Commercial Hard Money

Commercial Hard Money Loans

Commercial hard money loans are a type of funding that is secured by the value of the property and not by the credit worthiness of the borrower. There is a lower loan-to-value than traditional funding because the property itself is used as the only protection to the lender, if the borrower went into default on the loan. These are interest only loans with no pre-payment penalty or exit fee. Hard money loans are commonly sought out if you need to take the property down quickly until it becomes stabilized, prior to moving toward conventional financing.

Land Development

When looking at land loans, we will look at the population, “As Is Value”, “After Completion Value” and whether the entitlements are in place. Land Loans are very risky with higher interest rates, in most cases. Banks have strict underwriting guidelines therefore most individuals are not able to qualify for a land loan with their bank. Good transactions often are declined by banks due the heavy scrutiny of bank underwriting criteria.