Commercial Hard Money Loans

Commercial hard money is a type of funding from a private lender that is backed by the value of the property and not by the credit worthiness of the borrower. It has lower LTV ratios than traditional funding because the property itself is used as the only protection against default by the borrower. They are interest-only and non-recourse with no pre-payment penalty or exit fee. Hard money loans are commonly used in turnaround situations, short term financing and by borrowers with poor credit but substantial equity in their property or project. Everything is on a case by case basis per todays marketplace.

Land Development

Hard money offers much more flexibility to evaluate commercial land development transactions based on their own merits. Banks have strict underwriting guidelines such as borrower’s credit, LTV, and real estate value. Good transactions often don’t get funded by banks due the scrutiny of bank underwriting criteria.