Investing With Hard Money Commercial Loans
Out of all the tasks that go into buying commercial property, the one that takes the most time and requires the most paperwork is getting the loan to finance the property. This is usually always the case when applying for a loan through a conventional lender (bank). As any savvy investor knows, time is the most valuable commodity. It can make or break a deal depending on how long you let it carry on before finding the funds needed to close. Investing with hard money commercial loans allows investors the flexibility and competitive advantage needed to acquire a lucrative position in the commercial real estate space.
Hard money loans offer financing options for individuals with poor credit, have a recent bankruptcy, or simply need to close the property in a relatively short amount of time. Hard money lenders usually require the borrower to put down a larger down payment (30 percent or more) and charge relatively higher interest rates (10-18 percent). Although these attributes may appear to be unattractive, if an investor finds an enticing deal on a piece of commercial property with very little time left and requires the loan immediately, hard money loans are the way to go.
Contact HML Investments today for further information regarding hard money commercial loans.