Commercial Hard Money Loan Terms
What is a commercial Hard Money Loan?
A private money loan, commonly referred to as a “hard money” loan, is a non conforming mortgage on a hard asset (real estate). A commercial hard money loan is a private loan made to finance a piece of commercial property using funds from a private lender. The commercial hard money loan terms differ from lender to lender depending on the piece of property being financed. Commercial hard money loans could be used for any number of reasons, some being that the transaction needs to be made fast, the borrower has credit problems, the property is not cash flowing, etc. Being that commercial hard money loans require less documentation, the lender will make his decision based on the value of the property and the size of the loan amount in question. The lender determines this by running a series of calculations that rely heavily on the loan to value ratio (LTV). The loan to value ratio compares the value of the loan to the value of the property.
What to look for in a private lender
It is important to find a reputable lender that has a proven track record of better business practices and closing deals. While the size of the lender does not always make the difference, hard money direct lenders are often more flexible when lending funds and are more reliable as they are lending their own funds. HML Investments offers direct hard money commercial loans up to 50% LTV interest only with terms lasting from 3months to 20 years.
Contact the specialists at HML Investments today for more information about commercial hard money loan terms.