to accommodate refinancing of the property. Borrower avoids possible foreclosure and credit rating problems.
- The borrower is not eligible for a conventional bank loan but is in need for a short term “bridge loan”. He plans to refinance his loan at a later date after he has an opportunity to rehab the property or improve his credit rating.
- The borrower is purchasing a property and the seller is willing to carry back a second trust deed as part of the down payment. Hard money financing will allow the second trust deed to be behind their first trust deed.
How Can I Find out More Information About Commercial Hard Money?
Contact the specialists at HML Investments today for further information regarding commercial hard money loans.