Leveraging Commercial Hard Money Loans
Opportunities abound in today’s real estate marketplace, provided that you fully understand how to leverage commercial hard money loans to seize them. These secured, privately funded loans allow real estate visionaries to quickly acquire a location by significantly shortening the appraisal and application period. And, while most of these loans are shorter than the average commercial mortgage, they can be the perfect tool for investors who truly understand the commercial real estate marketplace and realize the incredible potential in having capital faster than another bidder.
The Market is “Speeding Up”
Nearly all real estate publications highlight how the “market is improving” or note that “prices have sagged in the previous quarter”. This information is obviously relevant, but in truth, they usually fail to note the most important aspect of the current commercial property market: it’s increasing in SPEED.
Because many investors have capital, they are able to pounce on properties that have recently come available. Those who do not have enough capital are left applying with the large lenders, who have made it quite clear that they have little to no interest in lending for the foreseeable future.
In this scenario, is the “capital-less” investor left to fend for proverbial scraps? Well, not if they understand hard money lending!
The quick application and appraisal process allows the average real estate investor to keep up with the larger moguls or agencies. Those willing to do the proper research on a location can seize opportunity just as quickly as someone who has the money in hand. This dynamic has had a huge impact in the Los Angeles area alone, and is a trend that is well-documented in large markets across the country.
Utilizing commercial hard money loans can be the difference between landing the perfect commercial location and learning, while waiting at the bank, that the property has been lost to a “cash in hand” investor!