The Reemergence of Commercial Hard Money Lending
The non-institutional, private lending hard money lending market has made a resurgence in today’s mortgage market. With the real estate market on the rebound, and the demand for real estate by investors climbing, individuals and investors alike are on the quest for financing for the many commercial real estate investment opportunities out there. Today’s hard money loan has become the equity substitute or bridge loan of choice for many developers in California, Nevada, and other parts of the United States.
While The Fed has kept interest rates at a record low, the demand for private lending or hard money loans is on the rise. Commercial hard money lending can prove to be highly profitable not only for the private lender, but also for the borrower. While the commercial hard money lender benefits from higher interests rates ( a reflection of the higher risk profile of hard money loans) the borrower also benefits for several reasons. Since hard money loans can be acquired quickly, borrowers can quickly close on the sale of a property. Borrowers of California hard money loans find this to be particularly beneficial due to the rapidly appreciating housing market, coupled with the shorter timeline for development and re-development while seeking conventional permanent financing.
The major difference between hard money loans of yesteryear and today’s hard money loans is that careful legal documentation is recommended. Due to increased environmental issues following the housing market meltdown in 2007/08, legal documentation should be at par with that of institutional investors.
Contact the specialists at HML investments today to speak with a professional with regards to your commercial hard money loans. With over twenty years of experience, our professionals will make it easy for you to apply and close a deal quickly and efficiently. Call today!