Loan For Commercial Property
When investing in commercial property, the race begins when you are forced to look for a loan for commercial property. Taking the conventional route through applying for a commercial loan through a bank will tend to be long and drawn out and usually are met with failure as borrowers now a days have compromised credit scores. 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.
For more information about receiving a loan for commercial property, contact the specialists at HML Investments today to get started on your loan application.