Commercial hard money loans are private loans for apartment buildings, mixed use properties, offices, retail shops, industrial warehouses, self storage and auto repair facilities. Banking institutions rely primarily on a borrower's proof of income, credit history, tax return statements etc… These institutions offer better rates but fail in terms of providing investors with quick options for financing. Typically, a conventional commercial loan can drag on for months, hard money commercial loans can close in as little as 15 days.
Why such a difference? I’m glad you asked that. Most of the time spent on waiting to close a conventional commercial loan is spent in the underwriting process. Income documents, letters to explain credit history and tax returns are required but rest assured that the doc requests won't stop there… as opposed to a commercial hard money program that relies primarily on the real estate asset and its value.
Along with needing more supporting documentation, bank institutions have minimum credit score requirements (Usually 700 and above). With a hard money program we can finance commercial property with scores as low as 580 and foreclosures and past bankruptcy are okay. Commercial hard money is perfect for settling tax liens and judgments, partner buyouts, time sensitive purchases, foreign nationals, and borrowers who already own multiple properties.
To start the loan process on your commercial property, give us a call to speak with us about your specific project so we can help you with your financing.
3700 N Eagle Rock Blvd. Suite B, Los Angeles, California 90065, United States
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