Commercial Real Estate Financing
Commercial real estate financing has become a hot topic of recent due to the escalating home values in large markets all around the U.S. While it may seem simple, the process for finding financing for your commercial real estate project can be cumbersome, but it doesn’t have to be. Commercial hard money loans can provide investors the flexibility and expedience needed to move ahead with their commercial real estate projects. Commercial hard money loans are alternative forms of financing that offers borrowers quicker financing with less paperwork. Hard money loans are also referred to as “private money loans” or “asset based” loans. While hard money loans are commonly known as loans of last resort, savvy investors associate these loans with opportunity rather than distress.
Learning how to utilize commercial hard money loans in the financing process will benefit investors and individuals alike. 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. Closing the deal quickly will enable investors to take advantage of the many benefits to commercial real estate such as increased cash flow, economies of scale, and bigger payoffs.
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 about commercial real estate financing.