Hard Money Commercial Lending
Today’s commercial real estate investors and developers rely largely on financing from conventional lenders (banks) and private lenders (commercial private money lenders) to close a deal. All too often, investors find it daunting when applying for a conventional mortgage loan from a bank, finding the process to be wrought with obstacles prior to closing. The peace of mind that comes from knowing that private capital is readily available is worth its weight in gold for some investors.
Hard money commercial lending is reemerging as a common source for funding among commercial property investors/ borrowers today. Using private money to acquire real estate is an invaluable tool that any savvy investor will utilize. Private money loans, also called “hard money loans,” can be administered in conjunction with bank loans in the real estate acquisition process.
Commercial hard money loans are offered by private lenders such as HML Investments in order to meet the rising demand for private money among borrowers. While loan terms vary between different lenders, HML offers commercial hard money loans up to 50-70% LTV with interest rates varying from 8-14%. Factors such as credit history and experience often have an effect on interest rates, although credit is less of a concern when dealing with private. Hard money loans mainly look at the value of the property because the loan is secured by the hard asset (real estate). In the event the borrower is unable to meet the debt obligations laid out by the loan terms, property acts as collateral for the lender. Hard money commercial lending offers many benefits for both borrowers and lenders. The rising commercial real estate market makes it possible for borrowers of private money to move towards success with their commercial ventures.
Contact the specialists at HML Investments today for more information about hard money commercial lending.